Summary
Arista Networks, Inc. (ANET) has received a significant positive ruling from the U.S. Customs and Border Protection (CBP) on November 18, 2016. The CBP has determined that Arista's current products utilizing the redesigned Extensible Operating System (EOS) version 4.16 or later are not within the scope of the limited exclusion order issued by the U.S. International Trade Commission (ITC) in Investigation No. 337-TA-944. This ruling allows Arista to continue importing and selling these products into the United States, effectively mitigating the impact of a prior ITC decision that found infringement by earlier versions of EOS. This development is crucial for investors as it removes a significant overhang on Arista's business operations and future sales. While Cisco Systems, Inc. had filed an enforcement action with the ITC asserting violations of the exclusion order, this CBP ruling provides immediate relief and operational clarity. Investors should note that the ITC is not bound by the CBP decision and may reach a different conclusion in the ongoing enforcement action.
Key Highlights
- 1Arista Networks received a favorable ruling from U.S. Customs and Border Protection (CBP) on November 18, 2016.
- 2The CBP determined that Arista's redesigned EOS (version 4.16 and later) does not infringe on the patents subject to the ITC's limited exclusion order in Investigation No. 337-TA-944.
- 3This ruling permits the import and sale of Arista's current products containing the redesigned EOS into the United States.
- 4The ruling addresses concerns arising from a prior ITC determination that found infringement by earlier versions of Arista's EOS.
- 5Cisco Systems had filed an enforcement action with the ITC alleging Arista was violating the exclusion order.
- 6CBP has instructed U.S. ports to allow entry of Arista's redesigned products for consumption and sale.
- 7The ITC remains independent of the CBP ruling and will continue its enforcement action.