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Huawei Wins Restraining Order Against Moto

Huawei Technologies Co. Ltd. has won a temporary restraining order from the U.S. District Court for Northern District of Illinois to prevent Motorola Inc. (NYSE: MOT) from sharing "confidential information" with Nokia Networks upon completion of its acquisition of Motorola. (See Huawei Sues to Block Moto Sale to NSN.)

The court granted part of Huawei's motion for a temporary restraining order and denied part of it as well. Huawei was not able to identify the element of its legal motion that the court denied as this article was published.

The court order mandates that Motorola is not to share any of Huawei's confidential information with Nokia Siemens. It also requires notification of any decision taken by MOFCOM (Ministry of Commerce for the People's Republic of China) regarding the acquisition.

In addition, the court order mandates the following: "Plaintiff [Huawei] and Motorola are ordered to agree upon the terms of a protective order and submit their proposed order to the Court's proposed order mailbox within 24 hours."

"We welcome this Temporary Restraining Order," said a Huawei spokesperson in an emailed response to Light Reading. "Huawei is seeking to protect its intellectual property and business secrets. This complaint is focused on stopping Motorola from illegally transferring Huawei’s intellectual property to a third party. This transaction, if not amended by the courts, threatens Huawei’s multibillion[-dollar] GSM, UMTS and Core Network business. Huawei is confident that the court will see the merits of its case."

Why this matters
While the temporary restraining order does not block Nokia Siemens' acquisition of Motorola, it looks like it will add time and money to the whole M&A process, which could result in the deal being delayed beyond its completion target of the end of the first quarter this year.

The length of a delay, if any, however, is not clear. But this move by Huawei certainly adds a whole new layer of legal procedure and administration to an already lengthy process.

For more
For all the sordid details on Nokia Siemens' attempt to expand into North America with the acquisition of Motorola's wireless infrastructure business, please see these stories:



— Michelle Donegan, European Editor, Light Reading Mobile

mildseven10 12/5/2012 | 5:14:37 PM
re: Huawei Wins Restraining Order Against Moto

This is totally new territory for multinational companies. Getting "MOFCOM" involved, in even a partially controlling manner, highlights the dilema to the West and benefits to Huawei of being a quasi-Govt enterprise. This is the first time since the 1930's and National Socialist Germany, that the global business community has faced such powerful State Owned or quasi-State Owned enterprises. The old Soviet Union at its peak was never in "Business". Below is a quote from an African tech journal from a few days ago. The writer innocently opines what is clear to him from personal observation in his country, not what is stated by Huawei. Yes, this is the clean-living, fully employee owned Huawei in action.     

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"In addition to directly giving loans to African governments for telecom development, the Chinese government is also using Huawei Technologies, China Telecom and ZTE to push for investment and sales of Chinese telecom equipment in Africa. As a result of Chinese government support for the telecom companies, Huawei Technologies and ZTE keep their prices extremely low and offer tailor-made solutions for poor African countries."

<div>By:Michael Malakata &nbsp;Source:Computerworld Zambia</div>
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Stefan Sip 12/5/2012 | 5:14:42 PM
re: Huawei Wins Restraining Order Against Moto

Nothing wrong with Huawei screwing with NSN/Moto a bit.&nbsp; It is probably for their own good since getting the two together is hardly worth the effort.&nbsp;


Give the press that Huawei gets, it is just par of the game.

wisley2003 12/5/2012 | 5:14:42 PM
re: Huawei Wins Restraining Order Against Moto

I don't get why huawei did not disclose this "IPR" issue uring last more than half year, and now sign up for&nbsp;a&nbsp;hysteria action.

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