Network-1 Technologies, Inc. agreed to resolve its patent litigation case against Polycom, Inc, pending in the United States District Court of EDTX, for infringement of Network-1's Remote Power Patent (U.S. Patent No. 6218930, the ‘930 patent). Polycom was one amongst the sixteen defendants named in the litigation.
A mutual settlement was reached by both the companies to resolve this litigation. Under the settlement terms, Polycom agreed to license the ‘930 patent until March 2020 and pay a fee of $5 million for past sales on its Power over Ethernet (POE) products. Additionally, it will continue to pay royalties on the products until the patent term expires. The royalty payments also include POE products that comply with the Institute of Electrical and Electronic Engineers (IEEE) standards.
In September 2011, Network-1, filed a patent litigation against sixteen data networking equipment producers for violating its ‘930 patent. Previously Network-1 reached a settlement agreement with 11 defendants. The remaining four defendants in the lawsuit were Avaya Inc., AXIS Communications Inc., Hewlett-Packard Company, and Juniper Networks, Inc. Network-1 had decided to claim reasonable monetary damages including royalties from them.
At present, Network-1 has twenty-five license agreements in regard to the ‘930 patent which also includes added license agreements with Cisco Systems, Inc., Extreme Networks, Inc., Netgear Inc. and many other data networking sellers.