Fergie's Tech Blog

Update: Fortinet's Future Hangs On Monday Ruling

Larry Hooper writes in CRN.com:

A decision expected in Washington Monday will determine the fate of a startup security vendor.

Indeed, the very survival of Fortinet, at least as it exists in the United States, hangs on the decision coming from the U.S. International Trade Commission.

The ITC is expected to announce Monday its ruling on how to “remedy” Fortinet’s violation of a Trend Micro patent. The commission in May determined that the vendor had indeed violated Trend Micro’s antivrus patent.

In a best-case scenario for Fortinet, the commission will issue an exclusion order, which would bar it from bringing its products into the United States. That decision would allow distributors and resellers to continue selling the product that is already here. But the commission could issue a cease-and-desist order, essentially shutting down U.S. sales of the product entirely.

The U.S. International Trade Commission Monday ordered Fortinet to stop importing products that contain its antivirus software into the United States, but stopped short of preventing the company from supporting its current customers.

Fortinet’s Fortigate appliance competes in the emerging unified threat management category of single-box appliances that serve as firewalls and VPNs, with antivirus, antispyware and other security options available.

The ITC’s order stems from an earlier ruling that the antivirus software from Fortinet, Sunnyvale, Calif., violates a Trend Micro patent.

The order bars Fortinet from importing, marketing, advertising, offering for sale or selling the affected products. The order also bans Fortinet from aiding or abetting other entities in the sale or distribution of the products.

posted by Fergie @ 8/08/2005 04:37:00 PM