Boston, MA 02/11/2014 (wallstreetpr) – Cisco systems, Inc. (NASDAQ:CSCO) spending of $13 million on a litigation case against patent row with innovatio could be subject of shareholders wrath as it ended up paying $2.7 million in settlement. This is absurd since the spending on the case exceeds the settlement package of which CSCO should have paid initially instead of going for a full trial. CSCO had taken up the case on behalf of its customers who had received threats from innovatio IP ventures LLP. Ventures was demanding up to $2,000 per location which had used Wi-Fi. An astonishing 14 000 letters were sent to cafes and hotels.
After spending the $13 million on the litigation and after serious thought the company called upon reforms to prevent such moves ever being taken in the future. CSCO was forced to enter the case as it had supplied routers that had been used by the businesses to access the Wi-Fi, in conclusion of the settlement CSCO was forced to pay 3.2 cents per unit.
CSCO enters an agreement with Samsung
In a bit to stop the troll like the one it was forced to pay litigation costs amounting $13 million Cisco systems, Inc. (NASDAQ:CSCO) has entered a partnership agreement with Samsung Electronics involving new license agreements. The agreement will protect the two companies from being possible targets of potential litigation involving patents. The agreement is aimed at covering the patent the two companies hold and aim at getting protection over the next 10 years. The idea behind the agreement is to stress more freedom of operation without worrying of being trolled on the patent front. CSCO had initially signed a cross licensing deal with Google Inc. (NASDAQ:GOOG).
Cisco systems, Inc. (NASDAQ:CSCO) was stable on Monday trading session with nothing much to report in the stock exchange, it closed the day on a stable price of $22.83 a slight improvement of 0.71%
