Research in Motion Settles Patent Dispute with Wi-LAN

Patent licensing firm, Wi-LAN has settled the pending patent litigation with Canada's Research in Motion (RIM) and updated its 2008 financial guidance as a result of recent license signings. As a result of the legal settlement, RIM has obtained a license to certain patents of Wi-LAN in the area of wireless technology and the litigation between the two companies will be dismissed.

The specific terms of the agreement are confidential, however the company does say that it has increased its annual revenues target by nearly US$10 million.

Revenues for the fiscal year are now expected to be within the range of $24.5 million to $25.5 million, up from previous guidance of $15 million to $20 million. Operating expenses, excluding stock based compensation, are expected to be in the range of $19 million to $20 million, up from previous guidance of $16 million to $19 million. Pro-forma earnings are expected to be within the range of $8 million to $9.5 million, up from previous guidance of $2 million to $5 million.

During the fiscal third quarter, the Company signed license agreements for wireless-related technologies with 12 companies, up from 10 in the previous quarter, including new licensee, AOpen and previously announced licensees, ASUSTek Computer and Xirrus. With Research In Motion, the total number of wireless licensees signed to date is 34. In addition, during the fiscal third quarter, the Company signed license agreements for its V-chip patents with 12 companies, up from seven in the previous quarter, including new licensee China Hualu Group. The total number of V-chip licensees signed to date is 94.

Posted to the site on 11th August 2008