Wi-LAN Inc.

Wi-LAN Inc.

January 19, 2010 17:17 ET

WiLAN Initiates Fraud and V-Chip Patent Litigation Against LG

OTTAWA, ONTARIO, CANADA--(Marketwire - Jan. 19, 2010) - Wi-LAN Inc. ("WiLAN" or the "Company") (TSX:WIN), a leading technology innovation and licensing company, announced today that the Company has initiated litigation in the U.S. District Court Southern District of New York against LG Electronics, Inc., a Korean corporation and LG Electronics U.S.A., Inc., a Delaware corporation (collectively, iLGî). WiLAN's claim is for fraud and breach of contract, relating to LG's failure to pay WiLAN in accordance with a previously signed license agreement, and for infringement of WiLAN's patented V-Chip technology.

WiLAN's V-Chip technology, invented by Professor Tim Collings in 1991 as disclosed in U.S. Patent No 5,828,402 (the "402 patent"), provides television viewers with the ability to block content that they consider inappropriate. V-Chip technology was legislated by the United States federal government under former U.S. President Bill Clinton in 1996. WiLAN's predecessors, Tri-Vision International Corp. and Tri-Vision Electronics Inc. (collectively, "Tri-Vision") began licensing V-Chip technology to TV manufacturers in 1999. WiLAN acquired Tri-Vision in 2007 to bring additional resources and expertise to licensing this valuable technology. At present, over 110 companies and millions of V-Chip-enabled TVs and digital TV receivers sold each year in the United States and Canada are licensed under WiLAN's patented V-Chip technology. In the United States, the Federal Communications Commission (FCC) has mandated that certain functionality associated with the V-Chip technology be included in certain digital TV sets and digital television receivers (DVD players, PVRs) that are sold without an associated display.

WiLAN is represented in this action by Townsend and Townsend and Crew LLP ("Townsend") and Grais & Ellsworth LLP ("Grais & Ellsworth"). Townsend specializes in patent-related litigation and has more than 200 lawyers and legal professionals, many with advanced technical degrees and extensive scientific and business experience. Headquartered in San Francisco, Townsend has additional offices in Palo Alto, Walnut Creek, San Diego, Seattle, Denver, Washington, D.C. and Tokyo. Grais & Ellsworth is a leading litigation boutique in New York City. Its practice spans a range of complex disputes in areas including intellectual property matters.

WiLAN has recently learned that a third party law firm filed a request for re-examination of the 402 patent in the United States Patent and Trademark Office (USPTO). According to USPTO rules, it is not likely to make a decision on whether to grant this re-examination request for several months. WiLAN does not know the identity of the real party in interest who made this re-examination request.

About WiLAN

WiLAN, founded in 1992, is a leading technology innovation and licensing company. WiLAN has licensed its intellectual property to over 210 companies worldwide. Inventions in our portfolio have been licensed by companies that manufacture or sell a wide range of communication and consumer electronics products including 3G cellular handsets, Wi-Fi-enabled laptops, Wi-Fi/DSL routers, xDSL infrastructure equipment, WiMAX base stations and V-Chip-enabled digital television receivers. WiLAN has a large and growing portfolio of more than 750 issued or pending patents. For more information: www.wilan.com.

Forward-looking Information

Certain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties that face the Company; such statements may contain such words as "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, and may be based on management's current assumptions and expectations related to all aspects of the wireless and wireline telecommunications industries and the global economy. Risks and uncertainties that may face the Company include, but are not restricted to: licensing of the Company's patents can take an extremely long time and may be subject to variable cycles; the Company is currently reliant on licensees paying royalties under existing licensing agreements and additional licensing of its patent portfolio to generate future revenues and increased cash flows; the Company may be required to establish the enforceability of its patents in court in order to obtain material licensing revenues; changes in patent laws or in the interpretation or application of patent laws could materially adversely affect the Company; a court may determine that certain of the Company's patents are not infringed by certain standards or products or may disagree with management with respect to whether one or more of the Company's patents apply to certain standards or products, which could adversely affect the Company; the Company will need to acquire or develop new patents to continue and grow its business; fluctuations in foreign exchange rates impact and may continue to impact the Company's revenues and operating expenses, potentially adversely affecting financial results; the Company has made and may make acquisitions of technologies or businesses which could materially adversely affect the Company; the Company may require investment to translate its intellectual property position into sustainable profit in the market; the generation of future V-chip revenues and the likelihood of the Company signing additional V-chip licenses could be negatively impacted by changes in government regulation; the Company is dependent on its key officers and employees; the price of the Company's common shares is volatile and subject to market fluctuation; and the Company may be negatively affected by reduced consumer spending due to the uncertainty of economic and geopolitical conditions.
These risks and uncertainties may cause actual results to differ from information contained in this release, when estimates and assumptions have been used to measure and report results. There can be no assurance that any statements of forward-looking information contained in this release will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral statements containing forward-looking information are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by applicable laws, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. Readers are cautioned not to place undue reliance on any statements of forward looking information that speak only as of the date of this release. Additional information identifying risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in WiLAN's current Annual Information Form and its other filings with the various Canadian securities regulators which are available online at www.sedar.com.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States.

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

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