Huawei Technologies Co. has sued to delay the sale of some Motorola assets to Nokia Siemens Networks, claiming it would improperly transfer the Chinese company's intellectual property.
Motorola, which has since split into two companies, agreed in July to sell the bulk of its network-equipment business to Nokia Siemens Networks for $1.2 billion. In a suit filed Monday in federal court in Chicago, Huawei asked a judge to hold up the sale until its intellectual property claim can go through arbitration.
Motorola's deal with Nokia Siemens, originally expected to close last year, has been delayed into the current quarter, as the antitrust arm of China's Ministry of Commerce reviews the transaction, Nokia Siemens said last month. Huawei was among the companies that explored buying the business.
The Chinese company said Motorola has sold rebranded Huawei equipment since 2000; and Huawei argues the Nokia Siemen's deal would turn its technology over to one of its biggest competitors.
"Huawei has had a 10 year agreement with Motorola but we have no agreement that allows them to deliver our intellectual property to any third party," said Bill Plummer, vice president of external affairs for Huawei.
Motorola Solutions Inc., the Motorola successor that inherited the networks business, wasn't available to comment. The suit also names Nokia Siemens, a joint venture of Nokia Corp. and Siemens AG, which declined to comment.
The Chinese says it signed deals under which Motorola rebranded and sold $878 million worth of Huawei technology over roughly the past decade. The technology involves equipment for GSM network technology, as well as for advanced UMTS networks, that Motorola sold in markets including China, Russia and Ukraine.
Huawei says the agreements require that disputes be settled through arbitration at a tribunal of the International Chamber of Commerce in Geneva.
The suit represents a reversal of roles for the Chinese company, which has been the target of claims of intellectual property theft and is trying to rehabilitate its reputation. In 2003, Cisco Systems Inc. sued Huawei claiming the Chinese company stole its router code. Cisco dropped that suit after Huawei agreed to remove its router products from the market and change them.
In July, Motorola filed suit against Huawei alleging an elaborate plot to steal trade secrets via a front company that hired Motorola employees. Huawei has denied the allegations.
Huawei's Mr. Plummer said those suits are an unfair blemish on the company. He said Huawei paid out $200 million in intellectual property royalties in 2009 and holds over 50,000 patents.
The Chinese government is playing an increasingly influential role in global mergers and acquisitions. It has set conditions for big global transactions including a requirement last year for Pfizer Inc. to divest its Chinese swine-vaccine business as part of its acquisition of Wyeth, and an antitrust probe that led to the blocking of Coca-Cola Co.'s $2.4 billion bid for China Huiyuan Juice Group Ltd. the year before.
Huawei's suit names Motorola Solutions and Motorola obility Holdings Inc., Motorola's two successor companies, as well as Nokia Siemens Networks US LLC and Nokia Siemens Networks B.V.
The Chinese company says it signed deals under which Motorola rebranded and sold $878 million worth of Huawei technology over roughly the past decade. The technology involves switching equipment for GSM network technology, as well as more advanced UMTS networks, that Motorola sold in markets including China, Russia and Ukraine.
Huawei says the agreements require that disputes be settled through arbitration at a tribunal of the International Chamber of Commerce in Geneva.