LightSquared and Deere Settle GPS Spectrum Lawsuit
December 08 2015 - 5:20PM
Dow Jones News
LightSquared and Deere & Co. have settled a long-running
legal fight over whether the wireless venture's Global Positioning
System network interfered with global receivers made by the
farm-equipment manufacturer.
The new LightSquared, which emerged from bankruptcy Monday after
3 1/2 years under court protection, says the compromise with Deere
sets the parameters on how the GPS and broadband industries can
divvy up the spectrum, the limited pockets of airwaves that
mobile-phone and Internet companies use.
"This is a big step forward for us, and we believe this
agreement sets the framework that enables GPS and broadband to
peacefully coexist," said Doug Smith, LightSquared's chief
executive.
In 2013, Phil Falcone's Harbinger Capital, the hedge fund which
then controlled LightSquared, sued Deere and two other GPS
companies---Garrmin Ltd. and Trimble Navigation Ltd.---along with
industry groups in federal court claiming their equipment
interfered with the LightSquared network.
Under its deal with Deere, LightSquared has agreed to forgo a
portion of its spectrum nearest to the GPS signal and instead will
use frequencies that are further away from the GPS signal. In
return, Deere said it won't object to LightSquared's deployment of
its wireless broadband network.
Resolving its lingering disputes with the GPS industry is key
for the new LightSquared, free from bankruptcy and under new
management, to roll out its plan for low-cost mobile wireless
services to hundreds of millions of Americans.
Trimble and Garmin, the two other GPS equipment makers sued by
LightSquared, aren't part of the Deere settlement. However, talks
continue and Mr. Smith said the Deere settlement provides a
framework for peace with the GPS industry.
Representatives for Deere, Trimble and Garmin couldn't
immediately be reached for comment.
Harbinger, formerly LightSquared's biggest backer, also sued the
U.S. government over the Federal Communications Commission's
decision to stop LightSquared from deploying its network. That
decision cost the hedge fund about $2 billion and resulted in
LightSquared's bankruptcy.
As part of LightSquared's exit from bankruptcy, the company's
new leadership—Mr. Smith, along with former Verizon Communications
Chief Executive Ivan Seidenberg and ex-FCC Chairman Reed
Hundt—control the litigation rights against both the GPS industry
and the U.S. government.
LightSquared filed for chapter 11 protection in May 2012,
shortly after federal regulators refused to clear LightSquared's
plans to launch its wireless network. Those regulators heeded
warnings from the GPS industry that LightSquared's network could
interfere with GPS.
Fortress Investment Group LLC, Centerbridge Partners and J.P.
Morgan & Chase Co. now share ownership in the reorganized
company. Mr. Falcone maintained a 44% stake in the company but no
longer has a say in the wireless spectrum venture's operations.
Write to Patrick Fitzgerald at patrick.fitzgerald@wsj.com
(END) Dow Jones Newswires
December 08, 2015 17:05 ET (22:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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