Cisco Systems
Cisco Systems ()

Cisco Systems reached an agreement Thursday with patent firm Innovatio IP Ventures to end a legal battle over Wi-Fi patents that targeted thousands of individual chain hotels and coffee shops offering Internet access.

Under the settlement, Cisco will pay $2.7 million to protect customers using 170 million Cisco devices. Innovatio admitted that over 100 million of the accused devices were already licensed and agreed to be paid 3.2 cents per wireless device for the remaining 85 million units, according to a blog post by Cisco General Counsel Mark Chandler.

Wrote Chandler, “We’re pleased to announce today that we’ve achieved full protection for millions of Cisco customers from the overblown and specious claims of a very aggressive patent assertion entity.”

Beginning in 2011, Innovatio sent out over 14,000 letters to these individual businesses demanding between $2,300-$5,000 in licensing fees, according to Ars Technica. As the dispute escalated, Cisco joind with Netgear and Motorola Solutions in a civil racketeering suit against Innovatio, which failed.

Cisco is represented by Kirkland & Ellis. Chicago-based plaintiffs IP firm Niro, Haller & Niro represents Innovatio.

In a filing on Thursday in U.S. District Court for the Northern District of Illinois, Cisco and Innovatio asked the court to dismiss with prejudice claims and counterclaims in two pending suits. The parties also asked the court to dismiss all claims made by Innovatio against Cisco customers in the dispute.