US tech conglomerate Cisco Systems has been ordered to pay a total of US$1.9 billion to Centripetal Networks after infringing on four cybersecurity patents.
US District Judge Henry Morgan in Norfolk, Virginia concluded at a non-jury trial that four out of Centripetal’s five patented cybersecurity services had been copied by Cisco.
Evidence provided by Cisco was deemed insufficient after the company did not ‘advance any objectively reasonable defences at trial‘.
In the end, the company is ordered to pay US$1.9 billion in damages. According to Reuters, the sum includes US$755.8 million in damages multiplied by 2.5 to reflect Cisco’s ‘wilful and egregious’ conduct. A prejudgement interest of $13 million was also added to the total.
“Without the protection of a patent an emerging company could never take on big important challenges like these. We are grateful to the court for affirming this,” said Steven Rogers, CEO of Centripetal.
The Court awarded Centripetal a 10% running royalty for the apportioned sales made by Cisco for the past three years, followed by a separate 5% running royalty for an additional three-year term.
“The Court’s ruling affirms the opportunity for innovative companies like ours to develop solutions for the largest market opportunities,” added Mr. Rogers.
Centripetal said the award is the largest of any US patent case to date.
“From this point forward, we will continue to add researchers, engineers, and security analysts to the Centripetal team. We want to ensure the problem of cyber-security is marginalized and we’re going to make the investments necessary to do that,” said Jonathan Rogers, the COO of Centripetal.
Cisco stated that the company will file for an appeal at the US Court of Appeals.
Image credit: Reuters