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Motorola (MSI) Wins Patent Violation Lawsuit Against Hytera

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Motorola Solutions, Inc. (MSI - Free Report) recently announced that an Administrative Law Judge of the U.S. International Trade Commission (“ITC”) has issued a positive Notice of Initial Determination (ID) regarding its investigation into the patent violation complaint filed by it on Mar 29, 2017 against Hytera Communications Corporation Limited. Hytera is a leading global provider of innovative Professional Mobile Radio communications solutions based in China.

Motorola had accused Hytera of illicitly importing and selling two-way radio equipment and systems and related software and components that infringe four of its patents. Notably, these patents relate to technologies core to the operation of Hytera’s professional and commercial radio products available today.

As part of the ID, the Judge found that all four of Motorola’s patents are valid and Hytera has indeed infringed them. Motorola met the legal requirements of showing a “technical domestic industry” on three of the four patents.

In line with the legal proceedings, the Judge recommended an exclusion order preventing the importation of infringing products into the United States for Motorola’s U.S. Patents No. 7,369,869, 7,729,701 and 8,279,991. Also, a cease-and-desist order preventing the further sale and marketing of certain infringing products imported into the United States, was also suggested. A Final Determination by the ITC is slated to be issued by Nov 6, 2018.

Motorola considers this favorable ID an important step in its global efforts to address Hytera’s systematic infringement of its intellectual property. The company has a track record of innovation with an extensive portfolio of approximately 5,000 patents. It is focusing on continued innovation in voice and data solutions spanning 12,500 systems around the world. These systems drive demand for additional device sales, software upgrades, infrastructure refresh and expansion.

In the past three months, shares of Motorola have rallied 11.5%, outperforming the industry’s growth of 6.6%.        



Motorola currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the industry include Comtech Telecommunications Corp. (CMTL - Free Report) , Juniper Networks, Inc. (JNPR - Free Report) and Ubiquiti Networks, Inc. (UBNT - Free Report) . While Comtech sports a Zacks Rank #1 (Strong Buy), Juniper and Ubiquiti carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.    

Comtech has a long-term earnings growth expectation of 5%. It beat earnings estimates in each of the trailing four quarters, the average being 123.7%.         

Juniper has a long-term earnings growth expectation of 5.7%. It surpassed earnings estimates thrice in the trailing four quarters with an average positive surprise of 3.4%.     

Ubiquiti has a long-term earnings growth expectation of 18.6%. It surpassed earnings estimates thrice in the trailing four quarters with an average positive surprise of 8.9%.    

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