Judge Morgan found that the San Jose, California-based tech giant’s patent infringement “was willful and egregious” and he “enhancing the damages by a factor of 2.5 is appropriate.
Cisco to pay $1.9 billion to Centripetal Networks
Based on his findings, Judge Morgan ordered Cisco to pay Centripetal $755,808,545 in damages (enhanced by a factor of 2.5X) to equal $1,889,521,362.50). He also ordered the tech giant to pay pre-judgment interests of $13,717,925 applied to the actual damages before enhancement.
The total damages awarded to Centripetal Networks were $1,903,239,287.50 payable in a lump sum due on the judgment date.
Centripetal Networks to receive a running royalty from Cisco
In addition, Judge Morgan ordered Cisco to pay Centripetal a running royalty of 10% on the apportioned sales of the accused products and their successors for a period of three years. After that, the running royalty will be 5% on such sales for a second three-year term.
The Virginia-based cybersecurity solutions provider estimated that it will receive as much as $3.25 billion in total damages from Cisco’s willful patent infringement of its technologies. It is the largest damages award in any patent infringement case to date.
