Chinese telecom giant accused of stealing U.S. trade secrets.
QUICK FACTS:
- The U.S. Department of Justice (DOJ) on Monday announced federal charges against a Chinese tech company Hytera for allegedly conspiring to steal American trade secrets, Newsweek reports.
- In an unsealed 21-count indictment from the Northern District of Illinois, the DOJ accused the Chinese manufacturer of radio technologies of conspiring with former employees of Motorola.
- Hytera conspired between 2007 and 2020 to steal “digital mobile radio” (DMR) tech from Motorola, a Chicago-based company.
- Court documents indicate Motorola Solutions developed the DMR technology through years of research and design, while [Hytera] recruited and hired Motorola Solutions employees and directed them to take proprietary and trade secret information from Motorola without authorization.
- These pilfered trade secrets were used “to accelerate the development of Hytera’s DMR products, train Hytera employees, and market and sell Hytera’s DMR products throughout the world,” according to the statement.
- The indictment charges Hytera with conspiracy to commit theft of trade secrets, along with counts of possession or attempted possession of stolen trade secrets, according to Newsweek.
MORE ABOUT HYTERA:
- Hytera—based in Shenzhen and founded in 1993—is a major player in the radio technology industry, ranking second worldwide as a producer of radio terminal products, according to the Digital Mobile Radio Association.
- The Chinese company is also a major supplier to the Ministry of Public Security in its home country, according to Newsweek.
- Hytera sued Motorola in 2017 on antitrust grounds, accusing the company of monopolizing the two-way radio market.
- Motorola requested in 2019 that the suit be dismissed for lack of standing, Newsweek goes on to say.
BACKGROUND:
- If convicted, Hytera’s punishment could include criminal fines totaling three times the value of the stolen trade secrets. This value would be calculated at a later date, notes Newsweek.
- The prosecution against Hytera and the former Motorola employees is being led by Assistant U.S. Attorneys Melody Wells, Steven Dollear, and Vikas Didwania for the Northern District of Illinois, thoguh assistance has also been provided by trial attorney Nic Hunter of the National Security Division’s Counterintelligence and Export Controls Section.
