U.S. prosecutors allege China-based Hytera Communications hired Motorola Solutions employees and instructed them to steal proprietary information on Motorola’s digital mobile radio technology
hired Motorola Solutions employees and instructed them to steal proprietary information from Motorola on its DMR technology while employed there. The technology is used in radios referred to as walkie-talkies.Prosecutors allege that from 2007 to 2020, the employees recruited by Hytera accessed trade secrets from Motorola’s internal database and sent emails that described their intention to use the technical knowledge gained there to help Hytera.
Hytera and the recruited employees allegedly used the information stolen from Motorola Solutions to speed up the development of Hytera’s DMR product range, as well as to train its employees and sell its products world-wide, according to the court documents.Our Morning Risk Report features insights and news on governance, risk and compliance.The indictment charges Hytera with conspiracy to steal trade secrets and possession of trade secrets.
Hytera, if convicted, could face a fine totaling three times the value of the stolen trade secrets to the company, including expenses for research, design and other costs that it avoided. Mark Hacker, the general counsel and chief administrative officer for Motorola Solutions, said in a statement that the charges against Hytera revealed the “calculated and deliberate character of Hytera’s illegal activity directed at Motorola Solutions.” He added that Motorola would continue to pursue civil litigation against Hytera world-wide and would work to protect its technology.
Motorola won a civil judgment in a trade secret theft and copyright infringement case against Hytera in February 2020, and was awarded $764.6 million. That amount was reduced to $543.7 million last year. Hytera has said it would appeal.
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