Jurist DOJ indicts China-based company for conspiring to steal Motorola trade secrets

[Dadparvar]

The Department of Justice Monday partially unsealed a 21-count indictment of China-based telecommunications company Hytera Communications Corp. LTD on charges of conspiring to commit theft of trade secrets of rival Motorola Solutions Inc. The 15 trade secrets, which constitute the core subject of Monday’s federal indictment, pertain to the source code, design and implementation of operation architecture and security functionalities of the digital media radio (DMR) technology developed by Motorola. The indictment alleged that Hytera

recruited and hired Motorola Solutions employees and directed them to take proprietary and trade secret information from Motorola without authorization . . . . [W]hile still employed at Motorola, some of the employees allegedly accessed the trade secret information from Motorola’s internal database and sent multiple emails describing their intentions to use the technology at Hytera.

Finding the case to be prima facie violative of Title 18 USC §§ 2, 1832(a)(3), 1832(a)(4), and 1832(a)(5), the indictment further alleged that between 2007 and 2020 Hytera conspired with the recruited employees in using “[Motorola’s] proprietary and trade secret information to accelerate the development of Hytera’s DMR products, train Hytera employees, and market and sell Hytera’s DMR products throughout the world.”

If convicted and subject to US Sentencing Guidelines and other statutory considerations, Hytera could be required to pay an exemplary criminal fine of three times the value of the stolen trade secret, including Motorola’s expenses for researching and designing the technology as well as other costs avoided.

In February 2020, Motorola won a civil lawsuit in the US District Court for the Northern District of Illinois against Hytera alleging DMR trade secret misappropriation under federal and state law. Motorola was awarded $345,761,156 and $418,800,000 in compensatory and punitive damages, respectively. Hytera’s damages were later reduced to $543.7 million.

Hytea’s arraignment date has not yet been scheduled, according to a press release issued by the US Attorney’s Office for the Northern District of Illinois.

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