PHILIPS SEMICONDUCTORS LICENSES Wi-LAN'S PATENTED W-OFDM TECHNOLOGY
Agreement allows Philips Semiconductors to develop, modify, make and sell W-OFDM application specific integrated circuits for the emerging IEEE802.11a standard
Calgary, Alberta, Canada (September 22, 1999) - Wi-LAN Inc. (ASE:WIN), a leading innovator in the growing wireless Internet/data communications sector and Philips Semiconductors, a subsidiary of Philips Electronics North America Corporation (NYSE:PHG), today announced the signing of a definitive licensing agreement.
Under terms of the agreement, Wi-LAN (www.wi-lan.com) will share its W-OFDM technology and expertise with Philips Semiconductors for a one-time licensing fee and future royalty payments based upon the volume of integrated circuits shipped. Additionally, Philips Semiconductors receives one year of exclusive access for their own use to Wi-LAN's W-OFDM intellectual property for the large volume consumer electronics market. Under the terms of the agreement, Wi-LAN maintains the right to license its patented technology to companies not directly competing with Philips Semiconductors. During the same period, Philips Semiconductors will not develop products using wireless W-OFDM technology with any other party than Wi-LAN. Due to the competitive nature of the industry, financial terms of the deal will not be disclosed.
In July 1998, the Institute of Electrical and Electronics Engineering (IEEE) selected OFDM technology as the draft standard - 802.11a - for Local Area Network applications. In response to this draft standard, Wi-LAN agreed to license its patented W-OFDM technology to a variety of interested parties including chipmakers and equipment manufacturers. W-OFDM is Wi-LAN's variation of OFDM that further improves its characteristics, including allowing greater transmission speeds. Today's announcement marks the first license agreement of W-OFDM technology for the emerging IEEE 802.11a standard. Furthermore, this license agreement is the first step towards the manufacturing of low cost W-OFDM products.
"Our first patent licensing and development agreement is a major step for our company," said Dr. Hatim Zaghloul, Chairman and CEO of Wi-LAN Inc. "Wi-LAN has needed a larger partner that can help it in the production of integrated circuits. These integrated circuits could help in realizing our goal of seeing W-OFDM in every high-speed communications device.
"With this agreement, Wi-LAN receives semiconductor chips as well as revenue from the consumer electronic market. We are excited to be working closely with Philips Semiconductors for their technological leadership, vertical integration and market penetration."
Both companies will collaborate on developing proprietary W-OFDM integrated circuits based on Wi-LAN's I.WiLLTM product, which was unveiled by Wi-LAN in June of this year. Through this collaboration Wi-LAN and Philips Semiconductors look to lower the cost of the customer premise equipment, currently in final development stages at Wi-LAN. Additionally, the companies will collaborate on building integrated circuits around the IEEE 802.11a draft standard. Philips will use the circuits for its consumer electronics products while Wi-LAN will use it for its Internet wireless local loop business. The chips will also be available for sale to interested companies. Both Wi-LAN and Philips Semiconductors agreed to work together to further drive standards based on W-OFDM.
"This agreement cements a multifaceted working relationship with Wi-LAN to support our efforts in the wireless arena," said Phil Pollok, VP/Business Line-Interconnectivity Philips Semiconductors. "The integration of Wi-LAN technology represents an important step in bringing cost effective, high speed wireless data connectivity to consumer electronic applications. This licensing agreement comes on the heels of Philips Semiconductors recent demonstration of wireless transmission using IEEE 1394, which took place at Internationale Funkausstellung (IFA) 1999 Aug. 28-Sept. 3 at the Hotel Berlin." This demonstration featured an MPEG-2 data stream generator that fed a multiple transport stream into a Philips Semiconductors Set Top Box (STB). This demonstration established W-OFDM as the most bandwidth-efficient wireless transmission technology and the only technology capable of providing data rates required to facilitate in-home multimedia networking.
Wi-LAN currently supplies its patented W-OFDM product to national networks for high-speed wireless Internet Access including telephone companies such as the national Swedish Telephone Company, Telia GlobalCast interworking ab, and RSL COM Canada, a wholly-owned subsidiary of RSL Communications Ltd. (NASDAQ:RSLC). It also serves large national Internet and Intranet service providers such as Tele2 UK Limited, a subsidiary of Millicom International (NASDAQ: MICCF), cable companies and regional school districts. Wi-LAN is currently proposing systems for various public high-speed wireless data networks worldwide.
About Philips Semiconductors
Philips Semiconductors, a subsidiary of Philips Electronics North America Corporation and an affiliate of Royal Philips Electronics, headquartered in Eindhoven, The Netherlands, is the eighth largest semiconductor supplier based on Dataquest's 1998 report.* Philips Semiconductors' innovations in digital audio, video, and mobile technology position the company as a leader in the consumer, multimedia and wireless communications markets. Sales offices are located in all major markets around the world and are supported by systems labs. Additional information on Philips Semiconductors can be found on the home page at www.semiconductors.philips.com or by calling 1-800-447-1500 ext. 1828.
About Wi-LAN
Wi-LAN Inc., based in Calgary, Alberta, Canada, delivers wireless data/Internet communications products that provide infrastructure and high-speed networking equipment for public and private wireless data networks. Wi-LAN's recently launched I.WiLLTM 30 Mbps access point is based on its patented W-OFDM technology and transmits data at unprecedented speeds in its industry class. The company's HopperTM and Hopper Plus products have been sold in more than 50 countries on six continents. Wi-LAN is the 1999 recipient of the CATA Alliance Award of Distinction for Emerging Technology. Wi-LANTM common shares trade on The Alberta Stock Exchange under the symbol "WIN". Detailed information on Wi-LAN can be found on the Web at wi-lan.com. |
