Cisco to pay up to $US112 million in Power-over-Ethernet patent case

The settlement calls for approximately $US32 million up front with up to approximately $US80 million in royalty payments from Cisco alone over the next nine years

Network-1 Security Solutions, an acquirer and licensor of intellectual property, says it has settled its Power-over-Ethernet    patent infringement case against Cisco and five other companies.

The litigation was initiated in February 2008 by Network-1 against Cisco and its Linksys division, Foundry Networks (now Brocade), Extreme Networks, Enterasys, 3Com (now HP), Adtran and Netgear. At issue was alleged infringement of Network-1's Remote Power Patent, U.S. Patent No. 6,218,930.

FAKE SIDE: Deploying next-gen Power-over-Ethernet networks

The case was heard in the U.S. District Court for the Eastern District of Texas, Tyler Division.

The settlement calls for approximately $32 million up front with up to approximately $80 million in royalty payments from Cisco alone over the next nine years. Adtran, Enterasys, Extreme and Foundry have also agreed to enter into non-exclusive licenses for the Remote Power Patent, according to Network-1.

Under the terms of the licenses, the companies agreed to pay to Network-1 an aggregate upfront payment of approximately $32 million and have also agreed to license the Remote Power Patent for its full term, which expires in March 2020.

In addition, Cisco agreed to pay royalties, beginning in 2011, based on its sales of PoE products up to maximum royalty payments per year of $8 million through 2015 and $9 million per year thereafter for the remaining term of the patent. The royalty payments are subject to certain conditions, including the continued validity of Network-1's Remote Power Patent -- the actual royalty amounts received may be less than the caps stated above, according to Network-1.

Cisco declined to comment.The settlement with 3Com provides for a dismissal of the litigation without prejudice. The dismissal does not apply to 3Com parent HP's PoE products -- any future litigation involving Network-1 and HP involving the patent will be in the U.S. District Court for the Eastern District of Texas.Network-1 owns six patents covering various telecommunications and data networking technologies. The Remote Power Patent was granted by the U.S. Office of Patents and Trademarks on April 17, 2001, and expires on March 7, 2020.

Netgear was not part of this particular infringement suit because the company had settled earlier. Netgear is a licensee of Network-1.

Read more about lans and wans in Network World's LANs & WANs section.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags 3ComLANs & WANs3CNetworkingcisconetgearAdtranfoundry networksextreme networks

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jim Duffy

Network World
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?