Recently, Shenzhen Hytera Communications Co., Ltd. (hereinafter referred to as "Hytera"), a global leader in the field of private communications, released an announcement on its official website that shocked the industry. According to a U.S. court order, Hytera was required to stop selling any products containing walkie-talkie technology worldwide without receiving further notice, the announcement said. This severe global ban marks a new climax in the protracted patent dispute between Hytera and its U.S. competitor Motorola, and has had a profound impact on Hytera's global business layout and market position.
The cause of the incident can be traced back to many years ago, when Hytera and Motorola were involved in a trade secret and copyright infringement dispute. Motorola accused Hytera of infringing its trade secrets and copyrights with its "H series" radio products, arguing that Hytera had used Motorola's technology and intellectual property rights without permission. The dispute quickly escalated into a cross-border legal battle, with the parties engaged in a series of litigation battles in different jurisdictions.
As early as March 2020, the U.S. District Court for the Northern District of Illinois issued a first-instance judgment in the case, upholding the jury verdict and ordering Hytera to pay Motorola a huge amount of RMB 5.3 billion in damages, on the grounds that Hytera and its U.S. subsidiaries had stolen Motorola's trade secrets. Hytera subsequently appealed the verdict, but the legal battle between the two parties did not subside.
Recently, the U.S. District Court for the Northern District of Illinois has taken more stringent legal measures against Hytera. According to the original text of the court's decree, Hytera was found to have shown contempt of court for failing to comply with the court's request to withdraw and withdraw its countersuit injunction filed by the Intermediate People's Court of Shenzhen Municipality in China on whether the H-Series infringed Motorola's trade secrets and copyrights. The ruling triggered stricter sanctions, requiring Hytera not only to immediately stop selling all products containing two-way radiocommunication technology worldwide, but also to impose a daily fine of US$1 million in US courts before complying with the relevant anti-suit injunction.
The pressure on Hytera goes far beyond that. The court ordered Hytera to notify its agents, affiliates, subsidiaries, distributors, distributors, customers, and potential customers worldwide in writing of the effectiveness of the court injunction, and to require these entities and individuals to strictly comply with the injunction. In addition, Hytera is required to publicize the content of the injunction in a conspicuous position on its official website and submit evidence to the court within five working days to prove that it has fulfilled its notification obligations. This series of measures has undoubtedly posed a huge challenge to Hytera's daily operations and market reputation.
In the face of the sudden global ban, Hytera responded quickly, and all related products on major domestic e-commerce platforms have been removed from the shelves to avoid violating the orders of the US courts. However, this ban has dealt a substantial blow to Hytera's global operations. As a leading supplier of intelligent special communication equipment and solutions, Hytera's products are widely used in many key fields such as public safety, emergency rescue, and rail transit. The ban will not only cut off its main source of revenue, but will also have a knock-on effect on its supply chain partners, global market share, and customer relationships.
How Hytera responds to this grim situation has become the focus of attention in the industry. On the one hand, the company needs to actively communicate with the U.S. court to seek the early lifting of the prohibition or seek a settlement agreement to reduce the financial burden and resume global sales. On the other hand, Hytera may need to accelerate R&D and innovation, and seek technical solutions with independent intellectual property rights to reduce its dependence on Motorola's patented technology. At the same time, we will strengthen compliance management to ensure strict compliance with local laws and regulations on a global scale to avoid the recurrence of similar legal risks.
The global ban on sales of Hytera is a wake-up call for the dedicated communications industry and the entire technology sector. It highlights the importance of IP protection in global competition, as well as the complex legal environment faced by multinational companies in dealing with international litigation. This case warns other enterprises to attach great importance to IP compliance, strengthen independent research and development, and properly handle IP disputes with competitors to avoid falling into similar difficulties.