Nortel Networks has sued Arbinet-thexchange, alleging
copyright infringement and misappropriation of trade secrets
through the unauthorised use of Nortel Networks proprietary
software.
Nortel also alleges in the lawsuit that Arbinet exceeded its
permitted usage level under its "right to use" licence and has not
met contractual obligations regarding the purchase of "certain
switching systems".
Nortel filed the lawsuit after the companies engaged in a
"lengthy period of unsuccessful discussions" but failed to reach an
agreement, Nortel said.
Arbinet runs an electronic marketplace for telecommunications
service providers to trade voice traffic and internet capacity.
"Nortel is sending a clear signal that we will vigorously defend
our technology investments," a Nortel spokeswoman said,
Nortel's complaint alleges that Arbinet failed to purchase
certain telecommunication switches and/or hardware from or
certified by Nortel, in order to use Nortel copyrighted and
proprietary software at our Los Angeles, London, and New York EDPs
(exchange deliver points).
The complaint seeks injunctive relief to prevent Arbinet from
using Nortel software, actual and exemplary damages and attorneys
fees and estimated costs of about $6m, plus certain software
fees.
Arbinet said in its filing to the US Securities and Exchange
Commission it has entered into settlement discussions with Nortel
to resolve all disputes between the parties.
An Arbinet spokesman declined to comment on whether the
settlement discussions with Nortel are still ongoing or had broken
down.
Juan Carlos Perez writes for IDG News Service