Cisco Told to Pay $23.5 Million Over Hacker-Security Patents

Advertisement
By Jef Feeley and Christopher Yasiejko, Bloomberg | Updated: 13 May 2016 11:19 IST
Cisco Systems Inc., the biggest maker of networking equipment, was ordered by a jury to pay more than $23.5 million (roughly Rs. 156 crores) to a nonprofit research center for infringing network-surveillance patents designed to identify hacking attacks on computer systems.

Jurors in federal court in Wilmington, Delaware, concluded Thursday that San Jose, California-based Cisco used technology owned by SRI International, the former research arm of Stanford University, without permission. The panel rejected Cisco's arguments that it didn't infringe or that the two at-issue patents weren't valid.

Officials of Menlo Park, California-based SRI sought more than $50 million (roughly Rs. 333 crores) in damages for Cisco's unauthorized use of the patented technology, which allows computers to automatically detect and record suspicious activity on networks.

Cisco officials were disappointed with the jury's finding that the networking company's products infringed SRI's patented technology, Robyn Blum, a company spokeswoman, said in an e-mailed statement.

Advertisement

"Cisco's technology was independently developed by highly-regarded industry innovators, and we see several grounds for appeal that will be pursued," she said.

Advertisement

The case focused on whether sensors created by Cisco to detect suspicious computer traffic incorporated SRI's patented technology without its permission. Companies such as Home Depot Inc. and TransUnion, a provider of consumer-credit reports, use Cisco's surveillance system, according to court testimony.

SRI's lawyer told jurors in closing arguments Wednesday that Cisco's system for tracking computer-network intrusions wrongfully incorporated SRI's technology and the company encouraged its customers' unauthorized use of SRI's invention.

Advertisement

"Cisco instructs, guides and encourages its customers' infringement," Frank Scherkenbach, a lawyer for the research center, told the panel. SRI developed things such as the computer mouse and SIRI, a personal-assistance program on Apple Inc.'s IPhones.

Cisco's attorney countered that SRI failed to prove the networking company infringed on its technology and didn't deserve a damages award. SRI contends it deserves damages in the form of reasonable royalties for Cisco's use of its inventions without permission.

Advertisement

"This is not even a close case" of infringement, Steven Cherny, Cisco's lawyer, said in closing arguments.

© 2016 Bloomberg L.P.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Cisco, Internet, SRI
Advertisement

Related Stories

Popular Mobile Brands
  1. Nothing Phone 4a Series Tipped to Launch Globally on This Date
  2. Philips Launches New Soundbars, Speakers and Headphones in India
  3. iQOO 15R Battery Capacity, Thickness Announced by Company
  4. How to Reset Your Instagram Reels Algorithm
  5. Infinix Note 60, Note 60 Pro, Note 60 Ultra May Be Sold in These Variants
  6. Motorola Razr 70 Could Launch Soon as Foldable Phone Visits TDRA Database
  7. Google Might Be Making It Hassle-Free to Switch From ChatGPT to Gemini
  8. OpenAI Introduces Codex App With Agentic Coding for macOS
  1. Scientists Track Rapidly Growing Sunspot Behind Intense Solar Storms Toward Earth
  2. Motorola Razr 70 Global Launch Seems Imminent as Foldable Phone Visits UAE’s TDRA Certification Database
  3. Crypto Wrench Attacks Surged in 2025, Total Recorded Losses Hit $41 Million: Report
  4. Philips TAA1009 In-Ear, SHP9500 Headphones Launched in India Alongside New Soundbar, Speaker Models
  5. Supreme Court Questions WhatsApp Policy of Sharing User Data With Meta Entities
  6. Nintendo Switch Becomes Best-Selling Nintendo Console Ever; Switch 2 Sales Cross 17 Million Units
  7. NASA’s Perseverance Makes History on Mars with Claude AI at the Helm
  8. Redmi K90 Ultra Tipped to Launch With Dimensity 9500 Chip, Active Cooling Fan
  9. Mozilla Firefox Will Let You Decide How Much AI You Want in Your Browser
  10. Oppo Find X10 Pro Will Launch With Two 200-Megapixel Rear Cameras, Tipster Claims
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.