Cisco Systems Required To Pay XpertUniverse $70 Million As Part Of A Patent Lawsuit

Posted Mar 24, 2013

Networking equipment company Cisco Systems is required to pay XpertUniverse Inc. a $70 million civil fraud damages payment that was in connection with a failed partnership according to a federal jury.

The trial took place over two weeks and involved a jury of 6 women and 2 men at a court in Wilmington, Delaware.  The jury also decided that Cisco infringed on two of XpertUniverse’s patents for contacting experts online to have questions answered, which will require them to pay over $33,000 on those counts.

Based in New York, XpertUniverse sued Cisco after saying that they strung them along for more than 6 months with the possibility of a lucrative partnership.  XpertUniverse’s lawyer Charles Cantine said that Cisco’s actions led to the “destruction of the company” because his client may have been able to pursue potentially more profitable alliances instead.

Cisco’s lawyer Brett Schuman told the jury that XpertUniverse never had a “product, customers, or revenue.”  Cisco was interested in a partnership, but decided to back out after finding out XpertUniverse’s research led to just a “demo” for a future product according to Bloomberg.

XpertUniverse is a small company that has intellectual property as their “primary asset” said Cisco in a court document.  XpertUniverse was founded in the 1990s by Victor Friedman, a Ukranian immigrant.

The lawsuit was filed under: XpertUniverse Inc. v. Cisco Systems Inc., 09- cv-00157, U.S. District Court, District of Delaware (Wilmington).  The two patents involved in the lawsuit are 7,366,709 and 7,499,903.