- Arista Networks (NYSE:ANET) is down 2.3% today after a setback at the ITC, which maintained an import ban on products involved in a patent dispute with Cisco Systems (NASDAQ:CSCO).
- That's despite rulings by the Patent Trial and Appeal Board that invalidated a pair of Cisco's related patents. Those actions aren't a final step, the ITC noted.
- In a statement, Arista said it was "deeply disappointed" in the decision, which represented an "unfortunate departure from precedent and from the core premise of the America Invents Act and its inter partes review proceedings." It's appealing the decision and working on modified products in case the ITC decision is sustained.
- The move brings "near-term execution risk" for Arista that could affect the Q3 outlook, says Wells Fargo (NYSE:WFC)'s Jess Lubert. Meanwhile, J.P. Morgan's Rod Hall imagines Arista is ready with workarounds: "In the end of the day this is disappointing for Arista and likely sustains margin pressure from US production. However, we believe the positive PTAB ruling was a surprise and that Arista is likely well prepared to continue to operate given this outcome."
- Now read: Cisco To Acquire Observable Networks For Security Forensics
Original article