News Release Details

Nokia Licenses Wi-LAN’s Patent Portfolio

12/04/2006

OTTAWA, Ontario – December 4, 2006 – Wi-LAN Inc. (TSX: WIN) announced today that Nokia Corporation of Finland has licensed the Wi-LAN patent portfolio.

Under the terms of the agreement, Nokia receives a fully paid-up license to Wi-LAN’s current patent portfolio. In partial consideration for this license, Nokia will transfer to Wi-LAN patents, both issued and pending, related to telecommunications and asymmetric digital subscriber line (“ADSL”) technologies.  These patents have been valued at $34 million, based on a preliminary independent valuation by a large accounting firm.  As additional consideration, Nokia will pay approximately  $15.2 million (€10 million) immediately to Wi-LAN. Additional details of the agreement must be kept confidential.

ADSL is the access technology used by over two thirds of the world’s 255 million broadband Internet subscribers and allows service providers to supply high-speed Internet access to residential and business customers over their standard telephone lines. 

 “We are delighted that Nokia is the first company to have taken a license since we refocused the company on licensing intellectual property.” said Jim Skippen, President & CEO of Wi-LAN. “We believe there are well over 140 companies that require a license to our patents, so despite being satisfied with the Nokia deal, our licensing team remains busy and focused on furthering our discussions with a number of other companies.”

"This deal, including the sale of Nokia ADSL patents, fits nicely with Nokia’s strategic approach by further enhancing the return from Nokia’s patent assets, and by securing access to the next generation wireless technologies," said Ilkka Rahnasto, Vice President, Nokia Intellectual Property Rights.

“This is the first license signed under our Early License Program, which was launched on October 12 and offers preferential rates to early licensees.” said Bill Middleton, VP Licensing and General Counsel of Wi-LAN.  Although as in this case with Nokia, we prefer to negotiate a settlement wherever possible, we are prepared to litigate if necessary to ensure Wi-LAN receives fair compensation for the use of its intellectual property.”

About Wi-LAN Inc.
Wi-LAN, founded in 1992, licenses intellectual property that drives a full range of products providing access in wireless and wireline telecommunications markets. Some of the fundamental technologies covered by Wi-LAN’s patents include: CDMA, Wi-Fi, WiMAX and DSL. Wi-LAN has already licensed its intellectual property to a number of major companies, including Cisco, Fujitsu and Nokia.

Forward-looking Information
Certain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties. These may include, without limitation, statements based on current expectations involving a number of risks and uncertainties related to all aspects of the wireless and wireline communications industry and the global economy. These risks and uncertainties include, but are not restricted to: the almost exclusive reliance of the Company on licensing its patent portfolio to generate revenues and cash flows; that the Company may be required to establish the enforceability of its patents in court to obtain material licensing revenues; that the Company will need to acquire or develop new patents to continue to grow its business; that the Company requires investment to translate its intellectual property position into sustainable profit in the market; that the Company is dependent on the performance of its key officers and employees; that changes in patent legislation or in the interpretation or application of patent litigation could materially adversely affect the Company; and that the Company has and may make acquisitions of products, technologies or businesses which could materially adversely affect the Company. These risks and uncertainties may cause actual results to differ from information contained herein, when estimates and assumptions have been used to measure and report results. There can be no assurance that such forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

All trademarks and brands mentioned in this release are the property of their respective owners.

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For more information, please contact Wi-LAN:

Steve Bower, CFO
C: 613-697-7159
O: 613-688-4898
E: sbower@wi-lan.com  

Lynne Bermel, Director Corporate Communications
C: 613-864-4058
O: 613-688-4897
E: lbermel@wi-lan.com

 

 

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