Cisco Systems and Huawei agreed to stay the litigation that is currently pending in a district court in Texas. As part of the agreement, the two companies have agreed on a course of action that they expect -- upon full implementation and pending completion of an independent expert review process -- will lead to the end of the lawsuit.
Specifically, Huawei agreed to continue to abide by the terms of a Preliminary Injunction Order. To address Cisco's concerns, Huawei has voluntarily made changes to certain of its router and switch products. The parties have agreed on a process for reviewing these changes. All other terms of the agreement are confidential.
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- In January 2003, Cisco Systems filed a lawsuit against Huawei Technologies and its subsidiaries Huawei America and FutureWei Technologies alleging unlawful copying of Cisco's intellectual property. In particular, the suit alleges that Huawei unlawfully copied and misappropriated Cisco's IOS software, including source code, copied Cisco documentation and other copyrighted materials, and infringed numerous Cisco patents. Cisco claimed that Huawei's operating system contains a number of text strings, file names, and even bugs that are identical to those found in Cisco's IOS source code.
- In March 2003, 3Com and Huawei Technologies said that they would form a joint venture based in Hong Kong with principal operations in Hangzhou, China. Huawei's contribution to the JV will include enterprise networking business assets, including LAN switches, routers, engineering, sales/marketing resources and personnel, and licenses to its related intellectual property. 3Com's contribution to the JV will include $160 million in cash, assets related to its operations in China and Japan, and licenses to its related intellectual property. The name of the joint venture will be 3Com-Huawei in English and Huawei-3Com in Chinese. 3Com said the JV would provide it with modular layer 2 and 3, 10/100/1000 MB switches. The JV and Huawei will also provide 3Com with a full line of enterprise routers.
- In June 2003, a U.S. District Court judge issued a preliminary injunction against Huawei Technologies.
