US court bars Motorola from divulging Huawei trade secrets to rival

Could derail Motorola plans to sell networks business to Nokia Siemens Networks

A US federal court has prohibited Motorola Solutions from divulging confidential trade secrets of Huawei Technologies to rival Nokia Siemens Networks.

Motorola Solutions is selling its wireless network infrastructure business, which incorporates Huawei technology, to a joint venture of Finland's Nokia and Siemens for $1.2bn.

Last month, Huawei filed a lawsuit against Motorola, arguing that the deal with Nokia Siemens Networks would represent a misappropriation of Huawei trade secrets.

Since June 2000, Motorola and its corporate predecessor have been reselling licensed Huawei products under its own brand.

Last month, Judge Sharon Johnson Coleman issued a temporary restraining order in favor of Huawei. The latest injunction replaces the temporary restraining order and will remain in effect until Huawei and Motorola resolve the issue in arbitration in Switzerland.

The Judge also asked the Chinese firm to post a $500,000 bond to indemnify Motorola and Nokia if they were wrongly enjoined.

The order could further complicate the sale of the Motorola networks business, as the Huawei-developed technologies represent a significant portion of the assets being transferred to Nokia Siemens Networks.

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