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16 May 2014Patents

Wi-LAN to sell off 2,000 patents in strategy shift

Wi-LAN has confirmed it will sell up to 2,000 of its patents.

The Canadian non-practising entity (NPE) announced the proposed sale as part of a “strategy to address current market dynamics ... [and to] maximise shareholder value” on May 14.

After conducting a strategic review, the company announced a series of measures that include selectively entering into licensing contracts with other companies and reducing the number of patents the company purchases.

Investors reacted negatively to the proposals as share prices for the NPE dropped by 9 percent.

The move is a change in the company’s strategy to acquire patents in order to license them out to companies. The company currently holds about 4,500 patents.

Wi-LAN has recently entered into licensing agreements with HTC, Sierra Wireless and Toshiba. In late 2013, the NPE lost a case it brought against Apple for infringing a patent covering wireless technology in mobile devices.

NPEs are known for acquiring many patents and later filing lawsuits against big companies believed to have infringed them.

Last year the Obama administration issued five executive orders designed to discourage the allegedly frivolous litigation brought by NPEs.

These orders included reducing broad patent claims and requiring patent holders to inform the US Patent and Trademark Office of personal details as they engage in legal proceedings.

Earlier this week, legal analytics company Lex Machina reported that the top ten companies filing patents suit last year were all NPEs.

The report also named NPEs Melvino/Arrival Star, Wyncomm and Thermolife as the most prolific filers of patent litigation, each being responsible for more than 100 new cases.

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