WiLAN’s Litigation Costs Double in Third Quarter
- December 5, 2013
WiLAN’s Q3 earnings release reported revenues of $20.7 million, down from $21.3 million in Q3 2012. Revenue for the first nine months of 2013 was $59 million, lower than $66.8 million in the prior year. The company revealed a GAAP net loss of $6.5 million, compared to $2.2 million in Q3 2012. WiLAN reported settlements in the third and fourth quarters with Alcatel-Lucent, HTC, BlackBerry, HP, Novatel Wireless, and Sierra Wireless. Terms were not disclosed, but it appears that some defendants, including Alcatel-Lucent, transferred patents to WiLAN as part of the settlements. Notably, WiLAN stated that the company’s responses to post grant reviews by the USPTO, which began after AIA processes were put in place, contributed to an increase in patent management costs. Additionally, the entity reports increased maintenance costs for its growing patent portfolio. During Q3, WiLAN acquired an undisclosed number of patents, with a reported total finance obligation of $22.1 million.