Cisco awarded patent infringement in the United States: 1.9 billion US dollars in damages


A U.S. judge on Monday ordered Cisco to pay $1.9 billion in damages to a company in Virginia, which accused Cisco of plagiarizing its network security patents.
After a month of jury free trial, Henry Morgan, a U.S. district judge in Norfolk, Va., ruled that Cisco had infringed four patents of centripetal networks, a privately held company in Virginia, but not another.
In a 167 page judgment, Morgan said the case was “not a fluke” for Cisco, pointing out that the evidence provided by the company was inconsistent and that its own technical documents “support the lawsuit initiated by centripetal”.
Cisco was ordered to pay $1.89 billion in damages, reflecting centripetal’s actual damage of $755.8 million, multiplied by 2.5 to reflect Cisco’s “deliberate and bad” behavior, plus pre judgment interest.
Morgan wrote in the judgment that “Cisco did not present any objective and reasonable defense in the trial” for the above four patents. “Infringing features were added to the alleged Cisco products after June 20, 2017, which led to a significant increase in sales, which Cisco boasted in both technical and marketing documents,” he added
Cisco, which has not responded to requests for comment, said in a regulatory filing filed Sept. 3 that it would appeal any adverse judgment to the U.S. Court of Appeals for the federal circuit. Cisco last fiscal year had revenue of $49.3 billion and net profit of $11.2 billion.
Founded in 2009, centripetal focuses on the use of threat intelligence software and firewall hardware to protect network security. “This is a major victory for all small innovative companies,” Paul Andre, the company’s lawyer, said in a statement