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Cereva 1 -- Pirus 0

Pirus Networks has lost the first round in its courtroom battle with Cereva Networks Inc.

But this fight isn't over. Pirus now plans to move the case to trial. The struggle, over an alleged breach of contract, turns up the heat between the two companies before either has even brought a product to market.

It seems a little extreme of Pirus to take this case to trial when there are so many people out on the market now,” says Dan Tanner, analyst with the Aberdeen Group. “This guy must be good.”

On October 11, in the Middlesex Superior Court, Cambridge, Mass., a judge ruled in favor of Cereva in its breach of contract suit against Timothy Lieto, its former head of sales and business development, preventing him form working for Pirus (see Cereva Skids to a Halt).

By taking the job at Pirus, Cereva claims Lieto is breaking the one year no-compete clause in his contract. He still has nine months left on the contract before he can seek employment with a competitor. And this is where it gets complicated, as exactly who competes with whom in this fledgling market isn’t altogether clear yet.

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