Net2Phone, ADIR Technologies sue Cisco

NEWARK: Net2Phone Inc., a provider of voice over Internet Protocol services,

and ADIR Technologies Inc., a provider of voice-over-IP software, on Tuesday

said they jointly filed a lawsuit against Cisco Systems Inc. alleging fraud by

the No. 1 maker of equipment that powers the Internet.

The complaint, filed in the United States District Court for the District of

New Jersey, seeks both compensatory and punitive damages and also alleges

misappropriation of trade secrets, unfair competition, breach of contract and

breach of fiduciary duties.

Cisco, which invested in both companies, dismissed the lawsuit. "This

appears to be an effort to justify a business failure by filing a lawsuit,"

Cisco spokesman Steve Langdon said. The complaint says that Cisco

"seriously misrepresented" the basis on which a Net2Phone, ADIR and

Cisco relationship was founded.

Net2Phone and Cisco created ADIR in 2000, with Cisco entering into an

agreement with ADIR to jointly develop a product to make ADIR's voice-over

software compatible with Cisco's hardware products, and ultimately produce a

marketable system for Internet voice-over communication, Net2Phone said.

Products developed under the agreement were never integrated into Cisco's

product line, according to Net2Phone.