IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Cisco ordered to pay £1.46 billion in cyber security patent suit

Judge ruled that the tech giant had "inconsistencies" in its evidence against Centripetal Network's case

Cisco has been ordered to pay $1.9 billion (£1.46 billion) to a cyber security firm after a US district judge ruled it had infringed its patents. 

Judge Henry Morgan concluded after a month-long trial that Cisco infringed upon four out of five patents that belonged to Centripetal Networks, according to Reuters.

Virginia-based Centripetal was founded in 2009 and develops threat intelligence software and firewall hardware for cyber networks. The company took legal action against Cisco earlier this year and has successfully challenged the US tech giant. 

In a 167-page decision, Morgan said the case was "not a close call," pointing out inconsistencies in Cisco's evidence and within its own technical documents. Most of these were used by Centripetal during the trial. 

The massive payout reflects $755.8 million in damages suffered by Centripetal, which has been multiplied by 2.5 on account of "willful and egregious" conduct from Cisco. Add to that prejudgment interest and it leaves the final sum at $1.9 billion. 

With regards to the four patents it lost, Morgan said that Cisco did not "advance any objectively reasonable defenses at trial".

"The infringing functionality was added to their accused products post June 20, 2017, and resulted in a dramatic increase in sales which Cisco touted in both technical and marketing documents," Morgan wrote.

Cisco said it was disappointed with the decision and confirmed it plans to appeal: "Given the substantial evidence of non-infringement, invalidity and that Cisco's innovations predate the patents by many years."

In its latest fiscal year, Cisco posted $11.2 billion of net income from $49.3 billion of revenue. 

"With this judgment, the court rejected the primitive doctrine that might makes right," Paul Andre, a lawyer for Centripetal, said in a statement. "This is a significant win for all small, innovative companies."

Featured Resources

Four strategies for building a hybrid workplace that works

All indications are that the future of work is hybrid, if it's not here already

Free webinar

The digital marketer’s guide to contextual insights and trends

How to use contextual intelligence to uncover new insights and inform strategies

Free Download

Ransomware and Microsoft 365 for business

What you need to know about reducing ransomware risk

Free Download

Building a modern strategy for analytics and machine learning success

Turning into business value

Free Download

Recommended

Mastering endpoint security implementation
Security

Mastering endpoint security implementation

18 May 2022
The Total Economic Impact™ of Apple Mac in Enterprise: M1 update
Whitepaper

The Total Economic Impact™ of Apple Mac in Enterprise: M1 update

12 May 2022
Dell Technologies World 2022: Dell unveils fastest storage architecture in company history
Server & storage

Dell Technologies World 2022: Dell unveils fastest storage architecture in company history

4 May 2022
Dell Technologies World 2022: Dell unveils security offerings for major cloud providers
public cloud

Dell Technologies World 2022: Dell unveils security offerings for major cloud providers

3 May 2022

Most Popular

Russian hackers declare war on 10 countries after failed Eurovision DDoS attack
hacking

Russian hackers declare war on 10 countries after failed Eurovision DDoS attack

16 May 2022
16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

13 May 2022
Google Russia files for bankruptcy, ends operations in the country
Business operations

Google Russia files for bankruptcy, ends operations in the country

19 May 2022