Hytera ordered to pay $50 million in US trade secret case involving Motorola

by SHAO Yuting

Hytera Communications Corp Ltd has been ordered to pay a $50 million criminal fine to the U.S. government after a federal court in Illinois issued a ruling in a long-running trade secret case involving Motorola Solutions, marking a key development in an eight-year legal dispute between the two communications-equipment makers.

In a filing released on March 12, Hytera said the U.S. District Court for the Northern District of Illinois set the fine at $50 million and rejected a $290.3 million criminal restitution claim sought by Motorola. Compensation payable to Motorola Solutions and its Malaysian subsidiary in the criminal case was set at $0.

The ruling follows a January 2025 plea agreement between Hytera and the U.S. Department of Justice (DOJ), under which the company agreed to pay a fine ranging from $0 to $60 million and make additional payments tied to related civil proceedings.

Hytera said it had already recorded a $60 million provision in its 2024 annual report based on the upper end of the agreed range. The company will reverse the excess $10 million provision following the ruling. The payment deadline has been set for no later than the end of 2029, easing short-term pressure on cash flow.

The dispute centers on digital mobile radio (DMR) technology used in professional communications equipment.

Motorola Solutions filed a civil lawsuit against Hytera in 2017, alleging the Chinese company had misappropriated trade secrets and copyrighted software code after hiring former Motorola engineers beginning in 2006.

In 2020, a federal jury in Illinois ruled in Motorola's favor and ordered Hytera to pay $764 million in damages, one of the largest intellectual-property awards against a Chinese company in the United States.

The litigation has weighed heavily on Hytera's finances. As of January 2026, the company had paid $258 million in civil damages to Motorola in three installments, including $60.94 million transferred from an escrow account in 2024, $157 million paid in 2025, and another $40 million payment in January 2026.

The provisions and compensation payments have pushed Hytera into consecutive annual losses. In a profit warning issued January 31, the company said it expects a net loss attributable to shareholders of 190 million to 290 million yuan in 2025, following losses of 388 million yuan in 2023 and 3.49 billion yuan in 2024.

Hytera said the expected 2025 loss was largely driven by a provision of about $110 million linked to licensing fees for certain H-series DMR products following an initial court ruling. Excluding that factor, the company said underlying profitability improved.

Despite restrictions affecting some of its U.S. business, Hytera said operations have shown signs of recovery as it expands sales in Europe, Asia-Pacific and Latin America. Overseas revenue accounted for 51.23% of total sales in the first half of 2025, exceeding domestic revenue for the first time.

The company said its core business remains focused on enterprise and government customers, including public safety agencies, utilities and industrial clients, which rely on its professional communications systems for mission-critical operations.

Hytera said the criminal ruling could still face further legal proceedings and that the final outcome of the broader dispute remains uncertain.