Chinese walkie-talkie maker Hytera resumes sales of two-way radio products after US court suspends global ban

by

The US Court of Appeals for the Seventh Circuit on Tuesday suspended the global sales injunction, worldwide notice requirement and further accumulation of US$1-million-per-day fines against Hytera that was ordered by the US District Court for the Northern District of Illinois earlier this month, according to a notice on the Shenzhen-based company’s website.

“The company will work closely with global partners to immediately resume normal business activities and initiate the sale of related products,” Hytera said in a filing to the Shenzhen Stock Exchange.

Hytera’s shares rose by the daily maximum limit of 10 per cent on Wednesday, following the stay of the global sales ban.

Two-way radio products make up the bulk of Hytera’s professional wireless communications business. Its PNC460U smart push-to-talk-over-cellular device is designed for use in hazardous environments like chemical plants, oil refineries and steel mills. Photo: Hytera

The US District Court for the Northern District of Illinois on April 2 temporarily enjoined Hytera from the global sales and distribution of its two-way radio products, pending the Chinese firm’s full compliance with the US court’s anti-suit injunction orders. Hytera announced on April 7 that it had suspended sales of those products in compliance with the court’s order.

The products covered by the sales injunction – “including portables, mobiles, base stations and repeaters”, according to the court order – contain two-way radio technology, which is at the centre of Motora Solutions’ trade-secrets and copyright-infringement dispute against Hytera. US telecommunications equipment specialist Motorola Solutions is an independent business from smartphone maker Motorola Mobility, which was acquired by Lenovo Group in 2014.

Hytera, however, warned of potential uncertainties in the development of the case. “The case is still in the appeal stage, and the company will take various countermeasures and make the best efforts to revoke the [ban],” the firm said.

US adds 33 Chinese firms to red flag list, unseals Hytera indictment

A global sales ban on its two-way radio systems would pose a significant blow to Hytera, which generated 83 per cent of its 2022 revenue from professional wireless communications devices that largely comprise two-way radio products.

Schaumburg, Illinois-based Motorola Solutions initiated its court dispute against Hytera in 2017, accusing the Chinese firm of recruiting and hiring the US company’s employees and directing them to take proprietary information and trade secrets without authorisation.

After it was indicted by the US Justice Department in early 2022, Hytera filed a case with the Shenzhen Intermediate People’s Court later that year and sought a ruling that its new H-series products do not infringe Motorola Solutions’ trade secrets and copyrights.

In March this year, the US district court ruled that Hytera’s litigation in Shenzhen was in contempt of its sanctions and issued anti-suit injunction orders to force Hytera to drop that mainland case. Hytera on April 8 said that it had dropped its case in Shenzhen.

Read original article here

Denial of responsibility! Pioneer Newz is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a Comment