The US vendor Motorola Solutions and its Chinese counterpart Huawei have come to an agreement to settle all pending legal action between them.
On the one hand, Huawei has withdrawn its lawsuit against Motorola Solutions and the European vendor Nokia…
The US vendor Motorola Solutions and its Chinese counterpart Huawei have come to an agreement to settle all pending legal action between them.
On the one hand, Huawei has withdrawn its lawsuit against Motorola Solutions and the European vendor Nokia Siemens Networks (NSN).
NSN had agreed to acquire the mobile networks business of Motorola Solutions (the business communications arm of the now demerged vendor Motorola).
Huawei had challenged the deal, arguing that it would involve the transfer of Huawei’s intellectual property to NSN.
According to the statement, Huawei and Motorola (which demerged in January 2011) had entered into a relationship in which “Motorola resold certain Huawei products under the Motorola name”.
Over the following ten years, Motorola had acquired US$880m in technology from Huawei covering core networks and radio access networks.
Under the new agreement, Motorola Solutions will be able to transfer its commercial agreements with Huawei to NSN for a fee. The European vendor will also be able to use Huawei’s confidential information to service the networks that Motorola has deployed worldwide.
On the other hand, Motorola has also agreed to withdraw a lawsuit in the Chicago Federal Court, in which Huawei was the defendant.
The president and CEO of Motorola Solutions, Greg Brown, expressed regret for the dispute between the two companies.
Brown said: “After reviewing the facts, we decided to resolve these matters and return to our traditional relationship of confidence and trust.”
Motorola Solutions now expects the deal to sell its mobile networks business to Nokia Siemens Networks to be completed by 29 April, although it is still pending approval from the Chinese regulatory authorities.
In an 8-K Document filed today with the SEC, Motorola Solutions also revealed that the cash portion of NSN’s purchase price had also been reduced from US$1.2bn to US$975m.
Motorola Solutions will continue to retain US$150m of “accounts receivable, cash, certain customer financing notes, the Company’s iDEN infrastructure business”, as well as other assets from the original acquisition agreement.
