Wifi case puts spotlight on patent trolls Alev Bagater
Writing in Forbes magazine, he said that the tide was turning against the abuse of intellectual property laws by some non-practicing entities (NPEs) which buy patents and gain rights over companies using the products.
Nor would Cisco itself ever sell patents to such companies in the future, he said, adding that the company had done so in the past for various reasons.
Thousands of dollars in licensing fees
The case was brought by the company, Netgear and Motorola Solutions against Innovatio IP Ventures. It followed the company's demand for thousands of dollars in licensing fees from Cisco clients for the deployment of Wi-Fi solutions in homes and businesses.The more aggressive financial demands were struck out by Judge James Holderman, Chief Judge of the Northern District of Illinois who determined that the rate should be 9.45 cents a chip.
Infringement must be proved
However Innovatio still needed ‘to prove infringement, defend their patents’ untested validity, and deal with the fact that the rights they bought from Broadcom when they acquired the patents don’t seem to cover many of the types of users they have pursued,’ Mr Chandler said.He added that he welcomed the Federal Trade Commission and Congress’s decision to address the issue.