Motorola Solutions has won its federal case against Chinese rival Hytera Communications, with a jury in the U.S. District Court for the Northern District of Illinois concluding that Hytera was guilty of trade secret theft and copyright infringement.
The jury awarded Motorola $765 million in compensation. Of that sum, $345.8 million came in the form of compensatory damages, while the remainder—$418.8 million—came in the form of punitive damages.
“Today’s verdict is a tremendous victory for our company,” said Motorola Solutions chairman and CEO Greg Brown.
“Motorola Solutions has always invested significantly in research and development to bring pioneering and beneficial technology to our customers around the world. In contrast, Hytera was simply profiting off of the hard work and innovation of our world-class engineers.
“The jury’s verdict validates our global litigation against Hytera by definitively affirming that stealing trade secrets and source code will not be tolerated.”
Motorola’s complaint against Hytera, once a distributor of Motorola products, was filed in March 2017. In that complaint, Motorola accused the Chinese company of applying stolen trade secrets to its two-way radios. In July 2018 Motorola further accused Hytera of copying its source code.
Mark Hacker, general counsel and chief administrative officer, Motorola Solutions, called Hytera “deceptive” in a statement praising the verdict.
“We are pleased that, as in other jurisdictions around the world, the jury in the U.S. District Court for the Northern District of Illinois found that Hytera intentionally violated the law by misappropriating and infringing Motorola Solutions’ intellectual property,” Hacker said. “We remain committed to defending our valuable intellectual property and ensuring that Hytera is punished for its deceptive and illegal acts as we continue delivering exceptional products and solutions for our customers.”
Needless to say, Hytera was not thrilled with the verdict and, according to company spokesman Dylan Liu, plans to appeal the decision.
“Hytera is disappointed by the jury’s verdict,” Liu said. “Hytera respectfully disagrees with the jury and is currently considering pursuit of all appeal options.”
That said, Business Wire reports that during the trial Hytera confessed that it has in its possession thousands of confidential documents belonging to Motorola Solutions, and moreover that some of its current products contain source code stolen from Motorola Solutions.
The verdict represents a major victory for Motorola, but the company isn’t finished yet. It now aims to stop Hytera from “misappropriating” the stolen trade secrets going forward. Furthermore, there is still a pending infringement case in which Motorola alleges that a number of Hytera products infringe seven patents owned by Motorola.