Jury Ordered Cisco To Pay $70 Million Over Patent Fraud

In a lawsuit filed in the U.S. District Court of Delaware, the jury found network equipment maker Cisco guilty of fraudulently obtaining technology from a New York company named XpertUniverse. The jury ruled that Cisco must pay $70 million in damages to XpertUniverse for the fraudulent dealings. Cisco has to pay an additional $34,000 for violating two of XpertUniverse’s patents.


XpertUniverse accused Cisco of violating a non-disclosure agreement between the two companies and also of filing patents for technology developed by the former.

In 2004, Cisco approached XpertUniverse and entered into a relationship to distribute technology developed by the latter to match customers to call center agents. The two companies worked together until 2007. On 2008, Cisco launched “Expert on Demand” which uses similar technology developed by XpertUniverse. In 2009, XpertUniverse filed a lawsuit in the U.S. District Court of Delaware.

XpertUniverse Attorney Charles Cantine said the company was “obviously very happy” with the verdict. However, Cisco has expressed its discontent with the verdict and “said it would appeal if the judge leaves the jury verdict intact.”

Source: Reuters

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