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Cisco says Huawei misstated facts in 2003 copyright case

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NEW YORK, Oct 11 (Reuters) - Cisco Systems onThursday accused Huawei Technologies Co Ltd ofmisstating facts concerning their 2003 copyright infringementcase and released segments from what it said was a previouslysealed document.

Huawei, the world's second-largest maker of routers, hasrepeatedly said Cisco's claims were unjustified as the Chinesecompany had received the disputed source code form a thirdparty.

The company, along with ZTE Corp, , isthe focus of a U.S. House Intelligence Committee report thatsaid Beijing could use equipment made by the two companies toengage in espionage and endanger vital systems.

The panel said U.S. companies should stop doing business withHuawei and ZTE, and the committee chairman urged that Canadiancompanies do the same. Australia, for its part, has bannedHuawei from helping build its national broadbandnetwork.

Cisco said it was now releasing parts of an expert's reportin a blog by Mark Chandler, general counsel at Cisco, "so theworld could learn what really happened."

In the segments released it said that "the exactness of thecomments and spacing not only indicate that Huawei has access tothe Cisco code but that the Cisco code was electronically copiedand inserted into (Huawei's code)."

The case between the two companies was eventually dropped.

Cisco Chief Executive John Chambers has said that Huaweidoes not always play by the rules.

Earlier this year, Cisco Executive Vice President Rob Lloydsaid, "We clearly know that our customers view innovation fromCisco and they don't see the same from Huawei. We would clearlysay that imitation isn't innovation."

Lloyd also said on the company's earnings call in May, "Theprivacy of information, how data is protected is forefront inour customers' mind in a cloud-centric world. That's not theforte of Huawei."

In the blog post on Thursday Cisco took pains to make itclear that it did not have a dispute with the Chinese governmentbut rather that it was at odds with a business rival.

"We respect the efforts the Chinese government is making toincrease intellectual property protection," the post said.

"Rather, this dispute involved a very simple claim that onecompany used the other's trade secrets and copyrighted materialswithout permission."

Cisco has been doing business in China since 1994.

(Reporting by Nicola Leske; Editing by Kenneth Barry)

((Nicola.Leske@thomsonreuters.com)(+1 646 223 6134)(ReutersMessaging: nicola.leske.thomsonreuters.com@reuters.net))

Keywords: CISCO HUAWEI/