Motorola Solutions Sets the Record Straight on Recent Court Rulings Against Serial Infringer Hytera

U.S. International Trade Commission Found Hytera Infringed ALL Four Motorola Solutions Patents at Issue; Issued Exclusion and Cease-and-Desist Orders
 
Regional Court of Düsseldorf Determined Hytera Communications and Hytera Mobilfunk GmbH Infringed Motorola Solutions Patent at Issue; Issued Two Injunctions and Held Hytera Liable for Damages
 
Hytera Admits Any Redesigned Products it May Offer in the Future Will Not Include Key Features Protected by Motorola Solutions’ Patents
 
Motorola Urges Hytera to Provide Open Communications with Customers and Dealers Regarding the ITC’s Orders
 
CHICAGO – November 29, 2018 – Motorola Solutions, Inc. (NYSE: MSI) today set the record straight regarding the misleading statements put forth by Hytera Communications Corporation Limited (SHE: 002583) (“Hytera”) of Shenzhen, China.
 
“The numerous court rulings across the globe have confirmed that Hytera is a serial infringer of Motorola Solutions’ intellectual property,” said Mark Hacker, general counsel and chief administrative officer of Motorola Solutions. “Moreover, it has been reported in a recent interview that Hytera admitted that its new i-Series will lack important features available on Motorola Solutions’ devices. While Hytera has stated that the features are ‘minor,’ we believe Hytera is deliberately misleading its own customers and distributors as our patented technologies provide important benefits that vastly improve performance. Any products without those features, including Hytera’s supposed new ‘i-Series,’ will be severely limited in functionality. In addition, Hytera’s contention that its ‘i-Series’ has been broadly cleared by the ITC is not supported by the ITC’s public materials.”
 
Mr. Hacker continued, “Hytera has been fighting hard in court to keep as much as possible of the ITC’s rulings redacted and secret, and we urge Hytera to permit the rulings to be made public. Dealers and customers deserve the right to make informed decisions about the risks they run in purchasing products lacking the critical functionalities covered by Motorola’s patents, and in doing business with a company that has engaged in intentional copying, infringement and misappropriation.”
 
As previously announced:

• On Nov. 16, 2018, the U.S. International Trade Commission (ITC) issued a Notice of Final Determination confirming that certain Hytera products infringe all four Motorola Solutions U.S. patents, and issued exclusion and cease-and-desist orders for three of those patents. As a result, following the conclusion of the Presidential review period (Jan. 15, 2019), Hytera will be prohibited from importing infringing products into the United States and selling or marketing those products. The ITC’s Final Determination also affirmed the Initial Determination previously issued by Administrative Law Judge Mary Joan McNamara, which found Hytera to be an intentional infringer and copyist of Motorola’s patented technologies. This decision was supported by evidence showing that certain former Motorola employees took thousands of proprietary documents and source code from Motorola when joining Hytera and later invoked the Fifth Amendment to avoid incriminating themselves.
• On Nov. 20, 2018, the Regional Court of Düsseldorf determined that Hytera’s two-way Digital Mobile Radio (DMR) subscriber radios are infringing Motorola Solutions’ patent EP 2 342 851 B1. As a result, the Regional Court granted two injunctions against Hytera, preventing the company from offering the patented method in Germany, and from offering and delivering products capable of performing the patented method in Germany.

Significantly, Hytera appears to be largely avoiding questions about how its products will be functionally impacted by the ITC’s order if the infringing features are removed. That impact is significant: the infringed patents cover key innovative technologies widely used in Hytera’s DMR two-way radios and repeaters, including:

• Motorola Solutions’ Fast Scan technology, used by nearly every Hytera subscriber when scanning channels in repeater mode, which enables a subscriber radio to more quickly scan through a list of radio frequency channels quickly to find important transmissions. Without this technology, critical messages may be partially or even completely missed;
• Motorola Solutions’ Rapid Re-key technology, used by every Hytera repeater and every subscriber that operates in repeater mode, which provides the ability for messages to be repeated even after a repeater goes to sleep to preserve spectrum. This prevents the need for the retransmission of communications and helps keep important messages from being missed; and
• Motorola Solutions’ TDMA Direct Mode Pseudo Trunking technology, which increases the number of calls that can take place and significantly reduces the amount of time it takes to set up a new call. In fact, Hytera publicly conceded in litigation in the Regional Court of Düsseldorf that without the functionality provided by our patents, products using that feature will take up to twice as long to find a free timeslot for communication in direct mode.

Hytera’s statements to the public are very different than those made by Hytera and its dealers to the ITC, where it confirmed the importance of the technologies Hytera says it will remove from its products. Hytera’s dealers urged the International Trade Commission not to issue the order it did, stating that “[i]f the recommended order is entered, our customers’ effectiveness in providing services essential to public health, safety, and welfare will be put at great risk.” Hytera’s customers also described how the ITC’s exclusion order would impact their use of Hytera’s products, indicating that if the ITC excluded Hytera’s products with the infringing technologies, that decision would impact Hytera’s products significantly, and noting that “our people and the public cannot afford delays caused by communication interruptions or failures. Seconds matter if we are to protect the public and save lives.”
 
Consistent with Hytera’s and its customers’ statements to the International Trade Commission, Hytera’s recent product announcements regarding its new i-Series are conspicuously silent as to whether those new products will deliver equivalent functionality to Motorola Solutions’ products. In addition to reportedly lacking key technologies and features, Motorola Solutions notes that it has been unable to locate any i-Series products in use or available for purchase anywhere around the world. As soon as any such newly released products become available, Motorola Solutions will promptly evaluate them to determine if they contain technologies subject to the International Trade Commission’s orders or Motorola’s patent portfolio.
 
For additional information regarding Motorola Solutions' legal actions against Hytera, please visit https://www.motorolasolutions.com/newsroom/press-releases/hytera-litigation.html.
 
Forward-Looking Statements
This press release contains certain forward-looking statements including statements regarding expectations with respect to litigation filed by Motorola Solutions, Inc., and the outcomes possible if successful. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and depend on circumstances that will or may occur in the future and are outside the control of Motorola Solutions, Inc., and its officers. Actual results may differ from those expressed in such statements depending on a variety of factors including those discussed in this release.
 
About Motorola Solutions
Motorola Solutions (NYSE: MSI) is a technology company that provides mission-critical communications, software and video solutions that help build safer cities and thriving communities. Public safety and commercial customers globally depend on the company’s two-way radios, broadband technology, video surveillance and analytics solutions, services and software to keep them connected, from extreme to everyday moments. Learn more at www.motorolasolutions.com.