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Motorola sues Huawei and several former employees for stealing wireless trade secrets

Nilay Patel
07.21.10
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Man, if you thought the lawsuit action in the mobile space was crazy before, well, you ain't seen nothing yet -- Motorola just sued Huawei and over a dozen former employees for conspiring to steal its wireless trade secrets and other proprietary technology over a period of years starting in 2001. Yeah, it's crazy. The lawsuit was originally filed in 2008 against four former Motorola engineers and a company called Lemko, all of whom Motorola accused of conspiring to stealing trade secrets related to wireless technology. After years of discovery in the case, it appears that Motorola realized the conspiracy went much deeper than it originally thought, leading the company to file a new complaint on July 16th, in which it named Huawei and nine additional former employees, who allegedly schemed to steal plans for a 3G base station called the SC300.

According to the complaint, part of the scheme was ultimately blown up when one of the employees was arrested by Customs at O'Hare airport en route to China with $30,000 in cash and over 1,000 pages of documentation regarding Motorola's various communications networking tech, while another employee was caught buying Motorola phones in bulk and sending unlock codes and dump files to Lemko for reverse engineering purposes. Motorola also says that it doesn't yet know the exact relationship between Lemko, Huawei and some of the former employees because "file destruction software" was installed and run on computers before they were turned over as evidence, but the company claims that Huawei was aware it was receiving proprietary Motorola information the entire time it was in contact with the former employees. Yes, it's all very juicy -- we'll be watching this one closely.

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