Airvana, a maker of broadband network technology, contended that Ericsson violated key contract terms by developing in-house a "knock-off" product based on Airvana technology, which could then be sold to wireless carriers Verizon and Sprint.
"If Ericsson is able, even temporarily, to displace Airvana with a wrongfully developed 'in-house' product, Airvana will face an immediate and precipitous decline in its revenues and may be rendered unable to meet its obligations," said the complaint filed Wednesday in a New York state court in Manhattan.
Ericsson, a Swedish company, was not immediately available for comment. Airvana is based in Chelmsford, Massachusetts.
(Reporting by Jonathan Stempel in New York; Additional reporting by Nicola Leske; Editing by Lisa Von Ahn)