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US Court of Appeals for Federal Circuit Confirms Finding that Apple Infringes WiLAN Patents

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The United States Court of Appeals for the Federal Circuit (CAFC) ruled favorably for Wi-LAN Inc., a subsidiary of Quarterhill (TSX: QTRH, OTCQX: QTRHF), regarding its patent infringement case against Apple. The CAFC confirmed that Apple infringes Wi-LAN's patents and is liable for damages. Additionally, the CAFC reversed a District Court's ruling that excluded Intel-based Apple products from damages calculations, allowing for their inclusion. The case has been remanded for a new trial to determine the amount of damages owed by Apple.

Positive
  • Court ruling favors Wi-LAN regarding patent infringement against Apple.
  • Intel-based Apple products included in damages calculations.
  • CAFC confirms the validity of Wi-LAN's patents.
Negative
  • CAFC ruled against Wi-LAN on some damage calculation assumptions, requiring a new trial.

Case Sent Back to District Court for Further Damages Award Determination

OTTAWA, ON, Feb. 4, 2022 /PRNewswire/ - Wi-LAN Inc. ("WiLAN"), a Quarterhill Inc. ("Quarterhill") company (TSX: QTRH) (OTCQX: QTRHF), today provided an update on ongoing litigation.

In a decision issued today by the United States Court of Appeals for the Federal Circuit (the "CAFC"), the three-judge panel ruled in WiLAN's favour regarding several of WiLAN's arguments.  First, the CAFC agreed with WiLAN's claim construction arguments relating to the patents-in-suit.  Second, the CAFC ruled in WiLAN's favour with respect to WiLAN's infringement related arguments.  Notably, Apple did not appeal the lower court's decision that WiLAN's patents are valid over the prior art.  With these two rulings today, the CAFC has conclusively decided that Apple infringes the patents-in-suit and is liable to pay damages to WiLAN. 

In addition, the CAFC also ruled in WiLAN's favour regarding a prior license agreement between Intel Corp. and WiLAN.  This prior license was dealt with in a summary judgment of non-infringement decision previously issued by the United States District Court of the Southern District of California (the "District Court") from which this appeal was being heard.  In that summary judgment ruling, the District Court had ruled that Apple products using Intel wireless chips should be excluded from the damages calculations that were awarded to WiLAN.  In its ruling today, the CAFC disagreed with that District Court decision and instead agreed with WiLAN's position, making Intel-based Apple products available for inclusion in a final damages award. 

Finally, the CAFC ruled against WiLAN with respect to certain assumptions made by WiLAN's damages expert in calculating the damages amount that was presented to the jury.  As a result, the CAFC has remanded the case back to the District Court for another trial focusing on the amount of damages that Apple will be required to pay.

"Overall, we see the CAFC decision as favourable to WiLAN and consistent with the arguments heard at Oral Argument," said Michael Vladescu, President and CEO of WiLAN.  "We remain committed and focused on advocating our positions which we believe are fair and balanced.  At the same time, we always remain open to resolving any litigation disputes through reasonable negotiated solutions."

About WiLAN
WiLAN, a Quarterhill company, is one of the most successful patent monetization companies in the world and partners with its customers to unlock the value of intellectual property through various patent monetization models.  WiLAN operates in a variety of markets including automotive, digital television, Internet, medical, semiconductor and wireless communication technologies.  For more information:  www.wilan.com.

About Quarterhill
Quarterhill is a leading provider of tolling and enforcement solutions in the Intelligent Transportation System (ITS) industry, as well as, through its Wi-LAN Inc. subsidiary, a leader in Intellectual Property licensing. Our goal is global leadership in ITS, via organic growth of the Electronic Transaction Consultants, LLC (ETC) and International Road Dynamics, Inc. (IRD) platforms, and by continuing an acquisition-oriented investment strategy that capitalizes on attractive growth opportunities within ITS and its adjacent markets. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com 

All trademarks and brands mentioned in this release are the property of their respective owners.

Cision View original content:https://www.prnewswire.com/news-releases/us-court-of-appeals-for-federal-circuit-confirms-finding-that-apple-infringes-wilan-patents-301475859.html

SOURCE Quarterhill Inc.

FAQ

What was the outcome of the appeal for Wi-LAN against Apple?

The CAFC ruled in favor of Wi-LAN, confirming that Apple infringes its patents and is liable for damages.

How does the CAFC ruling affect Apple products using Intel chips?

The CAFC's ruling includes Intel-based Apple products in the damages calculations that Wi-LAN can claim.

What are the next steps following the CAFC ruling for Wi-LAN?

The case has been remanded back to the District Court for a new trial to determine the amount of damages Apple must pay.

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