Bankruptcy Court to Hold Hearing on Sale of Hytera Subsidiaries Dec. 17
Wednesday, December 16, 2020 | Comments

The U.S. Bankruptcy Court for the Central District of California will hold a hearing Dec. 17 on a proposed sale of Hytera Communications’ U.S. subsidiaries to a recently formed Hytera entity.

In May, Hytera America and Hytera America (West), Hytera’s two U.S. subsidiaries, filed for bankruptcy in California. That action followed a jury’s decision in February to award Motorola Solutions $764.6 million in damages after it determined that Hytera had stolen Motorola’s trade secrets and infringed on its copyrights. Following the jury’s decision, Motorola asked the court to implement a permanent injunction that would prevent Hytera from importing, distributing or selling products determined to include Motorola trade secrets.

The U.S. subsidiaries said in court that the large amount of damages awarded to Motorola was the key factor behind the bankruptcy filing. After a search to find buyers for the assets of the U.S. subsidiaries, Hytera asked the company to approve a sale of the assets to the newly formed Hytera US entity.

The court was set to hold a hearing to approve that sale but delayed it following a request from Motorola Solutions. Under federal law, when a bankruptcy case is initiated, a stay is placed on other legal actions involving that entity. Motorola Solutions accused Hytera of using the bankruptcy to delay Motorola’s request for a permanent injunction and continue selling products using Motorola’s trade secrets. Motorola also accused Hytera of “laundering the assets of its subsidiaries” by selling them to the newly formed Hytera entity.

In August, Motorola and Hytera agreed to a limited lifting of the stay from the bankruptcy case so that the permanent injunction could move forward. A district judge for the U.S. District Court for the Northern District of Illinois has not ruled on that injunction yet.

In November, Hytera asked the court to hold a hearing considering the sale. At that time, Hytera argued that Motorola had misled the court into when the permanent injunction hearing would be held. Hytera argued that if a hearing on the sale was delayed any longer, the value of the subsidiaries could continue to decrease.

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