Motorola, Huawei Settle Dispute Over Nokia Siemens Networks Deal
Motorola, before it had split into Motorola Solutions and Motorola Mobility earlier this year, had in July 2010 announced the sale of that piece of its business to Nokia Siemens for $1.2 billion in cash. Huawei filed suit against Motorola in January to attempt to delay the sale, saying that it would fail to properly protect confidential Huawei company information.
Motorola has resold Huawei wireless network products -- about $880 million in total core network and radio access technology over a decade, according to the vendor -- as part of an agreement between the two companies dating back to 2000.
Financial terms of the settlement weren't disclosed, but according to a statement, Huawei will receive a fee from Motorola to allow Motorola to transfer its Huawei contracts to Nokia Siemens. Nokia Siemens will receive and be able to use confidential Huawei information to service the network business it receives from Motorola.
The cases, pending in U.S. District Court in Chicago, will be dismissed "with prejudice," the companies said, meaning they can't be re-filed in the future.
"We regret that these disputes have occurred between our two companies," said Greg Brown, president and CEO of Motorola Solutions, in a statement. "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. I am pleased that we can again focus on having a cooperative and productive relationship."