Net2Phone, ADIR Technologies Sue Cisco

By Matt Carolan  |  Posted 2002-03-20

Net2Phone, Inc., the provider of voice-over-IP services, and ADIR Technologies, Inc. a maker of voice-over-IP software and solutions, have jointly filed suit against telecommunications equipment maker Cisco Systems, Inc., alleging misappropriation of trade secrets, fraud, unfair competition, breach of contract and breach of fiduciary duties.

The New Jersey companies complaint, filed in the U.S. District Court in New Jersey, stems from a potential partnership with Cisco that went bad.

According to the two companies, ADIR, which was created by Net2Phone and Cisco in September, 2000, was to have developed with Cisco "a product that would make ADIRs voice-over software compatible with Ciscos hardware products, and ultimately produce a highly marketable system for internet voice-over communication," according to the complaint.

Net2Phone and ADIR say Cisco "seriously misrepresented" the basis of their relationship. Cisco never incorporated the new products into their line, and instead developed its own competing products, according to a spokesperson for Net2Phone.

Stephen Langdon, a spokesman for Cisco, declined to speak to specific charges made by Net2Phone because of the pending suit, except to say, "This appears to be an effort to justify a business failure by filing a lawsuit."

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