RIM Pays Off Wi-LAN To Get Rid Of Another Patent Suit
from the losers-litigate dept
Wi-LAN is a Canadian company that did some early work in the wireless field, but was unable to actually make much of a business out of its work, so it took the loser's route: it started suing lots of companies for patent infringement. It's the same old story: winners innovate, losers litigate -- and litigate seems to be about all that Wi-LAN does these days. Recently, Wi-LAN targeted RIM, another Canadian company, who famously was pressured to cough up hundreds of millions in another patent battle to NTP a few years ago. These days, RIM seems to have learned an unfortunate lesson: it's easier to just pay up whoever sues you for patent infringement, no matter how legit (or not) their claim is.So, it should come as no surprise that RIM has agreed to pay off Wi-LAN to make the lawsuit go away. No details were released, but given that Wi-LAN put out a separate press release saying that its "earnings" (a misnomer if there ever were one) for the quarter should be between $24.5 million and $25.5 million from the previous guidance of $15 million to $20 million you can take a guess how much this cost RIM. Definitely cheaper than a lawsuit, though this will only encourage two bad results: Wi-LAN will keep suing companies that actually do something, and more companies with questionable patents on wireless technologies will line up to get some cash from RIM. This isn't encouraging innovation. It's encouraging extortion.