"The reason being is that it's very often that mobile technologies are developed, not by these large companies which are very good at bringing products to market, but by small companies

But Poltorak said less than four per cent of all cases filed reach trial and are often instead settled behind closed doors.

Oct 5, 6:25 PM
Luann Lasalle, The Canadian Press

By Luann Lasalle, The Canadian Press

MONTREAL - Patent licensing company Wi-LAN Inc. is suing a number of big-name companies for use of its wireless technology in mobile devices and equipment, a case the tech industry is expected to watch.

Wi-LAN said Tuesday that it filed a patent infringement suit against Alcatel-Lucent USA Inc., Ericsson Inc., Sony Ericsson Mobile Communications, HTC America Inc. and LG Electronics and other related companies.

The case "strikes at the heart" of modern wireless communications, said Alexander Poltorak, chairman and CEO of U.S.-based General Patent Corp.

"It's going to be relevant to most of the players in the wireless and communications industry," said Poltorak, whose New York firm specializes in patent licensing and enforcement.

"That's why this lawsuit is going to be watched very closely by the industry," he said.

The Ottawa-based company alleges the companies infringed and are continuing to infringe on four of its U.S.-based wireless patents "by making and/or selling products enabled with 3GPP technology, including mobile handheld devices, base stations and other equipment."

Wi-LAN (TSX: WIN.TO) declined to comment further on the case.

It's not unusual for a small licensing company that has developed a technology to sue multinational companies over patent infringement, Poltorak said.

"The reason being is that it's very often that mobile technologies are developed, not by these large companies which are very good at bringing products to market, but by small companies such as Wi-LAN."

Poltorak said Wi-LAN is known for its wireless patents.

The suit was filed in a U.S. district court in Marshall, Texas — a frequent venue of choice for patent litigation.

Poltorak said the particular district in Texas has "efficient" patent rules, judges that regularly deal with such cases and juries with "sympathetic ears" to patent holders.

Such suits are common in the technology industry and the stakes can be high, since the patents recognize legal rights to intellectual property — the know-how that is required to make gadgets and systems function.

But Poltorak said less than four per cent of all cases filed reach trial and are often instead settled behind closed doors.

"Most litigants don't like to bet the farm," he said.

Wi-LAN, which has a portfolio of patents that it licenses to other companies, will be represented by Vinson & Elkins, an international law firm with expertise in intellectual property litigation.

Last spring, Wi-LAN launched a court challenge against other high-tech heavyweights, alleging they have infringed on one of its U.S. patents with their Bluetooth short-range wireless products.

Apple Inc. (Nasdaq: AAPL), Dell Inc. (Nasdaq: DELL), Hewlett-Packard Co. (NYSE: HPQ), Intel Corp. (Nasdaq: INTC), Motorola Inc. (NYSE: MOT), Sony Corp. (NYSE: SNE) and Texas Instruments Inc. (NYSE: TXN) were named among the defendants in that suit.