Palo Alto to Pay $151M for Threat Protection Tool Patent Infringement

Centripetal Networks, a cybersecurity company, has emerged victorious in a court battle against competitor Palo Alto Networks. On February 1, 2024, a federal jury in Virginia ruled in favor of Centripetal, awarding them $151.5 million in compensation.

The jury concluded that Palo Alto had infringed upon Centripetal’s patent rights. Specifically, the jury found that Palo Alto’s cybersecurity technologies incorporated elements developed by Centripetal. At the heart of the dispute were four patents related to Centripetal’s computer network protection system known as the “Threat Intelligence Gateway.”

Palo Alto representatives have expressed their disagreement with the jury’s decision, contending that it goes against both the law and the evidence presented during the trial. The company plans to appeal the verdict.

Centripetal initially filed the lawsuit against Palo Alto in 2021. The complaint alleged that Palo Alto’s Cortex cybersecurity platform, as well as its next-generation inter-grid screens and other products, infringed upon Centripetal’s patents regarding cyberosis blocking.

In addition to seeking financial compensation, Centripetal sought an injunction to prevent Palo Alto from using the patented tools in the future. Palo Alto, on the other hand, claimed that their products operate differently and argued that the patents themselves were invalid.

Centripetal Networks was established in 2009 and is headquartered in Virginia. The company’s flagship product, the SmartClean platform, enables the analysis of network traffic and the detection of malicious activity. Centripetal primarily serves large financial and public organizations in the United States. In 2019, the company generated approximately $80 million in revenue.

This victory in the patent dispute marks another significant achievement for Centripetal. In 2020, the company prevailed in a case against Cisco Systems, securing a landmark $2.75 billion settlement. However, the decision was later overturned on appeal, and Cisco ultimately prevailed after a revisitation of the case.

/Reports, release notes, official announcements.