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Huawei and Motorola had a working collaboration since 2000, but their friendship went kaput after Nokia Siemens bought Motorola’s wireless networking business last year for $1.2 billion. This all started last year when Motorola sued Huawei for allegedly stealing technology. Now it’s pay-back time for Huawei who are suing Motorola to prevent the US phone maker from transferring its intellectual property to Nokia.
There have been many cases of US based companies suing Chinese vendors for infringement of intellectual property, but this is a unique case where a Chinese telecom equipment maker is taking legal action against a US giant.
Motorola was reselling Huawei wireless network products under its brand before it found new love in Nokia. Huawei had shared classified IP information with Motorola during their courtship, which they fear will be passed on to Nokia after the new alliance.
The cold shoulder from Motorola prompted Huawei to move to court as stated in a release, “Motorola, however, has not responded with assurances that it will prevent disclosure of that information to NSN. If Huawei's proprietary commercial property and information is transferred to a third party, Huawei will suffer irreparable commercial damage.”
Motorola’s spokesperson, Nicholas Sweers alleged “this lawsuit is without merit”
Huawei somehow wants the court to axe the $1.2 billion deal as Nokia’s purchase of the networking business from Motorola will bring new competition for Huawei in the form of Nokia. A judge has so far order the deal to be put on hold until this dispute is settled.
Intellectual property infringement is widespread, but the Shanzhai are often blamed the most. This time Motorola has turned Shanzhai, giving the original Shanzhai a chance to sue them.
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