Arista stock up on review of Cisco patent claims

Possible positive development for rival in intellectual property litigation
  • Jim Duffy (Network World)
  • 07 October, 2015 22:20

The U.S. Patent and Trademark Office this week reportedly agreed to consider the validity of two Cisco patents at issue in litigation with data center switching rival Arista Networks.

The development boosted Arista stock by over 5% on Tuesday, Oct. 6, according to Bloomberg. Cisco is suing Arista for copyright and patent infringement, and is seeking an injunction on the sale of Arista products that allegedly infringe on the Cisco patents.

+MORE ON NETWORK WORLD: Cisco slaps Arista Networks with patent infringement suit+

By agreeing to review some aspects of the patents, the Patent Trial and Appeal Board made a preliminary finding that Arista is likely to win its challenge, Bloomberg reports. The board declined to institute a review of a third Cisco patent, saying Arista hadn’t raised enough evidence to warrant one, according to Bloomberg.

An International Trade Commission staff recently determined that Arista may have infringed on three Cisco patents. Arista’s stock dropped after that development.

"In the short term, today’s decision has zero impact on the three patents that the ITC staff attorney recently recommended a finding of infringement,” Cisco said in an e-mailed statement. “Arista challenged another patent in the ‘944 ITC investigation, and the Patent Trial & Appeal Board only has recommended a review on some, but not all of the claims. Given the US Patent and Trademark Office's decided not to institute a number of Arista’s validity challenges, Arista should cease their continued use of Cisco’s intellectual property.”

Arista declined comment citing a quiet period.