Hytera, China's leading intercom company: US court suspends sales ban and fines, will resume sales of related products

On April 17, Hytera Communications Corporation (the "Company"), a leading Chinese walkie-talkie company, issued an "Announcement on the Progress of Major Litigation" today. On April 4, 2024, U.S. time, the Company filed an appeal with the United States Court of Appeals for the Seventh Circuit (the "Court of Appeals") against product ban orders, requesting the revocation of the original relevant order of the Federal District Court for the District of Illinois (the "First Instance Court").

In the early morning of April 17, 2024, the Court of Appeal issued an order to suspend the execution of the product sales ban and fines issued by the first instance court against the company, which will take effect immediately. The company will work closely with global partners to immediately resume normal business activities and start sales of related products.

The case is currently still in the appeal stage. The company will take further measures and continue to make every effort to revoke the relevant judgment.

At present, the Court of Appeal has suspended the ban and fines, and there is still some uncertainty about the follow-up progress of the case. The company will strictly comply with the requirements of securities laws and regulations and fulfill its information disclosure obligations in a timely manner. Investors are kindly requested to make prudent decisions and pay attention to investment risks.

According to previous reports by IT Home , this case originated from the trade secret and copyright infringement lawsuit between Hytera and Motorola. Motorola filed a lawsuit in court in 2017, claiming that its former employees had acted as double agents and helped its competitor Hytera in digital wireless walkie-talkie technology. The two sides have since engaged in multiple rounds of bargaining.

In June 2022, Hytera filed a lawsuit with the Shenzhen Intermediate People's Court, claiming that the company's newly designed and developed H series products did not infringe on the trade secrets and copyrights of MOTOROLA SOLUTIONS INC. and MOTOROLA SOLUTIONS MALAYSIA SDN.BHD. (collectively referred to as "Motorola") (referred to as the "Shenzhen Case").

After the case entered the trial stage, Motorola filed a motion for an injunction with the United States District Court for the District of Illinois, requesting Hytera to withdraw the lawsuit in the Shenzhen case. The U.S. court approved the motion on March 25, 2024, temporarily prohibiting Hytera from selling products with two-way radio technology worldwide and imposing a fine of US$1 million per day until Hytera fully complies with the injunction.

Subsequently, Hytera withdrew the lawsuit in the Shenzhen case and suspended the sales of two-way radio technology products as required. It has also applied to the US court to revoke the above-mentioned order.

According to Hytera's official website, Hytera Communications Corporation Limited is a global private listed company headquartered in Shenzhen, China. It was established in 1993 and has 8 R&D centers in China, Germany, Spain and Canada, more than 90 branches around the world, and nearly 10,000 professionals from more than 40 countries, providing special products and solutions to government and industry users in more than 120 countries and regions.

As of the time IT Home published this article, the product list of Hytera's self-operated flagship store on JD.com is empty, but Hytera's Tmall flagship store already has products on the shelves.