New Hytera suit accuses Motorola of abusing market dominance in US

Tuesday 5 December 2017 | 09:06 CET | News
Update: 6 December 2017 | 09:28 CET
Hytera has filed a suit in the federal district court of New Jersey against Motorola Solutions, saying that Motorola Solutions is engaging in anticompetitive practices around land mobile radio (LMR) communications systems, forcing US customers to pay a surcharge for safety. 

Specifically, the complaint alleges Motorola Solutions is preventing Hytera from competing in the US marketplace and preventing customers from opting for Hytera’s lower prices and similar best-in-class features. Hytera also alleges Motorola Solutions is abusing its dominance in the US public safety market to slow the adoption of new, less expensive technologies and that it is engaging in a serial pattern of sham litigation to impede Hytera and interfere with its relationships with dealers and customers. Together, this means Motorola Solutions is forcing US customers to pay artificially high prices for critical communications. 

Hytera said noted that US customers are getting charged more than those in competitive markets outside the US. For example, a P25-compliant radio cost a city in Arizona USD 5,290, nearly five times the price charged in the UK for a comparable Tetra product. Hytera’s complaint provides the example of two competing professional DMR handsets with similar features and functionality, but with a high price difference: Motorola Solutions’ carries a suggested retail price (MSRP) of USD 738, against Hytera’s MSRP of USD 440.

The complaint was brought by Hytera (Shenzhen, China), PowerTrunk (Jersey City, New Jersey), Hytera America (Miramar, Florida), Hytera Communications America West (Irvine, California), and Sepura (Cambridge, UK), which together allege that by foreclosing competition from Hytera’s DMR and Tetra solutions, Motorola Solutions is able to maintain inflated pricing in the US on its P25-compliant products. 

Motorola Solutions responded to the claim, telling Telecompaper the complaint is without merit and a “clear attempt to shift attention away from the heart of the dispute -- Hytera's brazen theft of our trade secrets and willful infringement of our patents.” Motorola said it will continue to vigorously pursue its ongoing global efforts to protect its intellectual property from Hytera’s actions.

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