WiLan Loses In Court

Wi-Lan has suffered defeat in its patents trial against Alcatel Lucent, Ericsson, HTC and Sony, as a Texas court decided that the firms did not infringe its patents.

Wi-Lan filed a lawsuit against Alcatel Lucent, Ericsson, HTC and Sony in 2010 claiming the firms infringed patents that relate to data transmission over wireless networks. However a Texas court ruled that the four firms did not infringe Wi-Lan’s patents and found one patent Wi-Lan asserted against HTC and two it asserted against Alcatel Lucent invalid.

Wi-Lan had asserted that Alcatel Lucent and Ericsson infringed three patents, none of which claims were upheld by the court. The firm also asserted that HTC and Sony infringed another patent, and there the court not only judged against infringement but invalidated the patent.

Alcatel Lucent and HTC both said that Wi-Lan was trying to stretch its patents to cover technology in their devices.

Sally Julien, a spokeswoman for HTC said, “HTC believes that Wi-Lan has exaggerated the scope of its patent in order to extract unwarranted licensing royalties from entities who have been focused on bringing innovation forward in their own products.”

Kurt Steinert, an Alcatel Lucent spokesman said, “We think this validates our belief that Wi-Lan was stretching the boundaries of its patents, and the jury confirmed that belief.”

Wi-Lan has managed to get several companies to license its technology including Dell and Panasonic, and in May it initiated legal proceedings against Blackberry over a patent relating to Long Term Evolution network technology. However in this case the firm did not prevail against two large telecom equipment companies and two big smartphone makers.

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Is Alcatel-Lucent Running Low?

Alcatel-Lucent, which was the combination of Lucent and French network equipment provider Alcatel, has been going through a tough few years as it battles against rivals such as Huawei, Nokia Siemens and Ericsson. Now the firm has reportedly looked to investment bank Goldman Sachs for a loan in return for the firm putting up some of its assets as collateral.

According to Bloomberg’s sources, the amount of the loan has yet to be disclosed and the firm even mooted the prospect of selling assets including its undersea cable and enterprise businesses. The sources said discussions about the sale were still at an early stage and claimed neither asset could fetch more than €1bn, highlighting just how far the firm has fallen in recent years.

Alcatel-Lucent needs to sort out its balance sheet because the firm needs to service more than €2bn debt in the next three years. The company might have to look at its vast patents portfolio, though whether it might sell them or merely license them is not clear at this stage.

With Huawei and ZTE winning business away from European vendors such as Alcatel-Lucent and Nokia Siemens, it is not surprising that the firm is having to take drastic action in order to keep the lights on. However for Alcatel-Lucent it is a embarrassing situation for the firm.

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