Patent Pending

July 8, 2003

By Stacy Williams, News@Cisco

From the early days when a group of computer scientists built routers to connect the first computer networks, to the present day when Cisco is paving the way for converged networks, wireless, and other technologies, innovation at Cisco continues apace. Approximately 12,400 engineers working in more than 1,100 labs worldwide come up with new ideas every day. And in the last decade, Cisco acquired 81 companies comprised of engineers working on the next generation of internetworking technologies. Behind the scenes, the Cisco patent program and a strong patent portfolio help Cisco continue to innovate new networking products and solutions that meet customer needs.

Cisco has a long tradition of invention. Substantial evidence can be found in the Cisco patent portfolio. Patents issued to Cisco inventors have now surpassed the 1,100 mark, and nearly 3,000 Cisco applications are pending U.S. Patent Office review.

During the first 10 years of operation when Cisco was busy building market share and becoming the world leader in routing and switching, the company had not yet formalized a patent program. Then in 1994, seeing the need to begin capturing and documenting its innovations, Cisco developed a comprehensive patent program and the Cisco Patents On-Line (CPOL) system to encourage engineers to apply for patents and help Cisco track its development efforts. The program has since become a cornerstone of continued innovation at Cisco.

"Companies can use their patents in many ways," explains Robert Barr, Cisco vice president of intellectual property and worldwide patent counsel. "Some companies use their patents as a profit center--they try to extract patent royalties from other companies who are successful in the marketplace. Cisco uses patents to defend its freedom to innovate."

To safeguard its intellectual property and drive innovation in the industry, Cisco files more than 700 patent applications each year. One defensive strategy that Cisco employs is cross licensing so that Cisco can swap patent rights with other companies. Cisco has succeeded in negotiating a variety of cross licenses, this has saved the company millions of dollars in licensing fees, and prevented other companies from using their patents to block Cisco products.

An important aspect of innovation at Cisco is the ability to contribute to new industry standards. Cisco strives for technical excellence, creating a culture that encourages engineers to actively solve industry-wide problems. One of the company's major contributions to industry standards is Multiprotocol Label Switching, or MPLS, invented at Cisco in the mid 1990s. This set of protocols is widely used in the Internet for traffic engineering and virtual private network (VPN) applications.

"Over the years, teams of people at Cisco have worked on the MPLS code, developed protocols, and filed patents," says Cisco Fellow Bruce Davie. "The overall impact is that operators of large networks can control traffic flows and maximize network utilization, and service providers can build highly scalable VPNs."

The Cisco patent portfolio includes numerous other ideas essential to the creation and ongoing improvement of the networking technologies. "Many Cisco patents are 'behind the scenes' innovations that are not particularly glamorous, yet the network literally could not operate smoothly without them," says Guy Ellis, intellectual property program manager at Cisco.

One example is Standby Router Protocol, which lets host computers on the Internet use multiple routers as a single virtual router. Even if one router fails, connectivity is maintained because the other routers are on hot standby-ready to take over. Inventions like Standby Router Protocol make it possible for virtually all messages or transactions to be carried quickly and securely over the Internet.

Cisco inventors are also contributing in areas such as wireless networking, storage, voice, and security. For instance, Cisco has filed numerous patents in the mobile Internet Protocol (IP) space that allow an IP node to maintain existing communications while traveling from one network to another. This eliminates a stop-and-start approach to IP connectivity and is key to making mobile computing and communications possible.

Of course, the Cisco patent program could not exist without the inventors themselves, their ideas, and a company culture that fosters innovation. In addition to recognizing inventors with awards to encourage patenting their invention, Cisco makes it easy for the Cisco engineering community to submit new patent ideas.

As the Internet leader, Cisco is committed to deploying web-based applications across all functions to drive efficiencies and improve productivity. The patent program is an excellent example of how Cisco uses Internet technology to manage an otherwise lengthy and cumbersome process. The CPOL system helps inventors by managing and tracking initial submission, internal review, and steps through the U.S. Patent Office online. With CPOL, a five-member team manages 1,500 submissions from thousands of inventors every year.

"More companies today are building systems like CPOL, but the mid 1990s when Cisco launched its system, almost nobody was doing it," says Ellis. "In many ways, we believe CPOL is more advanced than other systems."

A strict review process helps ensure that only the best ideas are culled for patent submission. At least one of 15 patent technology committees and a legal team review each idea for patentability as well as strategic value to Cisco. Only 40 percent of the ideas proposed are ultimately submitted to the U.S. Patent Office.

Cisco has been successful at promoting internal innovation as well as acquiring great inventors. The Cisco patent portfolio is equally represented by technology from inside Cisco and from companies that Cisco has acquired.

Ultimately, the Cisco patent program benefits not only Cisco, but also the technology industry as a whole. In cases where Cisco patents apply to industry standards, Cisco reserves the right to use the patents defensively, but does not demand royalties. This approach helps ensure that Cisco does not inhibit the efforts of standards bodies to facilitate interoperability. "By contributing to industry standards, filing patents, and sharing them as freely as possible, we can promote progress in the industry," says Barr.

As industry advancement continues, the Cisco patent program will continue to capture Cisco innovations while helping to advance the industry. The Cisco strategy is clear: chart a path that protects its innovations while helping to make the Internet more useful and dynamic in the years ahead.

Stacy Williams is a freelance journalist based in Paonia, CO.