"No selling! $1,000,000 a day!"
This is a verdict from the United States, and the severity of it is staggering. It is reported that the target of this global ban is actually the Chinese communications giant Hytera. A paper order directly cut off the international lifeline of this enterprise. Let's take a look at this sensational walkie-talkie patent war and get a glimpse of more of the inside story of this international litigation battle.
Replay: The Roots of the U.S.-China Walkie-Talkie War
In 2017, the patent war of the century has begun. U.S. telecommunications giant Motorola filed a lawsuit in Illinois against Hytera and its subsidiaries, accusing the latter of infringing its trade secrets. The following year, Motorola reprimanded Hytera for copyright infringement.
Two years later, in February 2020, it ruled that some of Hytera's DMR products were indeed infringing and ordered it to pay Motorola up to $765 million in damages. Although Hytera was allowed to reduce the compensation to $543 million in December, it was still a huge loss.
Regarding this patent dispute, both parties insisted on their own views and were not to be outdone. In June 2022, Hytera filed a lawsuit in China with the intention of overturning the infringement allegations. But this clearly angered the Motorola side.
Interlude: All-round game
Previously, patent disputes between the two sides have started wars in many parts of the world. In 2015, Hytera was jointly attacked by Motorola and other companies in the Remmen bid in the Netherlands; In 2017, Motorola filed patent infringement lawsuits against it in Australia and Germany.
The situation is at a stalemate, and the two sides are inseparable. It wasn't until the latest ban came out that the situation escalated suddenly.
Insider: What exactly is banned?
This decree from the local state of Illinois has given Hytera an unprecedented "heavy blow":
1. Hytera and its affiliated sales channels are prohibited from selling, importing, exporting, or distributing any walkie-talkie technology products.
2. Require Hytera's official website to announce the ban, notify all terminal channels and customers, and ensure that its subsidiaries and agents comply with it.
3. Violation of the ban will result in a sky-high fine of $1 million per day.
4. Hytera is prohibited from seeking any support from China.
A piece of paper decree directly cut off the global business lifeline of Hytera, a Chinese communications giant. It is not allowed to sell goods, there is no room for manoeuvre, and for the time being, it is impossible to seek support in China, let alone business development?
Analysis: Can the law really be "thoroughly enforced"?
After receiving this decree, Hytera chose to announce the implementation of the decree first. However, the author believes that this seemingly "lion's mouth" ban may be subject to many constraints at the real implementation level.
This is a unilateral U.S. ruling that lacks international arguments. In today's world, China and related companies will inevitably take countermeasures.
Once this ban is actually implemented, it will be tantamount to cutting off the dependence of many public safety systems around the world on Hytera's professional walkie-talkie equipment. Is this reasonable? Fair?
As a communications equipment giant, Motorola does master the core technology, but at the same time, there may also be doubts about "abuse of market power". Therefore, all stakeholders will reconsider the game to avoid further escalation.
In the face of this ban, it is not difficult to find that Motorola's methods have gone far beyond an ordinary commercial dispute. It seems to want to use the power of the law to completely stifle Hytera's development in the field of walkie-talkies.
Looking back at the ins and outs of this patent war of the century, we will find that the two sides are evenly matched, and both have won a phased victory in the international tribunal. However, Motorola is so ruthless this time, in addition to protecting its own interests, it is likely that it has other deeper purposes.
On the one hand, as a traditional communications giant, Motorola is undoubtedly aware of the growing competitive pressure from Chinese technology companies. Therefore, it hopes to curb the pace of development of companies such as Hytera through unusual means.
On the other hand, it may also be a means for the United States to suppress Chinese technology companies. As we all know, in recent years, the technology war between China and the United States has gradually become white-hot, and companies such as Huawei and ZTE have been repeatedly suppressed. Now, it is the turn of Hytera, a company focusing on the field of walkie-talkies.
Regardless of the motives, this practice is contrary to the principle of fair competition. In today's rapid development of science and technology, no enterprise should attempt to monopolize core technology and hinder the development of others. On the contrary, we should pursue openness and cooperation to achieve win-win results.
China and related companies should compete with this draconian ban and not give in easily. After all, this is about the living space of China's technology companies, and it is also about the improvement of their own scientific and technological strength.
We also hope that the United States will act prudently and avoid escalating commercial disputes to a higher level. Under the general trend of global integration, any party that occupies an absolute monopoly position will come at the cost of sanctions. Only on the basis of mutual respect and fair competition can scientific and technological innovation continue to advance.
It is not yet known whether the two major telecommunications giants of China and the United States will be able to end the war of the century and move toward reconciliation? Or will they fight again and again and further intensify the contradictions? It is best to seek a fair and reasonable solution within the framework of rules and international rules. We sincerely hope that the two sides will resolve the crisis in a timely manner and avoid the continued spread of bad luck in the walkie-talkie industry.