Motorola Chinese company verdict, Wins $764M In Radio Trade Secret Trial

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Motorola Chinese company verdict, Wins $764M In Radio Trade Secret Trial.

Motorola Solutions won a major trade-secret theft verdict against Chinese competitor Hytera Communications, which was accused of stealing technology used in handheld radios.

A federal jury in Chicago found Hytera guilty of stealing trade secrets and copyright infringement, Motorola said. The jury awarded Motorola total damages of $765 million, including $419 million in punitive damages.

“Today’s verdicts are a tremendous victory for Motorola Solutions and a clear repudiation of the illegal and anti-competitive tactics employed by Hytera over the last decade,” a Motorola spokesman said in a statement.

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The company has asked for an injunction to prevent Hytera from selling products that use Motorola’s technology.

“Hytera is disappointed by the jury verdict in this case,” a company spokesman said. “Hytera respectfully disagrees with the jury and is currently considering pursuit of all appeal options.”

Motorola sued Hytera in 2017. Motorola accused Hytera Communications, a small Chinese electronics company, of hiring three Motorola Solutions engineers who were working in Penang, Malaysia. Motorola says the men secretly took about 10,000 documents containing some of the company’s most important technology, including source code for software, which allowed its competitor, Hytera, to launch its own line of hand-held radios that it had been unable to build.

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The trial began Nov. 6 and went to the jury today.

“This was incredibly fast,” Brandon Brown, a partner at Kirkland & Ellis who tried the case, said of the verdict. “It reflects the power of the evidence. There were documents that laid out their whole plan to systematically steal Motorola Solutions’ intellectual property and conceal that theft for a decade. Hytera had been denying that any of the source code was in their products. At trial, their vice president of R&D admitted to it on the stand.”

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A related patent-infringement case is expected to go to trial late this year or early next year. Motorola has won other patent infringement cases against Hytera outside the U.S.

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