Nortel Accuses Repair Contractor Of Counterfeiting

Law360, New York (November 8, 2010, 4:19 PM EST) -- Bankrupt communications company Nortel Networks Inc. is alleging Communications Test Design Inc., a company it contracted to refurbish its digital telephones, illegally used Nortel trade secrets to build phones from scratch and sell $25 million of counterfeit devices to unsuspecting customers.

CTDI has made no attempt to explain its suspect actions from 2005 to 2009, particularly its failure to disclose the sales in its royalty reports, Nortel said Monday at a pretrial conference in the U.S. Bankruptcy Court for the District of Delaware.

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