Market Overview

After Hytera Petition, US ITC Agrees to Review Determination Favoring Motorola Solutions in Infringement Dispute


Global LMR Communications Provider Hytera Looks Forward to Review of
Initial Determination and Findings of Administrative Law Judge,
Commission Pushes Back Decision Date

Global land mobile radio communications provider Hytera Communications
Corporation Limited and its US subsidiaries Hytera America, Inc. and
Hytera Communications America (West), Inc. have learned that the US
International Trade Commission (ITC or the Commission) will
review-in-part the Final Initial Determination (ID) issued on 3 July
2018 by an ITC Administrative Law Judge (ALJ) that certain features in
Hytera's digital mobile radio (DMR) products sold in the US infringe
some claims in patents of Motorola Solutions, Inc. (MSI).

Hytera had petitioned for the Commission's review on 17 July 2018,
citing errors in the ID and arguing that the Commission had reasonable
grounds to review substantial elements of it. The ITC issued its Notice
of Review on 4 September 2018 and will postpone its final determination
to 16 November 2018. While the ITC conducts its review, there continues
to be no ban on the importation into or sale in the U.S. of any Hytera

"We are pleased that the Commission accepted our petition and we look
forward to its final determination with respect to the earlier Initial
Determination," said Tom Wineland, Vice President of Hytera
Communications America (West), Inc., on announcing the ITC's decision.

The ITC will review-in-part the final ID, including Order No. 38
precluding Hytera from presenting its licensing defense and Order 47
striking certain expert testimony from Hytera at the evidentiary
hearing. The Commission will also review the ID's finding that Hytera's
redesigned products infringe claims in MSI's U.S. Patent No. 8,116,284
("the '284 patent"), its application of an adverse inference with
respect to Hytera's employees having individually chosen to exercise
their Fifth Amendment rights, and its finding that insufficient record
evidence exists to conclusively determine whether any of Hytera's
redesigned products infringe claims in U.S. Patent No. 7,729,701 ("the
'701 patent") and the lack of an express finding on this issue with
respect to MSI's U.S. Patent No. 7,369,869 ("the '869 patent") or
8,279,991 ("the ‘991 patent").

During the ITC investigation, Hytera produced documents and source code
related to its new designs to obtain a determination from the ALJ. In
asking the ITC to review and reverse the ALJ's initial determination,
Hytera petitioned the Commission to review and determine whether these
latest redesigned products are not infringing. The Commission will
revisit the ALJ's decision with respect to these redesigned products.

"Hytera believes that its products marketed and sold to our many
customers in the US do not infringe the patents asserted by MSI. We are
particularly pleased at the forecast scope of the review, which includes
the Commission's reviewing why MSI would have asserted patents as
infringed that Hytera had previously licensed from MSI on fair,
reasonable, and non-discriminatory terms," says Hytera's Wineland.

It is common for companies competing in the high-technology sectors to
agree to shared standards and for companies to license to and from one
another certain so-called "standard-essential" patents on terms
described as "fair, reasonable, and non-discriminatory" (FRAND). Two of
the patents asserted by MSI against Hytera were for technology that
Hytera previously had licensed from MSI on such FRAND terms.

"Hytera is focused on innovation for our many customers, in the US and
worldwide. We look to compete fairly in the marketplace and to provide
high-quality products with a compelling value proposition," adds
Wineland. "We look forward to the disposition of this case at the ITC
and to resolving the nuisance litigations our competitor has filed
against us."

The case at the ITC is In the Matter of Certain Two-Way Radio
Equipment and Systems, Related Software and Components Thereof
No. 337-TA-1053), based on a complaint filed by Motorola Solutions on 29
March 2017. The ITC announced its vote to institute a Section 337
investigation on 28 April 2017. Shenzhen, P.R.C.-based Hytera
Communications Corp. Ltd., Miramar, Fla.-based Hytera America, Inc., and
Irvine, Calif.-based Hytera Communications America (West), Inc. are

About Hytera

Hytera Communications Corporation Limited is a leading global provider
of innovative professional land mobile radio (LMR) communications
solutions to governmental organizations, public security institutions,
and customers from industries including transportation, oil and gas, and
many others. Founded in Shenzhen, China, in 1993 and listed on the
Shenzhen Stock Exchange (002583.SZ), Hytera has ten research and
development centers around the world and has partnered with companies in
the U.S. since 2000. Hytera established its first US subsidiary, Hytera
America, Inc., in 2004. It established Hytera Communications America
(West), Inc., in 2016. Hytera owns PowerTrunk, Inc., and Sepura LLC, and
has research and servicing facilities in Schaumburg, Ill. More
information is at

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