Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

Cisco reaches agreement with Innovatio over Wi-Fi patents

Cisco said it settled to protect its customers who were targeted by the patent firm

Article comments

Cisco Systems has come to an agreement with patent firm Innovatio IP Ventures in a dispute over Wi-Fi standards-essential patents that targeted its customers.

Under the settlement, Cisco will pay US$2.7 million to protect customers of 170 million Cisco devices. Innovatio admitted that over 100 million of the accused devices were already licensed, and agreed to be paid about 3.2 cents per wireless device for the remaining 85 million, Cisco's general counsel Mark Chandler wrote in a blog post on Thursday.

Cisco and Innovatio have in a filing on Thursday in the U.S. District Court for the Northern District of Illinois, Eastern Division asked that claims and counterclaims in two lawsuits before the court between the two companies should be dismissed "with prejudice to the re-filing of same," which would mean that Innovatio may not sue Cisco on the same claims. The parties also asked the court to dismiss all claims made by Innovatio against Cisco customers in the dispute.

Innovatio sued coffee shops, hotels, restaurants, supermarkets, large retailers, transportation companies, and other commercial users of wireless Internet technology in the U.S., according to court records. The company alleged that the wireless network users provide wireless Internet access to their customers or use it to manage internal processes, and by doing so infringe various claims of 23 patents it owned.

The makers of the gear used by the wireless network providers - Cisco, Motorola Solutions, SonicWall, Netgear and Hewlett-Packard - asked the court to rule that their products, and the networks or systems of which those products are a part, do not infringe Innovatio's patents, and that its patents are invalid.

In a ruling in October, District Judge James F. Holderman observed that the previous owners of all of Innovatio's patents contractually agreed with the IEEE to license on reasonable and non-discriminatory (RAND) terms any patents that were essential to the operation of the 802.11 wireless standard.

The judge determined that the RAND rate to be paid to Innovatio for licensing its portfolio of 19 standards-essential patents relating to the 802.11 standard was 9.56 cents for each Wi-Fi chip used or sold by the U.S. manufacturers. Four other patents were not considered in the proceeding to determine a RAND rate by consent of the parties.

Innovatio's attorney could not be immediately reached for comment.

Motorola and SonicWall had settled with Innovatio in the fourth quarter of last year.

Cisco said it spent $13 million on the litigation, not including the settlement amount. "But that expenditure would not have been necessary if Innovatio had met its obligations to license on reasonable and non-discriminatory terms, and had come to Cisco seeking a reasonable license first rather than targeting our customers and those of other manufacturers," Chandler wrote. He supported current legislation that passed recently in the U.S. House of Representatives, and would, among other things, make it difficult for users of products to be targeted.

Cisco has this week signed patent cross-licensing deals with Samsung and Google.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *