Martin May, regional director of Enterasys Networks, says the filing of Cisco`s latest lawsuit could see the multinational hit from more than one side, with political and economic considerations making for a combustible package.
Cisco`s lawsuit against Chinese company Huawei has raised a number of issues in the networking industry. Most particularly, both companies involved in the suit will find themselves tied up in what looks to be protracted and most importantly expensive litigation both in terms of finance as well as management resources.
This will leave the way clear for other companies to take advantage of market share which will become available while the two companies battle out the dispute in court.
"It is far too early in proceedings to predict an outcome of the lawsuit," says Martin May, regional director of Enterasys Networks.
"However, any protracted legal dispute will be accompanied with costly disruptions as management focuses on what`s happening in court. What is more, doubt has been created in the minds of distributors and resellers who also stand to be drawn into the battle."
Protecting intellectual property has been a bugbear of many an IT company over the years. However, May points out that the copying of technology has been happening for some time.
"A quick look at the motor industry and the electronics industries gives us a number of examples of how technology has been copied and sold on more cheaply.
"No one is excusing any kind of breach of copyright or patents, and Enterasys has always been at the forefront of research and development, throwing tremendous resources at our R&D facilities. However, keeping your distributors and most importantly your end-users in a state of suspended animation while you focus on a lawsuit may not be the smartest move."
In terms of legalities, May says the South African market will have to wait on the outcome of both the US and the UK proceedings. Should the courts find in favour of Cisco, the company may have recourse to pursue action in SA which follows precedent on UK rulings.
"The lawsuit comes at a time when the networking industry was beginning to show signs of recovery. There is no doubt that the pre-occupation of both networking companies will be used to the fullest advantage by alternate networking companies."
Another obstacle is the very obvious political intricacies raised by the suit. Filing the suit in the US against a Chinese company will do nothing for the relations between the two countries. May says no one can be sure if this will have any effect on the outcome of the case but points out that the political angle will not make the resolution any easier or faster.
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