Spherix sues Cisco over "immense" patent infringement


Spherix (SPEX) shares are +5.2%, with the move being attributed to the company filing a complaint against Cisco (CSCO +0.8%) over 11 patents.

Historically, Spherix has focused on biotech R&D, but obtained the IP - which was invented by Nortel - following an agreement with the Rockstar consortium that bought the patents from the bankrupt Canadian company.

"The scope of Cisco’s infringement of the asserted patents has been and continues to be immense," Spherix writes. "The vast majority of Cisco’s switching and routing revenue from March 2008 until the present is and has been generated by products and services implementing technology that infringes the asserted patents."

Complaint

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Comments (6)
  • JD in NJ
    , contributor
    Comments (1634) | Send Message
     
    This kind of thing, and it happens pretty often, just doesn't seem to be what the patent system was designed for. Spherix's business prospects certainly were not damaged in any way by what Cisco was doing back before Spherix purchased this portfolio of patents.
    25 Mar 2014, 12:43 PM Reply Like
  • garyt01
    , contributor
    Comments (110) | Send Message
     
    Let's just sue the big guy. Extortion, perhaps. Time will tell.
    25 Mar 2014, 02:03 PM Reply Like
  • chipster71
    , contributor
    Comments (25) | Send Message
     
    If you don't buy the patents you pay for the patents...time will tell
    25 Mar 2014, 06:19 PM Reply Like
  • andrewjc
    , contributor
    Comment (1) | Send Message
     
    and who cares if they win or lose, so long as the lawyers can bill for their time by creating conflict... there should be a law against lawyers.
    26 Mar 2014, 06:44 AM Reply Like
  • indytom01
    , contributor
    Comments (53) | Send Message
     
    If Cisco is indeed using technology that was covered under the Nortel patents, then why the complaints here, folks? This is exactly what patent law was intended for- the Rockstar Consortium paid for those Nortel patents and they have every right to join forces with SPEX to pursue licensing fees from the likes of Cisco. Now if SPEX management would stop crushing their stock with dilutive share sales this thing might have a chance to create shareholder value.
    27 Mar 2014, 11:57 AM Reply Like
  • JD in NJ
    , contributor
    Comments (1634) | Send Message
     
    Funny, I always thought patent law was intended to grant a temporary monopoly to the inventor of a new idea so that they could get their product to market without being crushed by competitors who couldn't think of it but had manufacturing facilities ready to go.

     

    I'm not trying to say that Nortel itself could not have had any grounds to pursue a case! If Nortel had managed to make a go of business using these patents Spherix almost certainly would not have had the opportunity to purchase the patents in question. So Spherix could not have been hurt by the alleged infringement if Nortel had succeeded, and they certainly haven't been hurt at all by Nortel's failure. Indeed, without Nortel's failure Spherix would most likely not have the prospect of juicy patent litigation so if anything they were helped by the events in question.
    27 Mar 2014, 12:20 PM Reply Like
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