Huawei Sues To Hold Up Motorola Wireless Business Sale


Huawei Technologies has filed suit in an attempt to delay the sale of Motorola's wireless network infrastructure business to Nokia Siemens Networks (NSN), saying that the sale would fail to properly protect confidential Huawei company information.

Back in July 2010, Motorola announced the sale of its wireless network infrastructure business to Nokia Siemens for $1.2 billion in cash.

The move was originally expected to be completed by the end of 2010 -- it has been delayed as China's Ministry of Commerce examines antitrust implications -- and will give Nokia Siemens, a joint venture between Nokia and Siemens AG, the No. 3 spot among wireless network infrastructure vendors in the U.S.

Motorola has resold Huawei wireless network products under the Motorola name as part of an agreement between the two companies dating back to 2000, giving Motorola access to Huawei intellectual property and confidential information, Huawei said.

According to Huawei's complaint, filed Monday in U.S. District Court for the Northern District of Illinois (Chicago), Huawei is seeking to stop the sale of Motorola assets to NSN until its claim on intellectual property sees arbitration.

"Since the July 2010 announcement of NSN by its purchase of Motorola's wireless network business, Huawei has tried to ensure that Motorola does not transfer this confidential information to NSN," said Huawei representatives in a Monday statement. "Motorola, however, has not responded with assurances that it will prevent disclosure of that information to NSN. If Huawei's proprietary commercial property and information is transferred to a third party, Huawei will suffer irreparable commercial damage."

Added Huawei: "Motorola's failure to adopt measures sufficient to ensure that Huawei's proprietary information remains confidential has compelled the company to file for the appropriate legal protection of its rights."

Huawei's complaint is against Motorola Mobility Holdings and Motorola Solutions, the two companies into which Motorola split at the beginning of 2011, as well as Nokia Siemens Networks US LLC and Nokia Siemens Networks BV.

Motorola did not respond immediately to requests for comment by CRN.

The company's wireless networks infrastructure business includes a number of product lines and services for GSM, CMDA, WCDMA, WiMAX and LTE networks. All goes to Nokia Siemens in the deal except Motorola's Integrated Digital Enhanced Network Technology and Motorola patents related to the wireless business.

Motorola previously filed suit against Huawei in July, alleging a plot by Huawei to steal Motorola trade secrets.