Cisco Systems, the world`s largest maker of gear that directs Internet traffic, dropped its copyright lawsuit against China`s Huawei Technologies, the company said yesterday.
The dropping of the suit comes after Huawei changed its command line interface, user manuals, help screens and parts of its source code, discontinued the sale of product at issue in the case and agreed to sell only new, modified products globally, Cisco said.
"Protecting our intellectual property is of paramount importance to Cisco," Mark Chandler, Cisco VP and general counsel, said in a statement. "We are pleased to conclude the litigation as a result of the steps that were taken to address Cisco`s concerns."
Cisco declined to disclose any further terms or conditions related to its dropping of the lawsuit.
Cisco, based in San Jose, California, sued privately held Huawei in January 2003, accusing China`s largest maker of telecommunications gear of copying its intellectual property, documents and other material and infringing on several patents.
The case had been pending in US District Court in Marshall, Texas.
Most of Huawei`s sales come from the telecom sector, and the company wants to boost corporate business, where Cisco reigns. It formed a joint venture with Cisco rival 3Com to serve those customers.
Cisco`s lawsuit had been suspended since last October after Huawei agreed to stop selling disputed products and submit any modified gear to an independent expert for review. Cisco said that review was completed, but it declined to provide details.
Last October, Huawei agreed to stop selling disputed routers and switches and to modify its products, including changing user manuals and parts of Huawei`s source code.
Source code, the underlying blueprint of computer software, determines how programs work. A router connects computer networks for transmitting data and information, while a switch directs network traffic.
Although Huawei and other low-cost rivals do not pose a serious threat to Cisco now, analysts ultimately expect them to squeeze Cisco`s core businesses of switches and routers, which account for about 75% of its sales and profits.
3Com, which formed its joint venture with Huawei last November, intervened in the lawsuit last summer.
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