Wednesday, February 2, 2011

Chinese company file suit to block sale of units of Motorola

SHANGHAI — China Telecommunications Contracts that giant Huawei Technologies has filed a lawsuit seeking to prevent the completion of the sale of its wireless network Division of Nokia Siemens Networks due to a dispute about Motorola technology.

Huawei, long-time partner of Motorola, said in a suit filed Monday in U.s. District Court in Illinois that it did not object to Motorola's decision to sell its unit of Nokia Siemens but was worried that the equipment and technology Motorola sold including technologies developed by Huawei. Motorola's sales of these technologies, said Huawei, would lead to theft of trade secrets, copyright infringement and breach of contract.

Last year, Nokia Siemens Networks agreed to acquire elements of Motorola wireless network infrastructure for $ 1.2 billion in cash.

Monday delays, the judge ordered Motorola does not disclose the confidential information for Huawei Nokia Siemens.

In its lawsuit, Huawei has said that for over a decade has provided Motorola with Huawei and networking products that Motorola had sold the goods under its own brand. Huawei has said that these products and technologies are also sold by Huawei and account for billions of dollars in annual revenue for the company.

Motorola said in a statement Tuesday that he believed that the lawsuit was without merit and that it aims to complete the sale early in 2011, pending the approval of the anti-trust authorities.

But the complaint by the Chinese company arrives after Motorola presented its lawsuit in Federal Court last year, Huawei accusing of stealing the designs of Motorola. Motorola said that Huawei took the designs with the help of a group of Chinese-born Motorola engineers.

The battle comes at a time when Huawei, one of the largest and best-known of China is gaining market share in the world and are seeking to enter the market of the United States with telecommunications equipment.

Huawei already has a strong presence in Europe and second telecom equipment supplier in the world behind Ericsson of Sweden. But the company has struggled with accusations he stole some technology by Western companies and is connected to the Chinese military. The company has strongly denied the allegations and insists that it is a private company.

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