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Settlement means NSN-Motorola deal back on
13 April 2011
A settlement of the patent dispute between Motorola Solutions and Huawei removes barrier to NSN takeover deal
Nokia Siemens Networks
Huawei and Motorola Solutions have settled their dispute about patents in a deal that means Nokia Siemens Networks is likely to go ahead with its $1.2 billion deal to acquire most of Motorola’s network equipment business.
The patent settlement means that NSN will get access to “Huawei confidential information to service the networks Motorola deployed worldwide using Huawei’s products and technologies”, according to a statement from Huawei and Motorola. The three companies involved have not put a price on the settlement.
The NSN/Motorola deal was initially signed in July 2010 and was expected to close by the end of the year, but the eruption of the dispute led first to a delay in NSN’s expected completion to the end of March 2011 before being delayed by an indefinite time.
The Chinese regulator was also considering the deal, though the settlement of the patent dispute is taken as a sign that this will now be a formality.
Greg Brown, president and CEO of Motorola Solutions, said: “We regret that these disputes have occurred between our two companies. Motorola Solutions values the long-standing relationship we have had with Huawei. After reviewing the facts, we decided to resolve these matters and return to our traditional relationship of confidence and trust. I am pleased that we can again focus on having a cooperative and productive relationship.”
Guo Ping, vice chairman of the board and executive vice president of Huawei, added: “Throughout our decade-long relationship with Motorola Solutions, Huawei has contributed cutting edge technology to Motorola Solutions for use around the globe. Huawei provided Motorola’s experts and counsel with source code and millions of documents. Huawei acted properly and above board at all times and developed its products independently and without the use of any Motorola trade secrets. With the resolution of these cases, and the misunderstandings put to rest, Huawei is pleased to move forward with its efforts to provide innovative solutions to its customers.”
The agreed statement by the two companies said that Motorola “has agreed to withdraw its claims and dismiss, with prejudice, Huawei as a defendant in the ... litigation pending in the Chicago federal district court”.
At the same time “Huawei has agreed to withdraw its claims and dismiss, with prejudice, its lawsuit against Motorola Solutions and Nokia Siemens Networks in the Chicago federal district court and to resolve its claims against Motorola Solutions and NSN by entering into an agreement that allows Motorola Solutions to transfer its commercial agreements with Huawei to NSN for a fee.”
The statement notes that since Motorola and Huawei entered the relationship in 2000, “Motorola purchased $880 million in technology from Huawei that covered core networks and radio access networks” — perhaps an indication of the sum that Huawei expects to receive in the future from NSN once it buy’s Motorola’s business. GTB