Concern Cisco Case May Block Products

Arista Networks Inc. fell for a third day amid investor concern that trade agency could block US imports of their products in the United States on the basis of claims of patent infringement by Cisco Systems Inc.

California-based Arista Shares of Santa Clara, fell 7.8 percent to $ 64.46 at the close in New York. The company has plunged 18 percent since the end of trading Tuesday, the worst three-day consecutive drop since its IPO in June 2014.

The first test of the two cases against Arista Cisco began Wednesday before the International Trade Commission of the United States in Washington. The staff of the Commission, which acts as a third party on behalf of the public, has recommended the court considers that Arista violated three of the five Cisco patents in the case.

This recommendation gives Cisco an advantage in the case, according to Matt Larson, an analyst at Bloomberg Intelligence in Washington. Cisco is asking the agency to block network devices Arista enter the US

The judge is not required to follow the recommendation of the staff, and also their results are preliminary - the final decision on the case for the Commission to six members. Trade Judge David Shaw plans to publish his findings in a Jan. 27, and the agency expects to complete the investigation by May 27.

A second case against Arista Cisco, involving various patents, but the same products, is scheduled for trial in November with a deadline for completion in August.
The cases are In case of some network devices, 337-944 and 337-945, and the International Trade Commission of the United States (Washington).