Intellectual Property Dispute Comes to an End, Hytera and Motorola Reach Settlement
2025-01-20 23:08

Editor's Note:

The litigation dispute case between Hytera and Motorola reflects the complex game of multinational corporations in intellectual property disputes, especially in terms of technology patents and trade secret protection. For the industry as a whole, the case is of great demonstrative significance and provides an opportunity for reflection and reference for ESG practices in the industry. From an ESG (Environmental, Social and Governance) perspective, how an enterprise handles such disputes is not only related to business development, but also reflects its practice in governance and social responsibility. Whether a company is able to achieve compliance management, transparent communication and active fulfillment of social responsibility will directly affect its image and credibility in the eyes of the public and investors.

According to Blue Whale News, recently, the litigation between Hytera (002583.SZ) and Motorola Solutions, Inc. ushered in a new progress. According to Hytera, the two sides have reached a settlement of the previous lawsuit, and said that specific information about the settlement will be further disclosed through official announcements. The settlement marks the end of a years-long intellectual property dispute between the two parties.

Founded in 1993 and listed on the Shenzhen Stock Exchange on 27 May 2011, Hytera is a leading enterprise in the field of private communications in China, as well as a technology leader in the field of global private communications. Relying on its leading advantages in the field of private network communications, Hytera has continued to increase R&D investment in converged communications, intelligent finger-guidance, satellite communications, artificial intelligence, chipset and other technologies, and has formed a product strategy of ‘2+3+1’, which covers the following business areas: PDT/DMR, TETRA narrowband digital products, public-private sector convergence, 4G/5G broadband, and integrated intelligent dispatch and other business areas.

It is reported that the litigation dispute between Hytera and Motorola has lasted for many years. As early as 15 March 2017, Motorola sued Hytera as a plaintiff in the U.S. Federal District Court for the Northern District of Illinois Court for trade secret infringement and patent infringement, arguing that some of Hytera's products infringed on Motorola's trade secrets and involved patent infringement of Motorola's seven U.S. patents. 2 August 2018, Motorola further filed a lawsuit in Illinois Court to filed an additional copyright infringement claim alleging that some of Hytera's products infringed Motorola's U.S. copyrights.

In 2021, the U.S. Department of Justice filed felony charges against Hytera and seven of its employees, including former executive Gee Siong (GS) Kok.The U.S. federal grand jury indictment included 21 counts of federal criminal trade secret infringement, including participation in a decade-long criminal conspiracy to steal and use Motorola Solutions' trade secrets and proprietary information.

Notably, at the same time that Motorola Solutions initiated its infringement lawsuit against Hytera in the United States, Hytera also filed a lawsuit in China against Motorola Solutions' related companies in China. The lawsuit filed by Hytera in China triggered a U.S. court injunction. Subsequently, on 8 April 2024, Hytera announced that "the Company has withdrawn the prosecution of the Shenzhen case, and at the same time suspended the sales of two-way radio technology products as required, and has applied to the U.S. court for the revocation of the above order, which is recently being heard in the U.S. court on an ongoing basis. The company will further take various countermeasures to strive for the shortest possible time to revoke the above decree."

The case progressed slowly, and after many rounds of legal proceedings, eventually in early 2025, Hytera said it had reached a settlement with Motorola, ending a litigation battle between the two sides that had lasted for many years, with the specific terms of the settlement to be further announced by Hytera.

The case has attracted widespread attention, especially against the backdrop of increasingly heated IP disputes between multinational companies. The settlement not only puts an end to a long period of litigation, but also provides a more stable environment for both parties to develop their business in the future.

For Hytera, the settlement will help restore its image and competitiveness in the market, while Motorola Solutions may continue to consolidate its leadership position in the global wireless communications industry by retaining more of its trade secrets and technological advantages.