RSSCanadian Firm Sues 22, Claims it Owns Wi-Fi Tech
By Tim Conneally | Published November 1, 2007, 4:06 PM
A Canadian technology licensing company called Wi-Lan Inc. launched an assault today on no fewer than 22 companies, including both equipment vendors and consumer electronics retailers. The claim isn't new - patent infringement - but the strategy is certainly unique.
Each of the company's three infringement suits deal with individual patents, two of which were actually invented by the co-founders of the company, dealing with Wi-Fi/OFDM and multicode applications.
In a conference call today, Wi-Lan said its strategy in this case is to apply pressure to various points on the sales chain, focusing on the equipment vendors who use infringing chips, and pressuring retailers to carry only compliant merchandise rather than go after the chip vendors themselves.
"Our primary focus will be on the equipment vendor," said Wi-Lan President and CEO Jim Skippen, "and we'll let them sort out who pays the royalty. But we think the proper way for damages to be assessed is a royalty on, say, the laptop."
Wi-Lan holds over 220 patents relating to CDMA, DSL, DOCSIS, V-Chip, Wi-Fi, and WiMAX.
The suit will begin in the IP capital of America, Marshall, Texas. In all, the following defendants were named: Acer, Apple, Atheros Communications, Belkin, Best Buy, Buffalo Technology, Broadcom, Circuit City, Dell, D-Link, Gateway Inc, Hewlett-Packard, Infineon Technologies, Intel, Lenovo Group, Mervell Semiconductor, Netgear, Sony, Texas Instruments, Toshiba, Westell Technologies, and 2wire Inc. Wi-Lan chose Marshall, the company said, because it is typically seen as a fast jurisdiction in patent cases.
Chipmakers were included in the suits, the company said, only as a preventative measure.
"Say for argument's sake we just sued the laptop guys in Texas, then it seems to be the strategy of the chip guys to then file a declatory judgment action in California or wherever, and force us to litigate all over the place. So we wanted to prevent that, and force everyone into Texas." Skippen remarked.
Though it sounds, with all the parties involved, like a massive undertaking, litigation appears to be a common step in Wi-LAN's intellectual property licensing procedure. Written in the company's "Licensing Program" on its Web site is the passage: "Like most lawsuits, well over 90% of patent litigation cases never proceed to trial because the parties agree to conclude a settlement agreement."
Perhaps part of this 90%-plus settlement rate has to do with whom Wi-Lan focuses upon. "We want to bring maximum pressure upon the concerned parties to enter into settlements." Skippen said.
I wrote an opinion article on this at
http://www.cagrippa.com/?p=15
Check it out if you wish, it was easier to comment in a blog than cut and paste into this site. I draw comparisons of the Wi-LAN case to that of SCO, NTP, and RAMBUS.
Score: 0
|Who knows, maybe they do have money owed to them or not but anyway I wonder if the guy that invented "the on/off switch" ever got a patent on it. =P
Score: 0
|My beef with this type of behavior is what has been stated already, that they waited a long time to file a lawsuit. This should have been done years ago when all of this technology started becoming mainstream.
Companies who know what is going on and wait until the offending company can pay big are just blood suckers.
If they were infringed upon then they should be paid, but it should have been done years ago.
Score: 0
|For the most part, your timing argument makes sense, but from a business perspective other questions need to be addressed. Is their more money to be extracted from royalties now than there would have been when the technology was immature? What if the technology had migrated such that their patents were not being exploited? No doubt that if Wi-Lan's claim is true, they wanted their patents violated, and they want the industry to use the methods in their patents as defacto standard.
Their is no way that this technology will be taken away from the consumers, it won't even become more expensive to us.
Furthermore, Wi-Lan is a company in decline. What that means is, this may be a final gamble to bring revenue into the company. If this is the case then their board understands this risk, either they win this lawsuit or they turn out the lights.
Score: 0
|Their first mistake: Not suing Microsoft.
Everybody gets money out of them, and they settle pretty damned fast these days. Might as well get some cash cushioning for the rest of the party!
Score: 0
|Wi-LAN has been around for years, they have developed ISP grade wireless access points for wireless broadband. I have known many individuals who have worked for them. I don't know the validity of their claim, but if patents are infringed, they deserve to be compensated.
It is entirely predictable that when IP based lawsuits are launched, the first reaction is just like what is displayed in prior comments, even if their rightful property has been stolen, the mass uneducated will alway side with those accused of stealing.
Interesting behavior...
Why can't we reserve opinion until the courts decide? Quite simply, the masses are too stupid.
Score: 0
|Not because the masses are stupid. Your (american) law is just stupid, how the hell you could developed even a thought of patenting ideas. Patents like this, and software patents is just a big red STOP sign for creativity :|
But hey... it's your country, do what you wan't. I have the comfort of living in Europe :)
Score: 0
|Perhaps you missed that Wi-Lan is a Canadian company, not American. Lawsuits cross political barriers more and more each day. It is very naive to think that you wont be affected or that you can do anything you want as long as you are across the big pool of water.
Score: 0
|There is nothing wrong with taking the time to think of an idea and want to profit off the time and work it took to develop that idea. If you don't patent it how will you ever make any money? No company has the right to use someone elses idea that is patented without paying that person. Believe it or not people do like to make money even in Europe.
And just how does patenting a individual idea stop creativity? Nothings stopping anyone from thinking up another idea.
Score: 0
|America is not a country. It consists of 3 continents, north, central and south America. How ever the United States is a country. Is that what you are referring to? Or the plaintiff in this case who is a Canadian company?
So when you say American law and refer to a country, who's law are you really commenting on?
Score: 0
|"America is not a country. It consists of 3 continents, north, central and south America."
Ummm, last time I checked, only North America and South America are continents. Central America is just a region, mostly part of the continent of North America. Although most people understand that "American law" means the law of the United States.
"How ever the United States is a country. Is that what you are referring to?"
Given that the suit was filed in TEXAS (a state within the United States, for those unaware), I'm betting that yes, the United States is the country being referred to. Call it a hunch.
"Or the plaintiff in this case who is a Canadian company?"
Again, since the suit was filed in Texas, the Canadian origin of the plaintiff isn't really the determining factor here. The plaintiff is suing in the USA, so (United States of) American law applies.
Oh, as a side note, by your initial point of America not being a country, Wi-LAN should be considered an "American" company (located in North America) anyway, right? LOL
"So when you say American law and refer to a country, who's law are you really commenting on?"
One last time, the lawsuit was filed in the UNITED STATES OF AMERICA, the only nation that routinely goes by the name "America". Draw your own conclusions.
Ask a citizen of the United States what nationality they are, will they say they are a "United Statesian"? Or an "American"? And the citizens of what other country will refer to themselves as "American"? Venezuela, perhaps? Maybe Canada? Argentina? None of them.
I'm not sure why your comment in particular ticked me off so, but if you are going to pick someone to bits (and someone whose comment richly deserves picking apart for its arrogance , if nothing else) for a single word, as least have a clue...
Score: 0
|"Your (american) law is just stupid"
"But hey... it's your country, do what you wan't. I have the comfort of living in Europe :)"
WOW! So much arrogance and egotism packed in one short post!
BTW, congratulations on having such a complete and thorough understanding of the legal system of the United States that you can so blithely refer to the whole thing as "stupid"...
Score: 0
|It was meant to make a point. Thanks for helping me prove it. So what you are saying in your response is that most people make assumptions. I agree with you 100%. I have some friends from Michigan and New York that hate it when you call the Americans. They will argue that even though I am from Canada that I am just as much an American as they are.
My point is, don't make assumptions. My point is directed to everyone. Sorry if it ticked you off.
"as least have a clue..."????? lol jk
Score: 0
|You think that if you ask a citizen of the United States what nationality they are. It more say that they are U.S.citizen than American. Sure a few will say their are an American. But more will say a U.S.citizen.
Score: 0
|It's not my law
I'm not american
I don't live in america
Your assumption does not go a long way to making me thing you're smart
Score: 0
|Unless that person is from Texas, which is kind of its own country, anyway. I dont know anyone that regularly says, "I am a U.S. Citizen." No, Americans are lazy, we just say "American."
Score: 0
|Here we go again, parasites at work. Does this Wi-lan Inc actually produce something?
Patent laws need a serious overhaul. No doubt the Marshall Texas Courts would not agree.
Score: 0
|same here this is just stupid, wifi's been around way to long for them to think of this now
Score: 0
|How convenient to do this in late 2007. I hope they get countered into oblivion.
Score: 0
|