Preface
From the issuance of global sanctions by the United States on April 2 to the resumption of normal sales on the 17th, it took only 15 days for Chinese communications giants to break free from the sanctions imposed by the United States.
15 days to "unwrap" the global ban
On April 2, 2024, Hytera, a mainland communications giant known as the "king of walkie-talkies" and "little Huawei", received an injunction from the U.S. District Court for the Northern District of Illinois:
Hytera issued a contempt order for failing to comply with the court's request to withdraw and withdraw the lawsuit it filed with the Shenzhen Intermediate People's Court in June 2022.
The sanctions order mainly include a $1 million per day fine and a "global ban" on Hytera until Hytera drops its lawsuit against Motorola in China.
Therefore, on April 7, Hytera announced on its official website that due to sanctions from the United States, the company's walkie-talkie product business in the world was temporarily suspended, and we could not find Hytera's products on major e-commerce platforms in China.
As soon as the news came out, there was an uproar all around, which was a blow to Hytera's confidence in the domestic stock market, and it fell again and again. ”
But looking at the aggressive global sanctions imposed by the United States, even Hytera's loyal supporters can't help but break out in a cold sweat for it.
However, just when people were worried about Hytera's future, only half a month later, Hytera broke through the US blockade and re-launched the shelves.
On January 17, 2024, Hytera officially announced that the U.S. Court of Appeals would suspend the enforcement of Hytera's product bans and fines, and Hytera's products on major platforms have also made a comeback.
With the announcement of the information, Hytera's stock also achieved a super rebound, and the price limit was opened on April 17, and netizens and shareholders were immersed in the joy of Hytera's "breaking free at the speed of light".
How did Hytera break free from US sanctions, and why did the United States show mercy to Hytera?
Behind the lifting of the ban
Looking back at the dispute between Hytera and the U.S. courts and Motorola, it can be described in one sentence:
A U.S. court has asked a Chinese company to drop its lawsuit against the U.S. company Motorola filed in a Chinese court.
For example, two children in China and the United States (Hytera and Motorola) are vindictive, and then each "sues the parents" (the courts of the two countries), and the American parents ask the Chinese children: Stop this matter, you can't complain to your mother anymore! Otherwise, you will be punished for writing texts 100 times a day, and you will not be allowed to eat.
The obviously eccentric handling of this "parent" fully demonstrates his domineering, brutal, and domineering character traits, but it is regrettable that this child in China is "eating" in the United States as if he was in a nursery school.
And the reason why Hytera was able to solve the problem this time,
First, because of the invisible pressure on the United States from China's hard-line backstage;
Second, Hytera implicates the entire industrial chain in the U.S. market, and Hytera's "shutdown" will also have an impact on the U.S. economy.
The last point is that Hytera's choice to file a petition with a Chinese court to withdraw the complaint against Motorola has also given the US court and the market a "step".
Give you a step to hurry down, so that you can only lose both. Therefore, the U.S. Court of Appeals announced the suspension of Hytera's global ban just 15 days later.
After this game, it can be said that Hytera won the Lizi and the U.S. court won the face, which is an acceptable result for each side.
But then again, what did Hytera, as a "walkie-talkie seller", do, that caused Motorola to bite it tightly, and even spread to the judicial contest between the two countries?
Origin of the ban: The rise of Hytera
In fact, the essence of the incident is nothing more than a bloody case caused by a cake.
On May 11, 1993, Hytera was established in Shenzhen and launched its first domestic walkie-talkie C160 in 1995.
Due to advanced technology and solid workmanship, Hytera quickly seized the market and entered the United States in 2004, intending to earn "US dollars!"
As of 2022, Hytera has sold 1.499 million walkie-talkies at a unit price of US$161, ranking among the top three in the world in terms of market share.
Hytera's rapid growth momentum gradually attracted the attention of Motorola, the "leading brother" of walkie-talkies, and they launched a comprehensive investigation of Hytera to find out the bottom of this outsider.
As a result, Motorola discovered that the technology applicable to Hytera's products was similar to its own thief! Motorola, which had already been cut off by Hytera in the market, immediately sued Hytera to the Yamen.
Hytera's "bigger and stronger" is the fuse that has attracted the attention of opponents, especially a Chinese company that wants to go to the United States to make money, and has been "watched" from the moment it stepped into the United States.
And Motorola's paper complaint also officially opened the years-long lawsuit war between the two companies.
Walkie-talkie wars that don't give in to each other
The biggest feature of this long round of "lawsuits" is that "each goes back to his own home, and each finds his own mother".
In 2017, Motorola filed a lawsuit against Hytera for the first time, alleging that Hytera "crossed the line" when it poached people and took away more than 7,000 technical documents involving trade secrets from Motorola.
Motorola asserted that the documents involved infringement of 21 trade secrets and 4 copyrights, and demanded immediate compensation from Hytera.
In the face of the "subpoena" from the U.S. court, Hytera did not sit still, and directly made two preparations:
With one hand, he sorted out the materials needed for the defense, and with the other hand, he began to collect Motorola's "black materials", intending to fight back.
On November 14, 2017, Hytera sued Motorola's subsidiary in China on suspicion of monopoly.
At this point, the confrontation situation of each looking for its own mother was officially formed: American companies sued China in US courts, and Chinese companies sued the United States in Chinese courts.
However, in this confrontation, Hytera and the Chinese court suffered a loss, and the property rights dispute occurred in the United States, and the strong dragon did not suppress the head snake, and in the first confrontation, Hytera obviously suffered a loss.
On March 5, 2020, the U.S. Northern District Court ruled in the first instance:
Hytera infringed a number of Motorola's trade secrets and copyrights and was awarded a total of US$764 million in damages and punitive damages.
In the same year, the Beijing Intellectual Property Court rejected Hytera's accusation of monopoly against Motorola for insufficient reasons.
There is no way to do this, because it is Motorola's head office that jumps and scolds the streets, and it is indeed difficult to convict the domestic subsidiary of Stuffy Hulu for "monopoly."
Hytera, who was angry inside and outside, couldn't swallow this breath, feeling that he had been beaten outside and had not gotten the support he wanted to sue at home, so while Hytera filed an appeal in the United States, he chose to "sue his uncle and uncle" at home, and went to Guangzhou and Shenzhen to sue again.
Motorola also continued to collect evidence and offer additional compensation, just as the fighting between the two sides gradually heated up:
The U.S. Department of Justice has also initiated criminal proceedings against Hytera for stealing secrets.
The lawsuit also includes Hytera's appeal to a Chinese court in defiance of U.S. court proceedings and a request for immediate dismissal of the lawsuit.
This time, from the two children fighting, due to the intervention of the parents, there was an instantaneous one-sided situation.
As mentioned above, under the roof of people, Hytera, which accounts for more than 40% of its overseas business, still relies on the U.S. market and the supply chain behind it, and even some of Motorola's technology patents, and can only choose to back down if it wants to retain the existing market.
On the other hand, it is not difficult for us to find the accusation of "commercial theft" from Hytera's appeal request, and Hytera's appeal can basically be summarized as follows: Motorola exaggerated, I didn't take so many things, and I didn't make so much money, so the amount of compensation should not be so high.
It can be seen that Hytera admits that it is guilty of the "theft of secrets", but it just wants to reduce the loss as much as possible.
As a result, Hytera, which chose to temporarily "admit intimidation", was also subject to sanctions such as losing money, fines, and global sales bans.
It was not until Hytera filed a withdrawal with the Chinese court that the U.S. Court of Appeals was given a "step" that "no longer be flouted", and the U.S. Court of Appeals suspended the fine and global ban on Hytera.
Hytera, which resumed normal sales, finally took a breather from the storm of the ban, but it was only "suspended" rather than "revoked" the ban, so that Hytera did not dare to take it lightly, and the twists and turns encountered by Hytera this time also gave some warnings and reminders to a number of companies going to the United States or state-owned enterprises that plan to go to the United States to pan for gold.
Although it seems that Hytera has won the ban, resumed normal business, and began to compete for market share again, it has really got the money;
However, the U.S. judiciary, which seems to have only won face, has sounded the alarm for all Chinese companies, and in this game, the U.S. judiciary intends to knock the mountain and shake the tiger, ostensibly to deal with the commercial dispute between Hytera and Motorola, but in fact the U.S. judiciary is "demonstrating" against China: in my one-third of an acre, what I say, is what it is.
Unreasonable arguments for three points and unforgiving people are the coercion that the US judiciary wants to reveal to all companies going to the United States.
For domestic enterprises, if they want to go to the United States to pan for gold, they must have their own core technology, and they can't just be assemblers with American technology, otherwise, they may be technically stuck by the United States at any time, or even completely targeted from the policy, and if they are not careful, they will be sued in court.
epilogue
It is also targeted by the United States, whether Huawei chooses to go home for development, or Hytera chooses to temporarily compromise in order to try the courage, I believe that it is the best choice made by the company at the moment.
But as enthusiastic bystanders, we certainly hope that in the future, there will be more national enterprises in China that are as tough as Huawei and will not give the United States a good look.
However, no matter how to deal with it, insisting on developing its own technological innovation and holding the core competitiveness in its own hands is the basic requirement for the healthy development of enterprises and not being at the mercy of others.
Resources
The U.S. court suspended the ban on sales, and Chinese walkie-talkie manufacturer Hytera resumed sales - overseas network
Hytera announced that the ban on sales and fines have been suspended —— Securities Star
Suddenly, the communication faucet was indicted by a U.S. court: a global ban on sales, a daily fine of $1 million—— the Daily Economic News
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