Wi-Lan plunges pre-market after losing patent lawsuit against Apple

Shares of Wi-Lan (WILNtumble 26.6% pre-market after a jury found against the company in its patent infringement lawsuit against Apple.

Specifically, the jury determined that patent RE37,802 was not infringed and that claims 1 and 10 were invalid. Wi-Lan is reviewing options and may appeal.

Canaccord Genuity downgraded Wi-Lan to Speculative Buy following the verdict.

Comments (3)
  • imac007
    , contributor
    Comments (669) | Send Message
    Investment thesis
    Shares purchased at $2.86.
    Dividend return rate at that price = 5.3%
    Company profile - no debt
    Market cap of ~ $350M
    Cash on hand of $140M+ - 40% cash position
    Repurchase plan in place to acquire 11M shares of about 120M outstanding.
    Quarterly report guidance does not include any settlement income from many reported in the quarter.
    No Apple revenue was already priced into the stock.
    Several Apple and other suits are pending.
    Taking out the cash from the market cap, any Apple win could be equal to the remaining value of the company.
    Settlements include return of litigation costs per the case.
    Previously reported losses as per GAAP rules will have been recouped.
    High margin licensing contract model.
    Has deals with some of the worlds largest tech companies.
    Presence of
    Short term catalyst - early Nov. Quarterly report - exceeding guidance
    Medium-term catalysts - more settlements and litigation maturities in pipeline
    24 Oct 2013, 11:13 AM Reply Like
  • Billybaroo
    , contributor
    Comments (71) | Send Message
    The judicial system in the US is a major joke for patent trials. The jury was 8 folks off the street who decide on whether highly technical patents are valid or not...huge joke. The USPO should be disbanded if a jury of 8 rubes off the street can invalidate a patent.
    24 Oct 2013, 10:41 PM Reply Like
  • imac007
    , contributor
    Comments (669) | Send Message
    This is about oversight that protects regulations and maintains standards.
    1) imagine a non-expert panel deciding if your food is safe to eat.
    2) drug approvals done by a random panel of neighbors
    3) a law expert and 8 joes conducting an EPA environmental assessment.


    There are countless examples of experts providing oversight. They make the determination and then bring in the law for available legal remedies.


    Technology pay the same taxes but get a second rate flawed system. They get legal experts and random consumer panels being bombarded by technology experts in order to try to educate them to the point of being able to make a fair decision. It fails miserably.


    Imagine diagnosing illness that way. Taking the final diagnosis and treatment decisions out of the doctors hands and relegating them to expert witness status, before an panel consisting of a malpractice lawyer and random strangers.


    Expert oversight can consult legal experts if needed. The whole process is faster when experts decide rather than joe citizen. The system is inconsistent and flawed.


    This is just one issue. The drug and natural substance patent rules are killing thousands of people yearly. The system needs rebuilding from the ground up.
    25 Oct 2013, 03:15 PM Reply Like
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