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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 79.27-1.2%Dec 11 3:59 PM EST

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To: StockMan who wrote (14622)6/19/1998 11:57:00 PM
From: gbh  Read Replies (1) of 77400
 
Cisco has no chance of filing a counter suit against LU.

On what do you base this assertion?

If LU were to look more closely, they'd probably find a whole bunch of patents that Cisco has violated.

Why do think they didn't look closely already?

Like I said, Cisco had better settle. They may win 1 or 2 patents but 8, not a chance.

If Cisco feels they have even 1 or 2 patents, basic to some aspect of networking that would be contained in LU products, then they would push for a cross-licensing agreement, perhaps with fees involved in one direction or the other.

Also Cisco will have to begin re-implementing the infringements (if they can).

Worst case would likely be that Cisco would pony up whatever patent licensing fees are "fair and equitable" relative to what other networkers like ASND, NN, BAY, COMS, etc. currently pay LU. These can sometimes be as high as 1-2% of revenue on affected products.

Gary

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