Tuesday, February 7, 2012

Airvana Files Suit Against Ericsson

Airvana Network Solutions filed a lawsuit in the State of New York against Ericsson alleging the misappropriation of its technology to secretly develop a knock-off product with a Korean partner. Airvana is seeking $330 million in damages.

Airvana notes that it first entered into a partnership with Nortel in 2001 covering both hardware and software of its femtocell technology. In 2005, Nortel convinced Airvana to hand over its proprietary hardware designs so that Nortel could take over manufacturing the hardware. Airvana expected to be paid a royalty for each product sold and it would continue to develop the software. In 2009, Ericsson purchased Nortel's North American wireless equipment business after Nortel went bankrupt, and among the assets it acquired from Nortel was the contract with Airvana. In late 2011, Ericsson informed Airvana that it was planning to sell a competing product . Airvana argues this violates the contractual agreement in force between Airvana and Ericsson.

Ericsson is Airvana’s sole customer for the technology that provides all of its current revenues.

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