MSI Sues Round Rock

Motorola Solutions Inc. ( MSI - Analyst Report ) recently announced that it has filed a countersuit in the United States District Court for the District of Delaware against patent licensing company Round Rock Research LLC in order to defend allegations of patent violation brought against Motorola Solutions clients.

It all began last year when the customers of Motorola Solutions, especially Amazon.com Inc. ( AMZN - Analyst Report ) , were held liable for infringing the radio frequency identification (RFID) technology of Round Rock Research.

Motorola Solutions reckons that the RFID technology, deployed by retail firms to better manage their inventory as well as avoid shoplifting, is free from any patent infringement.

Motorola Solutions is a market leader in the lucrative U.S. Public Safety market.The company’s business model remains compelling and we believe that the company will be able to maintain its current top-line growth going forward, primarily due to the critical nature of the public safety network in the U.S. and massive growth potential in the Middle East.

Furthermore, the company has entered into an agreement with Verizon Wireless ( VZ - Analyst Report ) to install a standard-based public safety broadband network for mission-critical operations leveraging on the nationwide LTE network of Verizon, which we believe will act as a positive catalyst for the stock going forward. We, thus, maintain our long-term Neutral recommendation onMotorola SolutionsInc.

Currently, Motorola SolutionsInc.has a Zacks #2 Rank, implying a short-term Buy rating on the stock.

Motorola Solutions Inc. based in Schaumburg, Illinois, is a leading communications equipment manufacturer, and has strong market positions in bar code scanning, wireless infrastructure gear, and government communications.