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. Motorola Edge 70 Ultra Camera Configuration, Other Key Features Leaked
  2. The Rookie Season 7 OTT Release Date: When and Where to Watch it Online?
  3. Nothing Phone 4a Series Price and Key Specs Tipped
  4. Tomb Raider, Star Wars, Divinity: Everything Announced at The Game Awards
  5. WhatsApp Brings a Voicemail-like Feature for Missed Voice and Video Calls
  1. Astronomers Observe Star’s Wobbling Orbit, Confirming Einstein’s Frame-Dragging
  2. Galaxy Collisions Found to Activate Supermassive Black Holes, Euclid Data Shows
  3. JWST Detects Oldest Supernova Ever Seen, Linked to GRB 250314A
  4. Chandra’s New X-Ray Mapping Exposes the Invisible Engines Powering Galaxy Clusters
  5. Blue Origin to Fly First Wheelchair User to Space on New Shepard NS-37
  6. Chandra’s New X-Ray Mapping Exposes the Invisible Engines Powering Galaxy Clusters
  7. Sasivadane Now Streaming on Amazon Prime Video: Everything You Need to Know
  8. Kuttram Purindhavan Now Streaming Online: What You Need to Know?
  9. Lyne Lancer 19 Pro With 2.01-Inch Display, SpO2 Monitoring Launched in India
  10. OpenAI and Disney Reach Licensing Agreement to Bring Its Characters to the Sora App
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.