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Huawei Wins Order Protecting Data in Motorola Suit

Huawei Wins Order Protecting Data in Motorola Suit
Attendees walk through the Huawei Technologies Co. booth during the 2011 International Consumer Electronics Show (CES) in Las Vegas. Photographer: Jacob Kepler/Bloomberg

Huawei Technologies Co., China’s largest telecommunications equipment maker, won a court order barring Motorola Solutions Inc. from disclosing confidential information about Huawei’s technology to Nokia Siemens Networks, which plans to buy Motorola’s wireless networks business.

U.S. District Judge Sharon Johnson Coleman in Chicago yesterday issued a temporary restraining order against disclosures by Motorola, according to a court filing. The judge ordered the company to notify the court within 24 hours of any decision by China’s antitrust authorities to approve the pending $1.2 billion acquisition.

Huawei, based in Shenzhen, China, sued Motorola and Nokia Siemens yesterday, saying Motorola hadn’t provided assurances that it would prevent disclosures about Huawei technology and products to its rival Nokia Siemens. Motorola since 2000 has sold Huawei’s wireless-network products under the Motorola name.

Nick Sweers, a spokesman for Schaumburg, Illinois-based Motorola Solutions, declined to comment on the order. He said yesterday that the lawsuit is without merit.

Motorola Inc. spun off its mobile-devices business this month into a new company, Motorola Mobility Holdings Inc. Motorola Solutions provides communications products and services to businesses and governments. It announced plans to sell its wireless-networks unit to Nokia Siemens last July.

‘Massive Disclosure’

Huawei said in its complaint that the transaction would “result in the massive disclosure of Huawei’s confidential information” to a competitor, Nokia Siemens.

This is the first lawsuit Huawei has filed in the U.S., Bill Plummer, a spokesman for Huawei, said yesterday in an interview. The claims include misappropriation of trade secrets, copyright infringement and breach of contract.

Motorola has spent $878 million on Huawei’s technology since the companies formed their agreement in 2000, according to court papers.

Motorola, in a lawsuit filed in Chicago in 2008, accused Huawei of conspiring with former Motorola employees to steal trade secrets.

Carol DeMatteo, a spokeswoman for Nokia Siemens Networks, didn’t return calls today seeking comment on the restraining order. She said yesterday the company doesn’t comment on pending lawsuits.

Motorola Solutions rose 4 cents to $38.70 at 4 p.m. in New York Stock Exchange composite trading. The shares have risen 32 percent in the past 12 months.

Huawei, which is closely held, reported revenue of $21.8 billion in 2009.

The case is Huawei Technologies Co. v. Motorola Inc., 1:11-00497, U.S. District Court, Northern District of Illinois (Chicago).

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