Centripetal Networks

History

2020: Cisco will pay Centripetal Networks of $1.9 billion for patent infringement of cybersecurity technologies

At the beginning of October, 2020 the American district court obliged to pay to Cisco more than $1.9 billion to Centripetal Networks startup for violation of four patents in the field of cyber security.

According to the statement of Centripetal Networks, Cisco copied and integrated the patented system of protection then the startup lost public contracts into the networks. According to Bloomberg, the patents violated by Cisco are related to the Threat Intelligence Gateway system created by Centripetal Networks startup. Financing of development of the patented technologies partially was performed at the expense of grant means of the U.S. Department of Homeland Security, patents were granted during the period from 2015 to 2018.

The court obliged to pay Cisco a penalty in the amount of $1.9 billion for theft of cybersecurity technologies at Centripetal Networks

The senior circuit judge Henry Morgan noted that all samples of products which are almost provided by Cisco company within judicial proceedings and also technical documentation and demonstration materials are concentrated on its old developments, but not on the new products Centripetal Networks. Considering failure of evidence which would justify Cisco, court obliged the company to pay Centripetal Networks the amount of damage in the amount of $755 million which besides still the court increased by 2.5 times for "deliberate patent infringement".

Besides, within the next three years of Centripetal Networks will receive a royalty in the amount of 10% from sales of the products Cisco violating patents. After that the three-year period with payment to a royalty startup in the amount of 5% will follow.

We are disappointed with court's decision of the first instance as we provided all necessary proofs confirming lack of violation of the rights and also the fact that the innovation products Cisco appeared many years prior to patent grant of Centripetal Networks company, - said in Cisco.[1]

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