Riverbed loses patent battle against rival Silver Peak


A Delaware jury has ruled Riverbed's (RVBD +0.9%) bread-and-butter Steelhead WAN optimization hardware infringes two software patents held by rival Silver Peak. Though Riverbed was cleared of literal infringement, it was ruled guilty based on the doctrine of equivalents.

Markman Advisors thinks Riverbed could face an injunction on its RiOS OS, which powers its Steelhead hardware. Riverbed insists the patents cover "two minor optional features" within RiOS, and that the ruling "will not have any impact on our business or customers."

The company adds it "fully [expects] to prevail before the District Court on post-trial motions."

Shares shrugged off the verdict after initially dipping lower. They remain 5% below Elliott Management's rejected $21/share offer price.

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Comments (5)
  • pj4272
    , contributor
    Comments (28) | Send Message
     
    RVBD is found infringing a rival's patents and "No Impact to Business or Customers" and "No Impact to Steelhead" is their response?

     

    In addition: "In the meantime, the verdict, which addresses two minor optional features in our RiOS(R) software, will not have any impact on our business or customers...No relief can be granted to Silver Peak that would prevent Riverbed from continuing to manufacture, sell and maintain our Steelhead(R) product."

     

    What? Why was this litigation even carried out?

     

    And where is Elliott when you need them to highlight misleading comments as the activist hedge fund did 3 weeks ago?
    http://yhoo.it/1h04Bgp

     

    April fools'?
    1 Apr 2014, 07:59 PM Reply Like
  • pj4272
    , contributor
    Comments (28) | Send Message
     
    And even if, for the sake of argument, the verdict addresses two minor optional features in your software, if you've been found to infringe those features you will pay the patent owner, you will not offer those features, and/or you will continuing paying your lawyers in your appeal. All of those options, individually and collectively, will impact your business and customers.
    1 Apr 2014, 08:20 PM Reply Like
  • pj4272
    , contributor
    Comments (28) | Send Message
     
    RVBD: "No relief can be granted to Silver Peak that would prevent Riverbed from continuing to manufacture, sell and maintain our Steelhead(R) product."

     

    That is BS, and the absolute statements in RVBD's press release are disingenuous. Why?

     

    Because Silver Peak plans to seek a permanent injunction, which WOULD "prevent Riverbed from continuing to manufacture, sell and maintain [the] Steelhead product," and Riverbed knows this.

     

    "Silver Peak intends to seek a permanent injunction against the features of Riverbed’s RiOS and Steelhead devices covered by the Silver Peak patents – “SDR-Adaptive,” as well as “Enhanced Auto-Discovery” when used in combination with “Full Transparency.”

     

    source: http://bit.ly/1ecRUcl

     

    Would that impact your business and customers, Riverbed?
    2 Apr 2014, 02:49 PM Reply Like
  • wil3714
    , contributor
    Comments (2367) | Send Message
     
    This company is in trouble dead in the water sell it OPNET bust, hostile takeover? Why get in front of this one?
    2 Apr 2014, 03:10 PM Reply Like
  • pj4272
    , contributor
    Comments (28) | Send Message
     
    I'm not, and I am not advocating going long.

     

    I'm calling out a misleading press release by a company with a recent history of misleading statements.
    2 Apr 2014, 03:27 PM Reply Like
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