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Cisco Drops Huawei Suit

Light Reading
News Analysis
Light Reading
7/28/2004
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Cisco Systems Inc. (Nasdaq: CSCO) has dropped its lawsuit against Huawei Technologies Co. Ltd., the companies announced today, putting to rest a year-and-a-half-long court fight.

Cisco sued Huawei in January 2003 in the U.S. District Court for the Eastern District of Texas. The routing giant accused the Chinese company (and its Texas-based subsidiary, FutureWei), of copying its IOS software and source code, copying documentation, and infringing on several of its patents.

But as the lawsuit wore on, it appeared the whole problem stemmed from some rogue developers at Huawei, not a company-wide mandate to rip off Cisco's intellectual property.

Cisco came out great guns when the case first started, issuing a strongly worded press release and winning its initial injunction against Huawei. But as the facts came out, Cisco softened its tone -- and, notably, the company didn't make a peep when the most recent stay in the case was issued in April.

Cisco did issue a statement on this development, however. "The completion of this lawsuit marks a victory for the protection of intellectual property rights," said Mark Chandler, VP and general counsel, Cisco Systems. "We are pleased to conclude the litigation as a result of the steps that were taken to address our concerns."

The steps taken, according to Cisco, include some changes Huawei made to its command line interface, user manuals, help screens, and portions of its source code to make them less like Cisco's. After a third party reviewed Huawei's products and Huawei discontinued the sale of products at issue in the suit, the lawsuit went away.

Interestingly, Huawei partner 3Com Corp. (Nasdaq: COMS) points out that this case was dismissed "with prejudice," meaning that Cisco can't bring another lawsuit against Huawei asserting the same or substantially similar claims. 3Com was not a party to the original lawsuit, but the company intervened in the case because of its joint venture with Huawei.

"3Com is extremely pleased that the litigation between Cisco and Huawei is now ended, and looks forward to continue competing on the merits of the products from its joint venture with Huawei," according to a company statement.

Light Reading's gavel-to-gavel coverage of the Cisco-Huawei suit, is listed below:



— Phil Harvey, News Editor, Light Reading

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go_ip
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go_ip,
User Rank: Light Beer
12/5/2012 | 1:24:53 AM
re: Cisco Drops Huawei Suit
Is this settlement bad news for Cisco ?
Now Huwaei can sell producst via 3com in US as well ?

Anybody has an idea as to how this will affect
Cisco or for that matter even Juniper.

If the product works, cost will become an issue ?
jim_smith
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jim_smith,
User Rank: Light Beer
12/5/2012 | 1:24:50 AM
re: Cisco Drops Huawei Suit
A little off topic...

Does Cisco sell any stuff in China or has Huawei pretty much locked them out of the Chinese market?
CtrlAltDel
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CtrlAltDel,
User Rank: Light Beer
12/5/2012 | 1:24:49 AM
re: Cisco Drops Huawei Suit
When the thread on Cisco-vs-Huawei first started, the discussion was as fiery hot as hell. Painted the picture as if evil Huawei enterprise from asia conquering the world by copy IP.

Now what? One post? Two including mine? Typical "we're heavenly angel, you're devilish devil" mentality. Similar situation like the WMD ...etc.

http://www.coxar.pwp.blueyonde...

CtrlAltDel



IPIPIP
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IPIPIP,
User Rank: Light Beer
12/5/2012 | 1:24:47 AM
re: Cisco Drops Huawei Suit
Cisco is and has been the #1 in China for data products. Huawei is more on the telecom side (particularly voice switches)
jim_smith
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jim_smith,
User Rank: Light Beer
12/5/2012 | 1:24:46 AM
re: Cisco Drops Huawei Suit
Cisco is and has been the #1 in China for data products.

I've also heard that Huawei has many more patents than Cisco in China.

Is that true?

If so, has Huawei sued Cisco for infringement in China?

Was that the main reason Cisco chickened out of this lawsuit?
issey
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issey,
User Rank: Light Beer
12/5/2012 | 1:24:46 AM
re: Cisco Drops Huawei Suit
No, it's not chickening out. You didn't read properly did you ?
The stuff was certufied by a 3rd party that Huawei is free from any Cisco Infringments.
junm
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junm,
User Rank: Light Beer
12/5/2012 | 1:24:45 AM
re: Cisco Drops Huawei Suit
Cisco is descending quickly in China market, not as someone mentioned before.

Especially in telecom market.. Cisco recently lost two major accounts to Huawei, Guangdong Telecom and Shanghai Telecom, each of the contract is several millions deal.. Now the carrier market share I think is 60% vs 40%(cisco).

On the enterprise side, Cisco is still good
but marketshare is dropping too. Cisco dont have any weapon to fight with Huawei and other domestic vendors. They are far cheaper, they are catching up in technology.. How can cisco dealing with them? After 3 years cisco will hold less than 40% of marketshare in my opnion.

Cisco internal guy also discloses that cisco china revenue decreased from 1B (2001) to 400+ million (2003).

Sooner or later, the story will be happened around world not only in china...
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