Judges Determines Royalty Amount for Hytera to Pay Motorola
By Danny Ramey, Editor
Tuesday, December 21, 2021 | Comments

A judge for the U.S. District Court of the Northern District of Illinois set the royalties Hytera Communications will be required to pay Motorola Solutions for use of Motorola’s trade secrets in its Digital Mobile Radio (DMR) products.

In 2017, Motorola sued Hytera for theft of trade secrets and copyright infringement and in 2019, an Illinois jury awarded Motorola $764.6 million in damages after determining that Hytera had used Motorola trade secrets in its products.

Following that verdict, Motorola asked District Judge Charles Norgle for a permanent injunction against Hytera that would prevent it from importing, distributing or selling any products found to include Motorola’s trade secrets in the U.S. Norgle rejected that motion and instead ruled that Hytera pay a royalty for its continued use of Motorola trade secrets and asked the parties to offer briefings on an appropriate amount for the royalty.

After reviewing those findings, Norgle set a royalty of $80.32 per radio and $378.16 per repeater. Hytera will be required to make the payments on a quarterly basis for any relevant sales in the previous quarter and its first payment will include royalties for sales from July 1, 2019 through the quarter those payments begin in.

Until all appeals of the case are concluded, Hytera will be required to make royalty payments to an escrow account. The judge also required Hytera and Motorola to file a proposed royalty agreement for his approval by January 31.

The judge’s order also requires Hytera to maintain the confidentiality of Motorola’s trade secrets and copyrights.

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