Cisco owes nearly $66 mln in audio-conferencing patent case, jury says

Intelligent Protection Management

30/08/2024 19:13

By Blake Brittain
       Aug 30 (Reuters) - Cisco Systems  CSCO.O  must pay video
group-chat app maker Paltalk  PALT.O  $65.7 million for
infringing a patent related to audio conferencing, a jury in
Texas federal court said on Thursday.
    The jury determined that Cisco's WebEx web-conferencing
products violated Paltalk's patent rights in audio-server
technology for teleconferencing.
    A Cisco spokesperson said on Friday that the company would 
challenge the verdict in post-trial motions and will appeal if
necessary. Paltalk attorneys Max Tribble and Kalpana Srinivasan
of Susman Godfrey said in a statement that they were "thrilled"
with the verdict.
    New York-based Paltalk's stock was down 37% to $3.45 per
share on Friday afternoon despite the verdict. The company said
in a press release on Friday that it estimated it would
eventually "receive no more than one third of the gross
proceeds" from the award. 
    Paltalk filed the lawsuit against San Jose, California-based
Cisco in Waco, Texas, federal court in 2021. Cisco denied the
allegations and argued that the patent was invalid.
    U.S. District Judge Alan Albright rejected Cisco's request
for a mistrial on Thursday, which Cisco had argued was necessary
after Albright "changed course" at the beginning of the trial on
how a key part of the patent would be interpreted.
    
    The case is Paltalk Holdings Inc v. Cisco Systems Inc, U.S.
District Court for the Western District of Texas, No.
6:21-cv-00757.
    For Paltalk: Max Tribble, Kalpana Srinivasan and Ryan
Caughey of Susman Godfrey
    For Cisco: Sarah Piepmeier, Elise Edlin, Robin Brewer,
Nathan Sabri, Ryan Hawkins and Andrew Dufresne of Perkins Coie

 (Reporting by Blake Brittain in Washington)
 ((blake.brittain@tr.com; +1 (202) 938-5713;))