Not so fast, Motorola. Sure, the telecommunications giant is on the verge of handing over its wireless network business to Nokia Siemens Networks (NSN) in a $1.2 billion acquisition. But telecommunications equipment company Huawei Technologies plans to slow things down by suing Motorola in a U.S. District Court to prevent what it claims is the illegal transfer of its intellectual property to NSN. Bottom line: Huawei doesn’t want NSN to get hold of its proprietary technology now that Motorola has split into two companies and plans on selling much of its network-equipment arm to NSN.
For more than a decade now, Huawei and Motorola have had a cooperative relationship where Motorola has resold Huawei wireless network products to customers under the Motorola name. During this period, Motorola was provided with products and confidential Huawei IP developed by Huawei's team of more than 10,000 engineers, claims a Huawei press release.
Despite efforts to ensure that Motorola does not transfer any proprietary information to NSN, Huawei argues that Motorola has not responded “with assurances that it will prevent disclosure of that information to NSN. If Huawei's proprietary commercial property and information is transferred to a third party, Huawei will suffer irreparable commercial damage. Motorola's failure to adopt measures sufficient to ensure that Huawei's proprietary information remains confidential has compelled the company to file for the appropriate legal protection of its rights.”
In October, Huawei announcedlatest initiative to gain competitive advantage – an app store. According to a PC World report, the apps store will be offered as a hosted service to operators seeking to leverage opportunities in this space, yet don’t want to invest the time or money to build their own. its
Huawei’s Digital Shopping Mall will offer a library of videos, music, e-books and roughly 80,000 mobile applications. Such offerings can help telecom companies battling declining profits as they migrate to next-generation network infrastructure. The Digital Shopping Mall can help to offset costs while also offering telecoms a new way to generate more revenue from users.
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TechZone360 Contributing Editor
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