Wi-Lan lawsuits target RIM, Motorola, UTStarcom

By Susan Taylor

OTTAWA (Reuters) - Canadian technology licensing company Wi-Lan Inc (WIN.TO: Quote, Profile, Research) has launched a new round of patent infringement lawsuits, targeting Motorola Inc (MOT.N: Quote, Profile, Research), Research In Motion (RIM.TO: Quote, Profile, Research), and UTStarcom Inc (UTSI.O: Quote, Profile, Research), the company said on Friday.

Wi-Lan said it has started litigation in the U.S. District Court for the Eastern District of Texas, Marshall Division, alleging that the companies' mobile devices and other equipment infringe Wi-Lan patents. It did not specify what damages or remedies it will seek under the legal action.

It is impossible to predict the outcome of such a case, said Haywood Securities analyst Dev Bhangui, because companies typically come under heavy pressure to settle outside court and avoid the risk of an uncertain ruling.

"It's a high-stakes poker game," he said.

BlackBerry maker Research In Motion, for example, paid NTP Inc $612.5 million to settle a damaging and drawn-out patent infringement fight in 2006.

Shares in Wi-Lan gained nearly 10 percent to C$1.92 on the Toronto Stock Exchange on Friday. The one-time market darling has slumped more than 75 percent in the past 16 months as investors fretted over its unpredictable revenue stream.

The Ottawa-based company also said on Friday that it has settled its dispute with Marvell Semiconductor Inc (MRVL.O: Quote, Profile, Research) in the U.S. District Court for the Northern District of California. It did not disclose terms.

Wi-Lan recently said that it has cash reserves of nearly C$92 million to fight patent suits and negotiate deals. In late 2007, the company launched litigation against 22 major technology manufacturers, including Apple, Dell, Hewlett-Packard and Intel, claiming patent infringement.