Motorola and Huawei settle trade secret dispute

Reuters News
Posted: Apr 13, 2011 8:53 AM

NEW YORK (Reuters) - Motorola Solutions Inc and China's Huawei Technologies Co have settled a long-running legal dispute over trade secrets, clearing the way for Motorola to complete a related deal with Nokia Siemens Networks.

Motorola and Huawei, in a joint statement on Wednesday, said they would drop lawsuits against one another, which related to claims by Huawei that its trade secrets and intellectual property rights could be at risk.

The issue revolved around Motorola Solutions' plan to sell its networks business to Nokia Siemens, a venture of Finland's Nokia Oyj and Germany's Siemens AG. Huawei claimed that because of its long-term partnership with Motorola the sale could result in the transfer of trade secrets to its rival Nokia Siemens.

The settlement allows Motorola to transfer its commercial agreements to Nokia Siemens, while paying an undisclosed fee to Huawei.

In a separate statement on Wednesday, Motorola Solutions and Nokia Siemens announced they had changed the terms of their deal. Motorola will now pay Nokia Siemens $975 million, rather than the original $1.2 billion, and retain some accounts receivable and the Iden infrastructure business.

(Reporting by Paul Thomasch, editing by Dave Zimmerman)