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July 23, 2010

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Huawei: Motorola theft allegations 'groundless'

HUAWEI Technologies Co yesterday called "groundless" Motorola Inc's allegation that the Chinese firm conspired with former employees to steal the US company's tech and trade secrets.

"Motorola's complaint is groundless and utterly without merit and Huawei will vigorously defend itself against baseless allegations," Huawei said in a statement.

The comments came after Motorola named Huawei in a complaint filed last week in US District Court in the Northern District of Illinois. The complaint charged that some of Motorola's former employees had provided Huawei with detailed information about mobile phone technologies over a period of years.

"Huawei and its officers knew they were receiving stolen Motorola proprietary trade secrets and confidential information without Motorola's authorization and consent," according to Reuters' reporting of the complaint.

Motorola previously sued US-based company Lemko Corp, where several of the former Motorola employees had gone to work. Last week's filing was the first time Motorola named Huawei in the complaint.

Motorola alleged that Ren Zhengfei, Huawei's founder and chairman, received information from one of the former employees, named Pan Shaowei. Pan worked at Motorola for about 10 years until April 2004 and then became chief technology officer of Lemko Corp, the Wall Street Journal reported yesterday.

Huawei said it had no relationship with Lemko.

The company said it respects the rights of intellectual property and has its own strong research and development capabilities.

Motorola declined to comment on the case and said it would protect its intellectual property rights.

It was another move directed at Chinese telecommunication firms, including Huawei and ZTE Corp, that have grabbed market shares from Western rivals and challenged the former leaders, including Nokia Siemens Networks and Motorola.

Industry officials said the dispute was related to a deal, announced o Monday, that NSN would use US$1.2 billion to acquire certain Motorola's telecom equipment assets.

"It's a big surprise. We were partners for a long period and we didn't think it (Motorola) would do that," a Huawei official, who declined to be identified, told Shanghai Daily.

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