Nokia licenses Wi-LAN patents for $49.2M
Nokia has licensed Ottawa-based Wi-LAN Inc.'s patent portfolio in exchange for $15.2 million US and some of the Finnish cellular equipment maker's current and pending patents.
Nokia Corp. will transfer to Wi-LAN its patents for asymmetric digital subscriber lines (ADSL)— commonly used for broadband internet connections to the home or businesses over telephone lines. ADSL is used by more than two-thirds of the world's 255 million broadband internet subscribers.
Wi-LAN stock surged 64 per cent Monday on news of the patent deal — jumping $1.72 to a new 52-week high of $4.40 on the TSX.
The technology has been valued at $34 million in a preliminary independent evaluation.
Wi-LAN says the agreement is just one of many it hopes to reach in the near future.
"We believe there are well over 140 companies that require a licence 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," Jim Skippen, president and CEO of Wi-LAN said in a written statement.
Wi-LAN owns patents to a range of wireless and wireline telecommunications technologies that include the commonly used cellular telephone standard CDMA, the Wi-Fi wireless networking standard, and high-speed wireless networking technology WiMAX.