BANGALORE (Reuters) - Shares of patent licensing firm Wi-LAN Inc fell 18 percent on Wednesday, a day after a U.S. magistrate judge recommended summary judgment on LG Electronics Inc’s defense against the Canadian company’s patent infringement lawsuit.
In January 2010, Wi-LAN sued LG for patent infringement of its V-Chip used for parental control of television content.
Wi-LAN plans to file an objection to Tuesday’s recommendation.
“More than the licensing money involved, this case was key for the remaining tier I TV OEMs and as such we are concerned with the present development until we obtain some clarity,” Fraser Mackenzie analyst Dev Bhangui said.
He had estimated Wi-LAN to gain $50-$55 million from a favorable ruling.
“This was an ‘almost done’ deal and that LG had nearly reneged on the agreement. The recommendation wording shows WIN’s V-chip patents are valid but that LG was not seen as an infringer,” Bhangui said.
He added that Wi-LAN will take this to highest court levels due to its strategic importance within the television sector.
Summary judgments are resorted to as a short cut to a trial, where the patent is relatively straightforward and there is little ground for contention.
Shares of the company were trading down 12 percent at C$8.19 on the Toronto Stock Exchange. They touched a low of C$7.71 earlier.
Reporting by Aftab Ahmed in Bangalore; Editing by Don Sebastian