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

Activation playbook: Deliver data that powers impactful, game-changing campaigns

Bringing together data and technology to drive better business outcomes

Free Download

In unpredictable times, a data strategy is key

Data processes are crucial to guide decisions and drive business growth

Free Download

Achieving resiliency with Everything-as-a-Service (XAAS)

Transforming the enterprise IT landscape

Free Download

What is contextual analytics?

Creating more customer value in HR software applications

Free Download

Recommended

What is hacktivism?
hacking

What is hacktivism?

27 May 2022
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

Most Popular

16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

13 May 2022
Europe's first autonomous petrol station opens in Lisbon
automation

Europe's first autonomous petrol station opens in Lisbon

23 May 2022
Linux-based Cheerscrypt ransomware found targeting VMware ESXi servers
ransomware

Linux-based Cheerscrypt ransomware found targeting VMware ESXi servers

26 May 2022