Shares of Arista Networks Inc. ANET, +4.11% are up 2.7% in Monday morning trading after the company said in a filing that it had entered into a binding term sheet with Cisco Systems Inc. CSCO, +0.82% that result in the dismissal of patent-infringement litigation. Arista will pay Cisco $400 million by Aug. 20, per the terms of the agreement. The two companies have agreed to "a five-year stand-down period as to any utility patent infringement claims either may have against features currently implemented in the other party's products and services," per an Arista SEC filing, with some exceptions for certain acquisitions. Arista shares are up 12.6% so far this year, while Cisco's stock is up 12.1% and the S&P 500 SPX, +0.38% has gained 6.4%.
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