Since Wi-LAN was created in 1992, we have pursued an aggressive program of developing and protecting our intellectual property. Our licensing program follows a three-step process designed to reach amicable, mutually-advantageous business agreements with companies using our IP:

1. Contact
   Wi-LAN typically delivers a letter reminding companies of those products that Wi-LAN believes are infringing its patents. The aim is to encourage those companies to start meaningful discussions concerning our licensing program.
   
   
2. Negotiations
   After receiving Wi-LAN’s reminder letters, prospective licensees usually request more detailed infringement analyses and technical information concerning the Wi-LAN portfolio. Generally discussions evolve into business negotiations about the prospects for and terms of a license to be taken by the customer. Licensing negotiations vary in duration depending upon the breadth of the customer’s products offering and the licensing arrangements being considered.
   
   
3. Agreement
   The license agreement itself is a carefully-crafted and lengthy document which often requires the exchange of several drafts before it can be finalized. There is no “typical license deal.” The terms of license agreements vary as widely as do the commercial activities of different licensee companies.

While our policy is to always attempt to negotiate fair license agreements, Wi-LAN fully expects it may be required to litigate from time to time in order to enforce our legal rights where a prospective licensee unduly delays talks, or refuses to enter into a license agreement. Litigation; however, is not an end in itself and most often best understood as another step in the negotiation process. Like most lawsuits, well over 90% of patent litigation cases never proceed to trial because the parties agree to conclude a settlement agreement.