In 2007, Texas-based Commil USA sued Cisco CSCO for infringing a Wi-Fi technology.
8 years later, the court gave its final verdict in favor of Cisco.
2007-2015
Commil USA sued Cisco soon after buying the patent from the Israeli company, Commil Ltd.
In 2011, a federal jury in Texas found Cisco guilty as it allowed customers to use its products that infringe Commil's patent.
The jury awarded Commil approximately $63.8 million in damages which was later increased by $10.3 million for interest.
2 years later, in 2013, the Washington, D.C.-based Federal Circuit, called for a fresh trial, stating that Cisco should get a chance to defend itself on its "good faith belief" that Commil's patent was invalid.
In May this year, the Supreme Court ruled that the defense was not justifiable and sent the case back to the Federal Circuit.
The Verdict
Yesterday, a three-judge Federal Circuit panel ruled in favor of Cisco.
The panel decided that when it last considered the case, some of Cisco's arguments were not considered. On considering those arguments, the panel said that "substantial evidence did not support the jury's findings."
Conclusion
Though the representatives of Commil couldn’t be reached, Cisco’s General Counsel, Mark Chandler, said, "The patent never had anything to do with our products and the millions of dollars spent defending this unmeritorious suit are a travesty."
Cisco currently has a Zacks Rank #3 (Hold).
Investors may consider stocks like Stamps.com Inc. STMP, Mercadolibre, Inc. MELI and Autobytel Inc. ABTL. While Stamps.com and Mercadolibre sport a Zacks Rank #1 (Strong Buy), Autobytel carries a Zacks Rank #2.
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