US court suspends Hytera sanctions

The United States Court of Appeals for the Seventh Circuit has suspended contempt sanctions previously issued to Hytera by the US District Court for the Northern District of Illinois. This enables the company to resume its global two-way radio operations, which it had been ordered to put on hold following the aforementioned earlier ruling handed down at the beginning of April.

Discussing this latest development in a statement, the company said: “Hytera and all of its officers, agents, servants, employees, affiliates, subsidiaries, and distributors and resellers of any type, and all those persons in active concert or participation with any of them, may now resume their regular business activities.”

The Illinois court imposed the aforementioned sanctions at the beginning of April, temporarily barring the company from selling two-way radio products globally. The company complied with the orders, saying that it was “taking measures to lift the [injunction] as soon as possible.”

According to a statement issued by Hytera itself at the time: “The US District Court for the Northern District of Illinois has temporarily enjoined [Hytera], from sales and distributing only two-way radio products anywhere in the world, pending Hytera’s full compliance with the US Court’s anti-suit injunction orders.

“Hytera respects the US Court’s decision and is working to achieve full compliance with [its] anti-suit injunction orders.”

This decision by the Court of Appeals is the latest chapter in an ongoing dispute over trade secrets taking place between the company and Motorola Solutions.

The US Justice Department charged Hytera with alleged conspiracy to commit theft of trade secrets in 2022, with Motorola Solutions having originally accused the Chinese company of infringement in 2017. Hytera denied the 2022 charges, saying in a statement at the time that it “respectfully disagrees with the allegations.”

Following the charges, in June of 2022, Hytera filed a case with the Shenzhen Intermediate People’s Court, seeking a judgement that its H-series products do not infringe on Motorola Solutions trade secrets and copyrights.

The early April sanctions were a response to that, with the Northern District of Illinois Court stating at the time: “On March 25, 2024, this Court directed Hytera to ‘refrain from further pursuing or enforcing’ its China Action… and on March 29, 2024, ordered Hytera to ‘withdraw from the action’ 

“The Court finds that Hytera is in violation of these orders. Unless otherwise noted below, these Contempt Sanctions are effective until Hytera is in full compliance with the Court’s orders.”