Airvana Sues Ericsson for Stealing, Developing 'Knock-off' Technology

US based wireless telecom equipment maker Airvana Network Solutions Inc. has filed a lawsuit seeking $330 million in compensation from Swedish technology outfits Ericsson Inc. and Ericsson AB.

The Chelmsford-based company is accusing the duo of taking shelter in unfair business practices in order to acquire a key technology and co-develop a product in collaboration of a Korean firm that would compete in the market with one of Airvana's own products.

The lawsuit was filed in the State Supreme Court in New York, and it appeals for the court's intervention in banning the sales of the Ericsson product in question. Apparently, Airvana's lawsuit claims that Ericsson AB and Ericsson Inc. were both violating their contract with the company by secretly developing software designed for running on a new hardware based on Airvana inspired designs.

"Ericsson's behavior is a classic example of a giant multi-national using its size and position to extract the profits from a smaller, innovative American company," Randy Battat, Airvana's president and CEO, said in a statement, reports Boston Herald.

"They are brazenly doing so in violation of both our contractual agreement with them and the trust we placed in them when we licensed our proprietary technology," he added.