Huawei talks intellectual property in internal Motorola memo

Huawei has a tale to tell to the world about its views on that rivalry between two of the world’s biggest telecommunications players – Huawei and Motorola. It didn’t come out in the open but TechEye has obtained internal communications about what it thinks.

It all began ten years ago, when Huawei as a newcomer to the telecom market. It collaborated with Motorola as an OEM in order to fuel its expansion and to grow its customer base. At that time, the partnership was win-win, says the memo, back “when the two companies shared their complementary advantages, and their collaboration flourished during those years. Motorola spent over $878 million to purchase Huawei’s equipment.”

Now with Nokia Siemens Networks‘ (NSN) attempt to buy wireless network assets from Motorola, Huawei is a little concerned that the case poses questions about the security of Huawei’s confidential information from any assets being sold to NSN.

However, in the capitalist communist political economic framework of China, NSN’s attempt didn’t go well with the Anti-monopoly bureau of China’s Ministry of Commerce as NSN failed to obtain approval from the latter, as told to us by a Huawei insider.

The review of the case has been postponed for 60 days, setting back plans to complete the transaction within the first quarter of 2011.

Huawei said: “While this particular case has its own set of tribulations, it has been preceded by a litany of previous skirmishes.

“Just one day after Motorola announced the proposed U$ 1.2 billion deal with NSN, Motorola added Huawei to the list of defendants in a lawsuit that the company filed two years ago against a company named Lemko and its employees.

“Previously, the US District Court for the Northern District of Illinois had issued a preliminary injunction which restrained Motorola from transferring any of Huawei’s trade secrets to NSN in a proposed $1.2 billion transaction. It also called for Motorola to hire a qualified third party to conduct an investigation to ensure Huawei’s confidential information had been securely removed from any assets being sold to NSN.”

However, Huawei established a stronger foothold and grew to become the one of world’s largest telecom equipment vendors. Its wireless market share grew from 10.9 percent in 2008 to 20.8 percent in 2010 as per Dell‘oro, February 2011.

Huawei makes a point to advocate its “ethical” practice, defending itself in the warfare of corporate lawsuits.

The source says, “As early as 2003, Cisco filed a lawsuit against Huawei for intellectual property infringement. That case ended in a court settlement with Cisco withdrawing its suit against Huawei with no further requests for Huawei to make any changes to its products.

“There was no concrete evidence that proved Huawei had infringed on Cisco’s intellectual property, but even long after that case was dismissed, Huawei continues to be dogged with a reputation for IPR infringement despite the company’s track record for innovation.

“Moreover, Huawei was the world’s second largest patent seeker across all industries in 2009, ranking ahead of every other telecom vendor.”

Huawei is now is ready to take on the world, and it’s desperate to protect what it calls “its important assets”.

TechEye tried to corroborate the facts with Huawei India but it remained silent – and so did Motorola.