WiLAN shares reached their highest level in almost four years after the Ottawa-based patent licensing firm announced a settlement to end litigation with technology giant Intel Corp.
WiLAN CEO Jim Skippen (File photo)
The two firms signed a memorandum of agreement providing for Intel to sign a multi-year patent with WiLAN. Further details of the pact, including financial terms, were confidential.
Shares of WiLAN were trading at $6.97 on the Toronto Stock Exchange late on Friday afternoon, up almost 12 per cent.
Intel was one of the defendants named in a major lawsuit that was initially planned to enter the U.S. District Court for the Marshall division of the eastern district of Texas during the first week of January.
However, a dispute over the claim's wording led to a re-examination by court officials that pushed the date to February.
Other defendants included Apple, Best Buy, Broadcom, Dell, Hewlett-Packard, Sony and Toshiba.
“A lot is riding on the case, but we feel very optimistic about it as we continue to review our position," WiLAN chief executive Jim Skippen said in a December interview.
"We do know there is always uncertainty when you go to court … but we’re feeling very good about it."
WiLAN said the weeks-long delay could allow some settlement discussions to conclude before the trial date.
Separately, LG Electronics Inc., a fellow defendant in the February lawsuit,settled most of its pending litigation with WiLAN late in December. A V-chip case first made public in January 2010 will still proceed.
Intel was also involved in an 18-company lawsuit brought about by WiLAN in April 2010.