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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?


To: RealMuLan who wrote (917)10/2/2003 11:58:24 AM
From: RealMuLan  Respond to of 6370
 
good news for both Cisco and HuaWei-Cisco halts patent suit vs. Chinese rival Huawei
By Associated Press, 10/2/2003

SAN JOSE, Calif. -- Signaling movement toward a settlement, networking equipment giant Cisco Systems Inc. agreed yesterday to temporarily halt its lawsuit accusing China's Huawei Technologies Co. of copying Cisco's proprietary technology.

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As part of the agreement to stay the litigation for six months, Huawei will abide by a preliminary injunction barring it from distributing routers and other switching products that copy Cisco's equipment.

"As part of the agreement, Huawei has stopped selling the products at issue in Cisco's lawsuit on a worldwide basis and will only offer for sale new modified products," said Penny Bruce, a Cisco spokeswoman.

An independent expert accepted by both companies will review Huawei's changes to make sure they do not copy Cisco's technology.

Specifically, changes have been made to the command-line interface, user manual, help screens, and a portion of source code in routers and switches.

Other terms of the agreement, including whether Huawei will pay Cisco any damages, are not public, said Jodi Warner, a spokeswoman for Huawei.

Huawei, founded by a former Chinese army officer, is trying to jump into the corporate router and switching market that Cisco dominates. This year, Huawei and Marlborough-based 3Com Corp. began a joint venture to develop and manufacture enterprise-class networking equipment.

Cisco filed the patent and copyright-infringement lawsuit in January, claiming the Chinese company illegally copied software, documentation, and other aspects from Cisco products. At least five patents were infringed, Cisco said. Shares of Cisco rose 61 cents to close at $20.20 on the Nasdaq Stock Market.

boston.com