Daily Management Review

Cisco Receives A Favourable Judgement


12/30/2015


The eight year long litigation drew to a close as federal appeal court ruled out Commil’s charges against Cisco’s infringement into wifi technology



Cisco Receives A Favourable Judgement
On Monday, the court ruled out a “U.S. appeals” stating the Cisco Systems Inc. did not “infringe a patent holding” on company’s “wifi technology”. Likewise, an equivalent judgment of “$64-million” held against the “networking equipment maker in the long-running patent dispute” was reversed in the process.
 
The litigation lasted over eight years, whereby Cisco had to visit the “U.S. Supreme Court” once, the judgement coming from the “U.S. Court of Appeals for the Federal Circuit” pleaded Cisco innocent, whereby the liability of “directly infringing or inducing others to infringe a patent held by Commil USA LLC” does not lie with Cisco.
 
Expressing his gratitude on the company’s behalf, the “General Counsel” of Cisco, “Mark Chandler” stated in an email:
"The patent never had anything to do with our products and the millions of dollars spent defending this unmeritorious suit are a travesty”.
 
However, the Commil’s representative remained unavailable for any comments. Commil USA was the one to sue Cisco in the year of 2007. Commil is based out of Texas, while the court documents reveal that Commil bought the “patent from an Israeli company, Commil Ltd”.
 
In Cisco’s words, Commil is a “non-practicing entity” meaning, a company that “primarily” earns “by licensing patents instead of making products”.
 
According to a “federal jury” of Texas, Cisco was found guilty of “infringement”, whereby it encouraged “its customers to use Cisco products that infringe Commil's patent”. As a result, Cisco was to pay Commil “almost $63.8 million” as damage charges, while a judge also added an interest amount of “$10.3 million” to the previous figures.
 
Moreover, the “Washington, D.C.-based Federal Circuit” being the “top appeals court” in the nation that specialises in “patent issues”, asked for a “new trial” in the year of 2013. The court states that it was possible for Cisco to “mount a defense” on the basis of the company’s “good faith belief” whereby declaring “Commil's patent” as invalid.
 
Nevertheless, in the month of May 2015, the Supreme Court issued judgement in favour of the prosecution, whereby declaring the defence “not legitimate”, while “throwing out the ruling”. Subsequently, the case was sent back to the “Federal Circuit”.
 
Eventually, on the 28th of December 2015, a Federal Circuit made up of three judge panel “ruled in favor of San Jose, California-based Cisco”. In the panel’s view:
“...when it last considered the case, it did not consider some of Cisco's arguments that it did not infringe the patent. In weighing those arguments this time, the panel said that ‘substantial evidence did not support the jury's findings’.” 







References:
http://www.reuters.com/
 







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