Cisco Systems Sues Chinese Company Over Counterfeit Transceivers

Through a complaint filed last Friday in the Northern District of California, Cisco Systems Inc. and Cisco Technology Inc. (together, Cisco) brought an action seeking damages and injunctive relief against Wuhan Wolon Communication Technology Co. Ltd. and Wuhan Wolon Cloud Network Communication Technology Co. Ltd. (together, Wolon) in connection with transceivers allegedly sold with the plaintiff’s trademarks.

Transceivers are electronic devices that transmit and receive communications and data using fiber optic technology, the transceivers in question allegedly falsely display Cisco trademarks. Cisco asserted that the inauthentic products not only harm its brand, but pose serious risks to consumers because of their inferior quality.

The complaint explained that Cisco’s transceivers go through rigorous quality control processes. Allegedly, the equipment manufacturers Cisco employs to make transceivers comply with high-quality manufacturing and distribution standards, including regular facility audits.

Cisco asserted that, by contrast, it has no control over Wolon’s counterfeit products, which purportedly puts purchasers at risk of “significant business disruption, privacy and security breaches, data loss, and unpredictable and unsafe technological malfunctions.” In addition, the disingenuous products tarnish Cisco’s name and goodwill, the complaint asserted.

The complaint implored the court to step in, stating “now more than ever, consumers, companies, and governments need the Courts to intervene to cease this destructive and dangerous behavior.” The filing set forth five claims for relief under California and federal law for trademark and copyright infringement, dilution, false advertising, and unfair competition.

Cisco seeks an injunction halting the alleged misconduct, damages, including various types of enhanced damages, and its attorneys’ fees and costs. The company is represented by Bartko Zankel Bunzel & Miller PC.