Motorola's Suit Poses Challenge for Huawei's Success
Motorola Inc.’s (MOT) lawsuit against Huawei Technologies Co. alleging a plot to steal the U.S. company’s trade secrets could complicate years of largely successful efforts by the Chinese telecommunications-equipment giant to demonstrate itself as an innovator in the industry.
It’s far too early to know who will prevail in the lawsuit, which was filed Friday in U.S. District Court in Northern Illinois. Motorola’s complaint alleges that Huawei engaged in an elaborate scheme over a number of years to steal Motorola’s latest technology. Huawei said Thursday it will vigorously defend itself against the allegations, which it said are “utterly without merit.”
The spat has drawn attention to Huawei’s past confrontation with allegations of intellectual property violations, most notably Cisco Systems Inc.’s (CSCO) assertions in 2003 that Huawei stole its router code. Cisco dropped that suit after Huawei agreed to remove its router products from the market and change them, but the incident was deeply embarrassing for the Chinese company.
