Menu
Arista will pay Cisco $400M to resolve court fight

Arista will pay Cisco $400M to resolve court fight

Settlement "demonstrates their commitment to the principles of IP protection"

Credit: Dreamstime

Arista Networks will pay US$400 million to Cisco to resolve a U.S. court fight between the two network equipment makers.

The news was revealed by Arista in a regulatory filing, on the same day a jury trial in the dispute was scheduled to begin, with the settlement resolving U.S. lawsuits filed by Cisco alleging the industry rival copied its intellectual property.

Furthermore, the deal also called for Arista to drop a lawsuit alleging Cisco engaged in anticompetitive conduct to preserve its dominant share of the ethernet switch market - the jury trial in that case was to have started on Monday in San Jose, California.

The companies said in a joint statement that the settlement "demonstrates their commitment to the principles of IP protection."

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 centres.

Cisco sued Arista in 2014, alleging it brazenly 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 U.S. International Trade Commission ruled in 2016 that Arista infringed three patents and recommended a limited ban on Arista’s products that infringe the patents.

Arista said that in an effort to comply with the ITC’s ruling it redesigned its technology to remove elements found to infringe Cisco's patents.

Arista scored a major victory of its own in 2016, when a U.S. jury said it owed no damages over Cisco’s claims of copyright infringement.

The settlement came shortly before a trial in a 2016 antitrust lawsuit filed by Arista - it alleged Cisco permitted rivals to use its interface technology and then later, after they were locked into using it, claimed copyright protection on it.

Cisco denied the allegations in court filings, saying it never encouraged Arista to adopt its technology and that it acted reasonably in suing for copyright infringement.

The companies said in the joint statement that "with limited exceptions, no new litigation will be brought over patents or copyrights related to existing products, for five years."

The settlement does not resolve Cisco's appeal of the 2016 verdict that Arista was not liable for damages under U.S. copyright law.

A federal appeals court heard arguments relating to those claims in June and likely will issue a ruling later this year.

(Reporting by Jan Wolfe; Editing by Bill Berkrot and Bill Trott)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags ciscoArista Networks

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments