Cisco’s Licensing Agreement Pays NPE Only 3.2 Cents Per Device
Cisco announced an agreement last week with Innovatio IP Ventures to license 85 million wireless devices for $2.7 million, or less than 3.2 cents per device. Cisco disclosed spending $13 million on the litigation that led up to this settlement. Cisco’s battle with Innovatio began in October 2012, when it joined Motorola and Netgear to intervene on behalf of customers accused by Innovatio of patent infringement. In response, Innovatio counter-sued Cisco, Motorola, Netgear, HP, and SonicWall for infringement of 17 wireless Internet patents (the same patents it asserted against the manufacturers’ customers). In October 2013, a federal court set a RAND rate of 9.56 cents for calculating any potential future damages in lnnovatio’s litigation against the five device manufacturers—a number dramatically lower than the rate of $3 to $37 requested by Innovatio.