Feeds

Huawei moves to stop Nokia's Motorola grab

We've left our trade secrets in there

The Essential Guide to IT Transformation

Huawei has applied for an injunction to stop Nokia Siemens Networks getting its hands on Motorola, claiming Moto is still stuffed with its trade secrets.

Huawei alleges that Motorola has been reselling its cellular technology for years, having given up doing its own research and development to stick labels on Huawei kit. But that puts massive amounts of Huawei intellectual property on Motorola's shelves, property that will end up in the hands of a significant competitor when Nokia Siemens Networks completes the acquisition of Motorola Solutions.

Motorola Solutions is half of the company formerly known as Motorola, the other half being Motorola Mobility. The latter maintains the (recently healthier) struggling cell phone business, while the former continues the profitable business of providing infrastructure to telecommunications companies, and is being bought by Nokia Siemens Networks (NS) for around $1.2bn.

But Huawei reckons that the transaction, which should be on the edge of completion, will put the intellectual property it shared with Motorola at risk.

In its Illinois District court filing (pdf) Huawei argues that it had no problem sharing with Motorola, whom it didn't see as a competitor, but that the transfer of staff and contracts to NSN will see a significant competitor getting access to its proprietary information, and that its contract with Motorola includes a clause that requires Huawei to approve any change in ownership.

The contested technologies are GSM and UMTS, but Huawei reckons that's a significant part of the business. "On information and belief, the GSM and UMTS businesses consist of approximately 25% of the business to be transferred under the Motorola/NSN Transaction, and account for approximately 1,500 of the approximately 7,500 personnel that would be transferred from Motorola to NSN in the Transaction," says the filing, which also details Huawei's various attempts to settle the dispute amicably.

Huawei is calling for an immediate injunction to prevent the sale going though, and damages for the private information that NSN has already received from Motorola as part of the sale negotiations. ®

Boost IT visibility and business value

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Trying to sell your house? It'd better have KILLER mobile coverage
More NB than transport links to next-gen buyers - study
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.