WSJ reports that Cisco has sued Huawei, “saying the Chinese company copied its software and violated its patents.” Huawei has fast become a competitor to Cisco in markets like China (where it is based) with its strategy of providing lower-cost products in the networking space. Adds WSJ:
Founded in 1988 as a maker of telecommunications equipment, Huawei branched into computer-networking gear in recent years and opened offices in the U.S. It is the largest and best-known of the Asian-based competitors challenging Cisco’s dominance in the region by offering similar gear at much lower prices. Huawei reported sales last year of $2.7 billion, down 12% from a year earlier.
Huawei’s gear is so similar to Cisco’s that some analysts have questioned whether the Chinese company had stolen Cisco’s technology or developed it independently by “reverse engineering,” or examining the guts of Cisco’s equipment.
Analysts said the lawsuit may be aimed less at protecting Cisco’s sales in China, and more at stymieing Huawei in the rest of the world.