Motorola And Huawei Settle Patent Lawsuit

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In case you hadn’t heard, Motorola Solutions and Chinese telecommunications company Huawei Technologies have been embroiled in a nasty patent lawsuit. In January, the Chinese company has filed a lawsuit to prevent Motorola from giving Nokia Siemens (which acquired Motorola’s wireless network for $1.2 billion last year) Huawei’s IP information. Today, Motorola and Huawei have issued a joint statement announcing that the two companies have settles all litigation. Both parties have agreed to withdraw and dismiss their claims from the courts.

Huawei has actually entered an agreement with Motorola Solutions and Nokia Siemens that allows Motorola Solutions to transfer its commercial agreements with Huawei for a fee, and allows Nokia to receive and use Huawei confidential information revealed to Motorola. Financial terms of the deal were not disclosed. And Motorola is also dismissing a prior complaint filed against Huawei, which alleged that the Chinese company was conspiring to steal trade secrets from former Motorola employees.

The backstory is that Huawei was claiming that because Motorola and the company has a previous licensing relationship (worth $880 million), Motorola’s wireless networking unit was provided with details on Huawei’s confidential intellectual property. Huawei was trying to ensure that Motorola does not transfer this confidential information to Nokia. Motorola, Huawei contended, did not provided any assurances that it will prevent disclosure of that IP information to Nokia and if this transfer of information did happen, Huawei would suffer from this.

It appears that Motorola ponied up the funds to pay off Huawei in this suit. In February, Huawei won a court order preventing Motorola from transferring the Chinese telecom-gear maker’s intellectual property to Nokia Siemens.

Greg Brown, President & CEO of Motorola said in a statement: “We regret that these disputes have occurred between our two companies. Motorola Solutions values the long-standing relationship we have had with Huawei. After reviewing the facts, we decided to resolve these matters and return to our traditional relationship of confidence and trust.”