Feeds

Cisco coughs up to patent troll, smacks down IP laws

Borg's legal fees in Innovatio case were five times the settlement

Next gen security for virtualised datacentres

Cisco has announced that its long-running battle with patent troll Innovatio is over, with the licensing outfit accepting $US2.7 million to settle the case.

The deal includes Netgear and Motorola devices.

As noted by Cisco's Mark Chandler in this blog post, the settlement amounts to 3.2 cents for each of 85 million WiFi device covered by the settlement, or even the 10 cents per device determined by Chief Judge Holderman in the Northern District of Illinois.

Founded in 2011, Innovatio started lawyer-lettering WiFi users on the basis of patents it acquired from Broadcom. Its lawsuits targeted hotel chains like Marriott, Hyatt and Best Western, along with coffee-shops and cafes that had deployed WiFi hotspots.

In 2012, the vendors took the fight back to Innovatio, and while their accusation of racketeering didn't survive court hearings, their claim that they had signed licensing agreements with Broadcom which Innovatio admitted covered 100 million of the devices it was trying to seek payment for.

Cisco notes that not including the settlement, it has spent $US13 million on this case alone. Chandler doesn't miss the chance to take a swing at the sorry state of patent law, writing:

“If our laws included provisions requiring those who target innocent third party users of products to register their claims at the FTC and make sure users know they can take their claims to manufacturers like Cisco, it seems unlikely Innovatio would have engaged in its letter-writing shakedown against end users. And if they thought they might be on the hook for the $13M we had to spend, they might have thought twice about the way they approached their licensing scheme.” ®

The essential guide to IT transformation

More from The Register

next story
Hello, police, El Reg here. Are we a bunch of terrorists now?
Do Brits risk arrest for watching beheading video nasty? We asked the fuzz
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Munich considers dumping Linux for ... GULP ... Windows!
Give a penguinista a hug, the Outlook's not good for open source's poster child
EU justice chief blasts Google on 'right to be forgotten'
Don't pretend it's a freedom of speech issue – interim commish
Detroit losing MILLIONS because it buys CHEAP BATTERIES – report
Man at hardware store was right: name brands DO last longer
Snowden on NSA's MonsterMind TERROR: It may trigger cyberwar
Plus: Syria's internet going down? That was a US cock-up
UK government accused of hiding TRUTH about Universal Credit fiasco
'Reset rating keeps secrets on one-dole-to-rule-them-all plan', say MPs
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Yes, but what are your plans if a DRAGON attacks?
Local UK gov outs most ridiculous FoI requests...
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.