More Than Meets the Eye in Alcatel Lucent SA , WiLAN License Agreement

Dallas, Texas, 09/20/2013 (ustrademedia) – After dropping $0.02 (-.0.58%) to stand at $3.43 in the New York Stock Exchange, Alcatel Lucent SA (ADR) (NYSE:ALU) has truck what market observers term a “lucrative” license agreement deal with WiLAN. But there could be more into this deal than what the naked eye can see. What is emerging is a clear litigation settlement.

Alcatel Lucent SA and WiLAN have had long standing patent litigation issues and now the new deal means that all have been settled and new patent license seal reached.

In the new deal of patent license agreement, Alcatel Lucent SA has been granted WiLAN’s patent license on certain products, more so wireless. The agreement spells out that in the patent license deal, WiLAN will receive payments – a series of them – for the period the agreement remains in effect.

Analysts say that Alcatel Lucent SA would pay “significant billions” to WiLAN in the multi-year patent deal. But Alcatel Lucent SA is speculated to be the main gainer in the agreement announced Sept 18.

The two firms have also settled all the pending litigations is what observers see as attempts by the parties to put to rest the previous feuds.

The WiLAN-Alcatel Lucent SA legal disputes involved featured in Eastern District of Texas and Southern District of Florida and involved technology patents for Wi-FI, LTE, CDMA, 3GPP and HSPA.

Separately, WiLAN has successfully negotiated a portfolio patent agreement with Alcatel Lucent SA in which it will a gain patent to next-generation technologies in wireless market. The details remaining to this latter agreement are still scant as the two parties described them “confidential.”

These patent agreements were announced by WiLAN CEO and President Jim Skippen. Major financial and market shifts are expected from both parties to the agreement in the coming months. However, broadly, analysts still speculate slide of Alcatel Lucent SA in the New York Stock Exchange.