Mosaid gets into WiFi patent game, sues 17 companies including Dell, Canon, Asus, and RIM

Tim Stevens
T. Stevens|03.18.11

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Mosaid gets into WiFi patent game, sues 17 companies including Dell, Canon, Asus, and RIM
Whether or not you agree with their tactics, lots of companies are finding it quite lucrative business to spend more time in the courts than in the research labs. CSIRO got some tasty settlements back in 2009, while just a few months ago Wi-LAN received "a significant amount" in a settlement from Intel. Now it's Mosaid's turn, a Kanata, Ontario-based company that bills itself as "one of the world's leading intellectual property (IP) companies, focused on the licensing and development of semiconductor and communications technologies." Indeed it just licensed some of those properties to LG on the 15th, but the very next day it filed suit against a 17 defendants for infringing on six of the company's patents, relating to network discovery, multiplexing, and other wireless techniques. Among those companies is RIM; which has its Torch, Style, Curve, Pearl, Bold, Storm handsets called out; and Asus, which has a long line of motherboards, routers, and other products said to be in jeopardy. As ever it's hard to draw the line between the patent trolls and the legitimately infringed, but that the lawsuit was filed in litigation-friendly Marshall, Texas doesn't leave us with a particularly good feeling.

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MOSAID Files Wireless Patent Infringement Litigation
OTTAWA, Ontario – March 17, 2011 - MOSAID Technologies Inc. (TSX:MSD) today announced that it has initiated wireless patent infringement litigation against the following companies: AsusTek Computer Inc.; Atheros Communications, Inc.; Canon U.S.A., Inc.; CSR plc; Dell, Inc.; Digi International Inc.; Huawei Technologies Co., Ltd.; Intel Corporation; Lexmark International, Inc.; Marvell Semiconductor, Inc.; Murata Manufacturing Co., Ltd.; Ralink Technology Corporation; Realtek Semiconductor; Research in Motion Corporation; Wasp Barcode Technologies, Ltd.; Wistron Corporation; and Venture Research, Inc. The suit was filed on March 16, 2011 in the United States District Court for the Eastern District of Texas, Marshall Division.

MOSAID believes that the companies have infringed and continue to infringe MOSAID's patents by making and selling products that comply with or implement the IEEE 802.11 family of communications standards, known as Wi-Fi. The standards-essential patents in suit are MOSAID's U.S. Patent Nos. 5,131,006; 5,151,920; 5,422,887; 5,706,428; 6,563,786 B1; and 6,992,972.

"Since 2008, we have licensed our portfolio of wireless patents and applications to 15 companies that have recognized the value of this intellectual property," said John Lindgren, President and CEO, MOSAID. "We believe that all companies offering products that implement the Wi-Fi standard require a license to our wireless patents."

MOSAID Technologies Inc. is one of the world's leading intellectual property companies. MOSAID develops semiconductor memory technology and licenses patented intellectual property in the areas of semiconductors and telecommunications systems. MOSAID counts many of the world's largest technology companies among its licensees. Founded in 1975, MOSAID is based in Ottawa, Ontario. For more information, visit and the

Forward Looking Information
This document and certain other public documents incorporated by reference in this document, contain forward-looking statements to the extent they relate to MOSAID or its management, including those identified by the expressions "anticipate," "believe," "foresee," "estimate," "expect," "intend," "could," "may," "plan," "will," "would" and similar expressions. Similarly, statements in this document that describe MOSAID's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. These forward-looking statements are not historical facts, but rather reflect MOSAID's current expectations regarding future events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially from those in such forward-looking statements. Assumptions made in preparing forward-looking statements and financial guidance include, but are not limited to, the following: MOSAID's continued expansion of its patent portfolio and of its opportunities for future patent licensing revenue as a result of MOSAID's acquisition of patents from third parties and from development of new inventions; DRAM manufacturers continuing to infringe MOSAID's patents; the timing and amount of MOSAID's litigation expenses; MOSAID's ability to sign new patent licensees; current assumptions as to the identification of products that are unlicensed to MOSAID's wireless patents; and the timing and amount of MOSAID's Research & Development expenses.

Factors that could cause actual results to differ materially from expected results include, but are not limited to, the following: MOSAID's ability to negotiate settlements with licensees; legal rulings and/or regulatory investigations, audits or complaints having an adverse impact on the validity, enforceability, royalty rates, potential royalty rates, and strength or breadth of coverage of MOSAID's essential and/or nonessential patents (including, but not limited to, adverse results from litigation or proceedings in patent offices and government regulatory agencies in various countries around the world); judicial, legislative or regulatory changes that impair the ability of patent holders to earn licensing revenues; worldwide economic conditions and demand for technology products; economic, social, and political conditions both globally and in the countries in which MOSAID or patent licensees operate, including conflict, war and, other security risks, health conditions, possible disruptions in transportation networks and fluctuations in foreign currency exchange rates; non-payment or delays in payment by or insolvency of licensees or other debtors; variability in patent licensees' sales of licensed products; failure to maintain and enforce MOSAID's existing patent portfolio, or failure to obtain valuable patents as a result of R&D activities, or failure to acquire valuable patents from third parties; MOSAID's ability to recruit and retain skilled personnel; change in MOSAID's financial position; consolidation of MOSAID's licensees; natural events, such as severe weather and earthquakes in the locations in which MOSAID or patent licensees operate; and changes in the tax rate applicable to MOSAID as the result of changes in the tax law in the jurisdictions in which profits are determined to be earned and taxed, the outcome of tax audits and the ability to realize deferred tax assets.

Except as may be required by applicable law or stock exchange regulation, we undertake no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Additional information identifying risks and uncertainties affecting MOSAID's business and other factors that could cause MOSAID's financial results to fluctuate are contained in MOSAID's Annual Information Form, under the section entitled "Risk Factors," and in MOSAID's other public filings available online at

The complete list of companies sued:
  • AsusTek Computer Inc.
  • Atheros Communications, Inc.
  • Canon U.S.A., Inc.
  • CSR plc
  • Dell, Inc.
  • Digi International Inc.
  • Huawei Technologies Co., Ltd.
  • Intel Corporation
  • Lexmark International, Inc.
  • Marvell Semiconductor, Inc.
  • Murata Manufacturing Co., Ltd.
  • Ralink Technology Corporation
  • Realtek Semiconductor
  • Research in Motion Corporation
  • Wasp Barcode Technologies, Ltd.
  • Wistron Corporation
  • Venture Research, Inc.
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