Cisco Systems, Inc. (NASDAQ:CSCO) Scores Win Over Arista Networks Inc (NYSE:ANET)

Cisco Systems, Inc. (NASDAQ:CSCO) has scored large in its ongoing battle with Arista Networks Inc (NYSE:ANET). Recently, Arista announced that it has been by the US International Trade Commission from bringing its products in the US from its overseas manufacturers.

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The ban comes after the ITC ruled that Arista had infringed on two of Cisco’s patents. In the ban, ITC announced that it will be effective after a 60 day period of review. The period has since ended. Arista has been working hard to convince the US Patent Office to reverse Cisco’s patents. The company now hopes to convince the ITU withdraw the ban until a final ruling is made by the Patent Office.

In a statement, Arista spokesperson said they are waiting a decision by the International Trade Commission on the company’s request to have the remedial orders suspended. In the event that Ariska manages to convince the ITC to put the ban on hold, it implies that will be in effect just for a few days. Alternatively, the ban may be in place until the Arista changes its products to get rid of disputed technology. The company has indicated that it has come up with some workarounds including partnering with US manufacturers, which could open a window for it to start selling products.

In a blog post, Cisco’s lawyer Mark Chandler said the right solution to the standoff is for Arista to completely cease using technology copied from Cisco.

The two countries have a long and heated history. Originally, Cisco sued Arista in 2014 claiming that infringement into its copyrights and patents by Arista. Cisco demanded $335 million in damages from Arista. Cisco also filed a case against Arista with the International Trade Commission which has the power to impose a ban on patent-infringing products from being sold in the United States. Cisco however lost the verdict in a lawsuit in December.

Extension between the two companies has been raising and now has gone beyond legal circles. Arista has been hiring many of its engineers from Cisco. CEO Jayshree Ullal and Cofounder Andy Bechtolsheim are both former employees of Cisco.

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