Motorola, Huawei agree to end legal disputes

News Wireless Global 13 APR 2011
Motorola, Huawei agree to end legal disputes
Motorola and Huawei have agree to end their legal disputes, removing a barrier to the sale of the Motorola networks business to Nokia Siemens Networks. Huawei first announced legal action against the Motorola and NSN deal in January, saying the sale could lead to its trade secrets being passed on to a competitor. Motorola Solutions and and Huawei Technologies said that they have agreed to settle all pending litigation between the two parties, pending the satisfaction of certain conditions. Both companies will withdraw their claims in US federal court in Chicago, and Huawei agreed to allow Motorola Solutions to transfer its commercial agreements with Huawei to NSN for a fee. This allows NSN to receive and use Huawei confidential information to service the networks Motorola deployed worldwide using Huawei's products and technologies. Motorola and Huawei have worked together since 2000, with Motorola reselling certain Huawei products under the Motorola brand. Motorola saids that in ten years it purchased USD 880 million in technology from Huawei that covered core networks and radio access networks. Financial details of the settlement were not disclosed. Huawei's court action contirbuted to a delay in closing of the NSN deal. Motorola and Nokia Siemens are still awaiting approval from Chinese authorities before the sale can be completed. Separately Nokia Siemens said it has agreed to cut the price paid for the Motorola assets to USD 975 million, from the USD 1.2 billion first announced in July 2010. The two companies aim to close the transaction by 29 April, it said.

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