Arista Networks will pay US$400 million to Cisco Systems to resolve a US court fight between the two network equipment makers, Arista said in a regulatory filing on Monday, August 6, the day a jury trial in the dispute was scheduled to begin, reported Reuters.
The settlement resolved lawsuits filed by Cisco more than three years ago that alleged Arista Networks copied its intellectual property. Arista denied infringing Cisco’s patents, but had been modifying its networking software to resolve issues. The companies issued a joint statement that said: “with limited exceptions, no new litigation will be brought over patents or copyrights related to existing products, for five years.”
Founded in 2004 by former Cisco engineers, Arista has emerged as a rival to Cisco in the multibillion-dollar market for ethernet switches used in data centers.
Cisco sued Arista in 2014, alleging it copied software that runs switching products and other technology protected by patents and copyrights. Arista has denied the allegations and accused Cisco of a smear campaign intended to stifle competition.
The US International Trade Commission (ITC) ruled in 2016 that Arista infringed three patents and recommended a limited ban on Arista’s products that infringed the patents.
Arista stated that in an effort to comply with the ITC’s ruling, it redesigned its technology to remove elements found to infringe Cisco’s patents.
In related, but separate, litigation, Arista won a jury verdict in 2016 that it owed no damages to Cisco over copyright infringement. This ruling is still under appeal in a federal court and a resolution is expected later in the year.
Full Content: Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Geradin Partners Expands Paris Office with Key Hire
Aug 30, 2024 by
CPI
Judge Accuses Google of ‘Clear Abuse’ in Antitrust Case Over Deleted Employee Chats
Aug 29, 2024 by
CPI
Hong Kong Cleaning Company Employee Charged in Historic Antitrust Investigation Case
Aug 29, 2024 by
CPI
Inside the Yelp Suit: Allegations of Google’s Abuse of Search Power
Aug 29, 2024 by
CPI
AI Safety Bill Clears Hurdle in California, Heads to Governor’s Desk
Aug 29, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – State Attorneys General
Aug 22, 2024 by
CPI
CPI Talks… …With Attorney General Phil Weiser
Aug 22, 2024 by
CPI
The Bipartisan Miracle of State Antitrust Enforcement
Aug 22, 2024 by
Gwendolyn J. Lindsay Cooley
Recent Developments in State Antitrust Enforcement: Agriculture and Food Markets
Aug 22, 2024 by
Elizabeth R. Odette
State Attorneys General: Stewards of Consumer Health and Welfare
Aug 22, 2024 by
Brooke Howlett Lovrovich