Ipsilium LLC v. Cisco Systems, Inc. (Northern District of California)

On December 18, 2017 DJLG filed a complaint against Cisco, Inc. for willful infringement of two patents on behalf of our client Ipsilium LLC.  Ipsilium was founded with the inventor of the patents, a well-known researcher who has developed many improvements in computer speed and efficiency.  Based on an application filed in 1999, the patents disclose radically faster devices for processing packets in data networks.  The complaint alleges that Cisco adopted Ipsilium’s patented technology in 2012, to counter competitors who were then selling faster, less expensive network switch devices.  Such “low-latency” data switches are particularly valued by High-Frequency Traders and other financial institutions looking for the fastest access to trading and pricing data.  The complaint alleges that Cisco’s has enabled Cisco to regain a competitive position in that market segment, one Cisco has called “a key vertical” with recent sales estimated at $3.5 billion per year and growing.   Ipsilium also claims that Cisco was aware of the Ipsilium patents while developing and launching its products, but chose to appropriate Ipsilium’s technology with no attempt to license the patents.  Ipsilium is seeking a reasonable royalty on Cisco’s sales as well as enhanced damages and its attorneys’ fees for Cisco’s willful infringement.  The case, no. 17-cv-7179, is pending in the U.S. District Court for the Northern District of California.