Huawei Technologies Co. has sued Motorola claiming that it would improperly transfer the Chinese company’s intellectual property.
Motorola has since split into two companies, agreed in July to sell the bulk of its network-equipment business to Nokia Siemens Networks for $1.2 billion.
In a suit filed Monday in federal court in Chicago, Huawei has asked a judge to hold up the sale until its intellectual property claim can go through arbitration.
According to Nokia Siemens previous statements, Motorola’s deal with Nokia Siemens, originally expected to close last year, has been delayed into the current quarter, as the antitrust arm of China’s Ministry of Commerce reviews the transaction. Huawei was among the companies that explored buying the business.
According to the Chinese company, Motorola has sold rebranded Huawei equipment since 2000; and Huawei argues the Nokia Siemen’s deal would turn its technology over to one of its biggest competitors.
According to Bill Plummer, Vice President of External Affairs for Huawei, the company has had a 10 year agreement with Motorola but they have no agreement that allows them to deliver their intellectual property to any third party.
As per Huawei, it signed deals under which Motorola rebranded and sold $878 million worth of Huawei technology over roughly the past decade. The technology involves equipment for GSM network technology, as well as for advanced UMTS networks, that Motorola sold in markets including China, Russia and Ukraine. The agreements require that disputes be settled through arbitration at a tribunal of the International Chamber of Commerce in Geneva.