8-KOther Events

Arista Networks, Inc. 8-K Report, Corporate Update (Mar 28, 2018)

Filed March 28, 2018For Securities:ANET

Summary

Arista Networks, Inc. (ANET) filed an 8-K on March 27, 2018, to report on an International Trade Commission (ITC) proceeding initiated by Cisco Systems, Inc. The filing details a Recommended Determination (RD) issued by an Administrative Law Judge (ALJ) on March 23, 2018. The ALJ found that Arista's redesigned products do not infringe one of Cisco's patents (US Patent No. 6,377,577) but do infringe another (US Patent No. 7,224,668, the '668 patent). Crucially, the '668 patent has been previously determined to be unpatentable by both the Patent Trial and Appeal Board and the Federal Circuit. Furthermore, the ALJ recommended suspending remedies related to the '668 patent pending the outcome of Cisco's appeals. Investors should note that Arista continues to provide updates on this ongoing litigation through its Investor Relations website and SEC filings, emphasizing transparency regarding potential risks.

Key Highlights

  • 1ALJ issued a Recommended Determination (RD) on March 23, 2018, in the ITC 945 modification proceeding initiated by Cisco.
  • 2Arista's redesigned products were found NOT to infringe US Patent No. 6,377,577.
  • 3Arista's redesigned products were found to infringe US Patent No. 7,224,668 (the '668 patent).
  • 4The '668 patent has previously been deemed unpatentable by the Patent Trial and Appeal Board and the Federal Circuit.
  • 5ALJ recommended suspending remedies concerning the '668 patent pending Cisco's appeals.
  • 6Arista maintains ongoing disclosure of litigation details on its Investor Relations website and SEC filings.

Frequently Asked Questions

The ALJ found that Arista's redesigned products infringe the '668 patent. However, this patent has previously been declared unpatentable, and the ALJ recommended suspending any remedies until Cisco's appeals are resolved.

Yes, the finding of non-infringement on US Patent No. 6,377,577 is a positive development for Arista, as it indicates that at least one of the patents in question does not pose an infringement risk for its redesigned products.

Arista is committed to transparency and provides regular updates on the litigation and associated risks through the Legal Proceedings section on its Investor Relations website and in its SEC filings, including its Form 10-K.

The previous determinations of unpatentability by higher authorities (Patent Trial and Appeal Board and Federal Circuit) significantly weaken the potential impact of Cisco's infringement claim related to the '668 patent, especially as the ALJ recommended suspending remedies.