Printed from http://www.electronista.com

Cisco, Motorola, Netgear pay off IP Ventures, settle for $2.7 million

updated 10:57 pm EST, Thu February 6, 2014

Patent troll sued end users of networking gear, settlement prevents further action

Networking hardware manufacturer Cisco has struck a deal with non-practicing entity Innovatio IP Ventures to settle a suit and protect commercial and potentially home users of its hardware. Together with Netgear and Motorola, have agreed to pay IP Ventures 3.2 cents for 85 million pieces of network gear, netting the patent troll $2.7 million.

Innovatio IP Ventures began suing coffee shops, grocery stores, restaurants and hotels for allegedly infringing upon patents in its owned portfolios. The company's strategy was to prey on franchises rather than parent companies, and offer the option of settling for between $2,300 and $5,000.

At the time of filing, the legal team handling the suits implied the patents covered everyone who has a home Wi-Fi setup. Motorola and Cisco took Innovatio IP to court, seeking a declaratory judgment that its Wi-Fi products do not infringe upon Innovatio's patents.

Cisco General Counsel Mark Chandler said of the deal that the company "spent $13 million on this litigation, not including the $2.7 million settlement. I'm proud that we stepped up for our customers and appreciate the great job that our counsel at Kirkland and Ellis did for us. 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 went on to criticize the state of the US patent laws. In short, the executive believes that there should be "provisions requiring those who target innocent third-party users of products to register their claims at the FTC" as well as potentially be on the hook for legal fees of the accused if the case is lost.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

  1. hayesk

    Professional Poster

    Joined: 09-17-99

    And this, ladies and gentlemen, are why we still have patent trolls. When the big guys won't fight 'em, who will?

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Cat B100

Cat is primarily known for its heavy-duty machinery used in the construction industry and farming, among other areas. What may not be ...

Linksys EA6900 AC Router

As AC networking begins to makes its way into more and more devices you may find yourself considering an upgrade for your home network ...

D-Link DIR-510L 802.11AC travel router

Having Internet access in hotels and other similar locations used to be a miasma of connectivity issues. If Wi-Fi was available, it wa ...

Sponsor

toggle

Most Commented

 
toggle

Popular News