AfterDawn: Tech news

Patent troll gets 3.2 cents per Cisco router after lawsuits against end users fail

Written by Andre Yoskowitz (Google+) @ 09 Feb 2014 15:11 User comments (9)

Patent troll gets 3.2 cents per Cisco router after lawsuits against end users fail Infamous patent troll Innovatio IP Ventures has settled with Cisco over hundreds of million of routers used by the average retail business.
The trolls bought old Broadcom patents and last year sent 13,000 letters to chain hotels and even coffee shops, demanding up to $5000 in licensing fees for the use of Wi-Fi routers and other access points. None of the companies paid and Innovatio filed lawsuits.

Not willing to see their end users abused, Cisco, Netgear and Motorola all intervened in the lawsuits, getting Innovatio to reduce their demands from $5000 per business to $5 per router. Cisco did not relent and got the final settlement down to 3.2 cents per router. Cisco General Counsel Mark Chandler says the company will pay $2.7 million, 3.2 cents each for 85 million unlicensed devices. Cisco had already struck licensing deals for its other 100 million active routers. Innovatio can no longer attack Cisco router users.

"We spent $13 million on this litigation, not including the $2.7 million settlement," wrote Chandler. "I'm proud that we stepped up for our customers and appreciate the great job that our counsel at Kirkland and Ellis did for us. But that expenditure would not have been necessary if Innovatio had met its obligations to license on reasonable and non-discriminatory terms and had come to Cisco seeking a reasonable license first rather than targeting our customers and those of other manufacturers."

Chandler had always said the company's fight against Innovatio was a personal one: "For me, this was always a matter of protecting my customers against being ripped off. This is really outrageous conduct to try to rip off a bunch of innocent small businesses. Nothing will make me as a general counsel more angry than someone trying to abuse my customers."

Motorola and SonicWALL reached separate but similar settlements with the troll in December, and Netgear and HP are expected to do similar deals in the near future, as well.

If there was ever a case that shows the need for serious patent reform in the U.S., it is this one.

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9 user comments

110.2.2014 15:16

What a load...half the time the courts refuse to uphold patents that are vital parts of international standards, half the time they uphold them. How is anyone expected to work within such an ambiguous system?



210.2.2014 17:32

I would of sent them a turd in a box and told them not to spend it all in one place.


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310.2.2014 18:09

Originally posted by keebles:
I would of sent them a turd in a box and told them not to spend it all in one place.
my sentiments exactly.i wonder what would have happened had all these small businesses gotten together and told these trolls to blow them.

410.2.2014 22:08

Originally posted by aldan:
Originally posted by keebles:
I would of sent them a turd in a box and told them not to spend it all in one place.
my sentiments exactly.i wonder what would have happened had all these small businesses gotten together and told these trolls to blow them.
Right. Good luck blaming/suing people who bought a product in good faith. They can't be blamed but they can be individually intimidated into hopefully shelling out... a-holes.

In Oz, for security reasons, certain Cisco equipment is compulsory for small businesses, gov or insurance I'm not sure.


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Its a lot easier being righteous than right.


516.2.2014 22:52

These patent trolls should be put in prison.
As bad as cyber squatters if not worse!!!

617.2.2014 8:54

I just bought my router, Used... as in, 2nd-hand... at a thrift store... there were two of the same name-brand routers on the shelf... I paid $3 dollars for one of them... it works... I'm going back to the thrift store today... to buy the second one for the same price.
I always buy aftermarket. That's how I support local family-owned businesses. lol

718.2.2014 0:31

Originally posted by MagengarZ:
I just bought my router, Used... as in, 2nd-hand... at a thrift store... there were two of the same name-brand routers on the shelf... I paid $3 dollars for one of them... it works... I'm going back to the thrift store today... to buy the second one for the same price.
I always buy aftermarket. That's how I support local family-owned businesses. lol
I've got to warn you man... I know it might be hard to believe but modem/routers do wear out.

Its a lot easier being righteous than right.


818.2.2014 4:44

Originally posted by Jemborg:
Originally posted by MagengarZ:
I just bought my router, Used... as in, 2nd-hand... at a thrift store... there were two of the same name-brand routers on the shelf... I paid $3 dollars for one of them... it works... I'm going back to the thrift store today... to buy the second one for the same price.
I always buy aftermarket. That's how I support local family-owned businesses. lol
I've got to warn you man... I know it might be hard to believe but modem/routers do wear out.
I know. I just wanted to use them for geeking around connecting my two desktops and a laptop; and also to see if some of the so-called "wifi signal boost" hacks I often read about online work. lol

918.2.2014 11:32

Ah well, cheers then. Thought you might have been referring to a modem. Good luck.


Its a lot easier being righteous than right.


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