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Huawei and Cisco Settle IP Dispute

Networking giant Cisco Systems has agreed to settle its lawsuit against Chinese rival Huawei Technologies.

Under the deal announced on Wednesday, which finalizes a tentative agreement reached in October, Huawei will revise its command-line interface, user manuals, help screens and some source code to address Cisco's concerns on routers and switches. Financial terms were not disclosed, although each party must pay its own legal fees.

"The completion of this lawsuit marks a victory for the protection of intellectual property rights," said Mark Chandler, Cisco's general counsel. "We are pleased to conclude the litigation as a result of the steps that were taken to address our concerns."

Stanley Young, an attorney representing Huawei, said his client welcomed the final resolution to the case.

"Huawei certainly looks forward to competing in the marketplace on its merits," he said.

"We are very satisfied with the result, which shows that Huawei Technologies is worthy of the trust of its customers," Huawei Technologies spokesman Fu Jun said in a Thursday telephone interview with China Daily. "Huawei has always respected and protected intellectual property rights, investing heavily in product research and development.

"Before the lawsuit, Huawei had already taken the initiative to amend its controversial products to avoid further disputes and enhance its competitiveness in order to explore overseas markets."

The Shenzhen-based Huawei is trying to jump into the corporate router and switch market that Cisco dominates. Fu also said the case didn't affect Huawei's business in the international market,

The lawsuit was originally filed in January 2003 at the US District Court in Marshall, Texas.

(China Daily July 30, 2004)

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