By The Canadian Press

OTTAWA - Shares in Wi-LAN Inc. (TSX:WIN.TO - News) dropped sharply Tuesday after the technology patent company said a U.S. appeal court ruled against it in a patent dispute.

The company says the appeal court affirmed a lower New York State court ruling that LG Electronics did not infringe on Wi-LAN's V-Chip patent.

Wi-LAN says it is "surprised and disappointed" by the decision and is reviewing its options.

Wi-LAN shares closed down 40 cents, or 8.16 per cent, to $4.50 on the Toronto Stock Exchange.

V-Chip enabled TVs and digital TV receivers allow owners to block objectionable content.

Wi-LAN licenses the rights to patents in its portfolio and earns money through royalty payments from companies that use the protected technology in their products and services.

Hopefully this too shall pass and we will win the next round of what appears to be a very long and grueling fight indeed.

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