Motorola and Huawei end spat over trade secrets

Motorola and Huawei have announced a joint settlement agreement over lawsuits between the two companies.

As part of the end of hostilities, Motorola will drop its lawsuit against Huawei and Huawei will do the same in its lawsuit against Motorola and Nokia Siemens Networks. They have agreed to not pursure litigation any further over the issues raised in those proceedings.

Motorola will transfer its commercial agreements with Huawei to Nokia Siemens Networks for a fee, therefore legally ending the deal that went sour between the two companies.

The original partnership began in 2000 and Motorola sold a number of Huawei products unders its own name. Huawei was not happy when Motorola sold its wireless business to Nokia Siemens Networks, claiming it was illegally selling on the company's trade secrets. Motorola countersued, claiming that Huawei developed products based on Motorola trade secrets.

The resolution will see Huawei give Nokia Siemens Networks the information it needs to appropriately operate the business it is acquiring from Motorola for an undisclosed sum. Motorola will in turn drop its case.

Huawei said that it has “acted properly and above board at all times” and denied that it made use of Motorola's trade secrets. It added that it was “pleased to move forward”, as was Motorola, which said it regretted that the dispute occurred between it and its partner.

Before the settlement is fully complete a number of conditions must be met by both companies, most of which rest on the withdrawl of the respective lawsuits.