Mosaid Buys 2,000 Nokia Wireless Patents - Boosts Defence from WiLAN Takeover
Published on: 1st Sep 2011
Note -- this news article is more than a year old.
Patent holding company and regular lawsuit filer Mosaid Technologies says that it has bought a Luxembourg company that owns approximately 2 000 wireless patents and patent applications originally filed by Nokia
The company, Core Wireless Licensing will operate as a wholly owned subsidiary of Mosaid.
Mosaid says that the patents and patent applications cover technologies used in a wide range of mobile communications devices and services. Approximately 1,200 patents and applications have been declared essential to mobile networks. The rest of the portfolio consists of approximately 800 wireless implementation patents.
The transaction not only boosts Mosaid's own patent portfolio and opportunities to sue companies based on it - the deal also boosts the company's defence against a takeover bid from rival patent troll, WiLAN.
According to Mosaid, the acquired patent portfolio is generally not transferable by Core Wireless. If Mosaid were taken over by WiLAN, then it says the contract parties have the right, at their discretion, to require Mosaid to transfer the patents to a third party for nominal consideration.
"This is a transformative event for Mosaid which will drive significant revenue growth and shareholder value over the next decade, and will create exciting new opportunities for Mosaid as one of the world's premier licensing organizations," said John Lindgren, President and CEO, Mosaid Technologies.
The company added that it believes that revenues from licensing, enforcing and monetizing this wireless portfolio will surpass the Company's total revenues since its formation in 1975.
Mosaid said that it has been working towards this transaction since March 2011.
Under the terms of the agreement, Mosaid will fund its acquisition of the portfolio through royalties from future licensing and enforcement revenues. Core Wireless will retain approximately one-third of gross royalties from future licensing and enforcement of the patents and will bear all of the costs associated with their administration, licensing, enforcement and monetization.
Core Wireless's ongoing ownership of the portfolio is subject to minimum future royalty milestones.