Cisco, VOIP Duo Settle Suit

Net2Phone and ADIR announce settlement resolves all litigation between the companies.

Two voice-over-IP vendors suing Cisco Systems Inc. over a potential partnership gone sour have settled their lawsuit against the networking equipment maker.

Net2Phone Inc., a provider of VOIP services, and ADIR Technologies Inc, a maker of VOIP software, announced on Wednesday that the settlement resolves all litigation between the companies. Terms of the settlement were not disclosed because of a confidentiality agreement.

The two companies had sued Cisco in U.S. District Court in New Jersey in March seeking compensation and punitive damages on claims of misappropriation of trade secrets, fraud, unfair competition, breach on contract and breach of fiduciary duties.

The suit originated from a partnership between the companies and Cisco. According to the complaint, ADIR and Cisco were to have jointly developed a product to make ADIRs voice-over software compatible with Ciscos hardware products. Net2Phone and Cisco created ADIR, of Newark, N.J., in September 2000.

Officials at Net2Phone, of Newark, N.J., previously had said that Cisco "seriously misrepresented" the basis of their relationship and never incorporated the new products into its line, developing competing products instead.

"Both Net2Phone and ADIR are very pleased that we have achieved a satisfactory resolution of this dispute so expeditiously," said Net2Phone CEO Stephen Greenberg in a statement.