Chinese telecom networks solutions provider Huawei Technologies obtained a federal court order prohibiting Motorola Solutions (MSI) from passing on confidential information to Nokia Siemens Networks (NSN).
Huawei had sued Motorola Solutions following a $1.2 billion deal to sell Motorola's wireless network business to NSN, demanding that its proprietary commercial property and information shall not be transferred to NSN.
Huawei has said that since 2000 it had a cooperative relationship in the radio access network and core network businesses with Motorola. During this period, Motorola was provided with products and confidential Huawei IP developed by Huawei's team of more than 10,000 engineers, it had said.
When it was announced in July 2010 that NSN was purchasing Motorola's wireless network business, Huawei sought an assurance that Motorola will not pass on its proprietary information, saying such a transfer will cause irreparable commercial damage.
While U.S. District Judge Sharon Johnson Coleman in Chicago accepted the argument and handed a verdict in favor of Huawei, the judge did not accept Huawei's appeal to block the $1.2 billion deal between Motorola and NSN.
Reuters quoted Nick Sweers, a Motorola Solutions spokesman, as saying that his company was extremely pleased that the judge denied Huawei's request to block the sale deal. He said Motorola told the court that it would protect Huawei confidential information, according to Reuters.