Motorola Asks Court to Hold Hytera in Contempt for Not Paying Royalty
Monday, August 15, 2022 | Comments

Motorola Solutions asked an Illinois district judge to hold Hytera Communications in contempt of court after Hytera failed to make its first court-mandated royalty payment.

“Unless Hytera is held in contempt and subjected to harsh contempt sanctions, there is no doubt that Hytera will continue to make a mockery of these legal proceedings by continuing to simply decide not to comply with this Court’s orders whenever it chooses,” Motorola’s filing with the court said.

In 2017, Motorola sued Hytera for theft of trade secrets and copyright infringement and in 2019, an Illinois jury awarded Motorola damages after determining that Hytera used Motorola trade secrets in its Digital Mobile Radio (DMR) products. Following that, Motorola asked District Judge Charles Norgle to implement a permanent injunction against Hytera that would prevent it from importing, selling and distributing products found to include Motorola’s trade secrets.

Norgle denied that motion and instead ordered Hytera to pay a royalty to Motorola for every product sold that includes Motorola’s trade secrets. Last month, Norgle ordered Hytera to begin paying the royalty. Because both sides have filed appeals in the case, Norgle ordered that the royalties be paid into an escrow account, which would then be distributed to Motorola if all of the appeals end in its favor.

At the start of August, Hytera said it was unable to make the first royalty payment and asked the judge to allow it to deposit stock shares into the escrow account instead of cash.

As punishment for not making the payment, Motorola asked Norgle to prevent Hytera from selling any radio equipment, even if it is not equipment that includes Motorola trade secrets, until the full amount of royalties due are paid into the escrow account. Additionally, Motorola said that Hytera should have to pay a penalty of 100% of the overdue royalties and that any assets Hytera has in the U.S. should be seized and sequestered.

“Precisely what Motorola repeatedly predicted would happen has come to pass: Despite successfully asking the Court not to enjoin its ongoing sales of stolen Motorola technology throughout the world based on a promise to pay court-ordered royalties to compensate Motorola for the undeniable harm those ongoing worldwide sales have caused Motorola since the jury’s verdict in early 2020, the court’s deadline to make the first payment of nearly [redacted] has come and gone, without Hytera paying even a single penny into escrow,” Motorola’s filing said.

Motorola noted that Hytera had recently sold its shares in Sepura to a private equity company. It noted that the $180 million Hytera raised from that sale could go to help pay its debt but none of it had.

“Despite its loss at trial and indictment for theft, Hytera has faced no consequences because it freely flouts the court’s orders as nothing more than words on a page,” Motorola’s filing said. “It is time to hold Hytera accountable.”

Hytera has not yet responded to Motorola’s request for the court to find it in contempt.

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On 8/19/22, Michael Garrett said:
Having worked for Hytera for almost 13 years it isn t surprising that they just ignore the court order. Whenever there was an issue be it equipment not performing as presented quality of a product or even employee problems it seemed to be company policy to just ignore issues they did not want to mess with. I m still surprised the courts let them declare bankruptcy in the US and then buy themselves. It s the same people same company. Only the name has changed. They lie they lie they lie I hope Moto is successful and shuts them down in the US.


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