Cisco to Pay $70 Million in Civil Fraud Patent Case

Posted by at 12:17 am on March 25, 2013

A jury on Friday evening hit networking technology giant Cisco with a $70 million damages verdict for patent fraud. Reuters reported Friday that the jury found Cisco to have fraudulently obtained technology developed by XpertUniverse. Cisco was also found to have violated two XpertUniverse patents, with an additional $34,000 in damages awarded due to those claims.

XpertUniverse’s case claimed that Cisco’s “Expert on Demand” software platform was based on patented XpertUniverse software. The company claimed that Cisco had violated a non-disclosure agreement regarding XpertUniverse technology and that Cisco had entered into a relationship with XpertUniverse in which Cisco would distribute XpertUniverse software to call center customers.

Cisco, according to reports, approached XpertUniverse in 2004, with the two companies working together until 2007. XpertUniverse says it revealed to Cisco “every aspect of its intellectual property” in the course of the two companies’ affiliation.

The year after the two firms parted ways, Cisco announced the launch of Expert on Demand. XpertUniverse filed suit the year after that.

Cisco, in an emailed statement, expressed disappointment with the jury’s verdict. XpertUniverse’s attorney said the company was “obviously very happy.”

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