Motorola Solutions Seeks Court Action Against Hytera Over Unapproved Subsidiary Sale Amid Ongoing Trade Secret Dispute

Motorola Solutions has petitioned an Illinois federal court to hold Hytera Communications in contempt for allegedly selling its Teltronic subsidiary without notifying the court or Motorola. This move comes as Hytera still owes Motorola hundreds of millions of dollars from a $489 million judgment in a trade secrets dispute over two-way radios.

The legal battle between the two companies dates back to 2017, when Motorola accused Hytera of hiring former Motorola engineers who allegedly stole proprietary information to develop competing products. In 2020, a jury awarded Motorola $764.6 million in damages, later reduced to $543.7 million, for trade secret misappropriation and copyright infringement. ([motorolasolutions.com](https://www.motorolasolutions.com/newsroom/press-releases/motorola-solutions-wins-trade-secret-theft-and-copyright-infringement-lawsu.html?utm_source=openai))

In January 2025, Hytera pleaded guilty to a federal felony charge of conspiracy to steal trade secrets from Motorola. Under the plea agreement, Hytera faces a potential fine of up to $60 million and is required to pay restitution to Motorola, with the exact amount to be determined at sentencing scheduled for November 2025. ([justice.gov](https://www.justice.gov/usao-ndil/pr/chinese-telecommunications-company-pleads-guilty-conspiring-steal-technology-illinois?utm_source=openai))

Despite these legal actions, Motorola has faced challenges in collecting the awarded damages. In April 2024, a U.S. District Court held Hytera in civil contempt for failing to withdraw competing litigation in China and issued a worldwide sales injunction on certain Hytera products. ([sec.gov](https://www.sec.gov/Archives/edgar/data/68505/000006850525000024/msi-20250329.htm?utm_source=openai))

Hytera’s recent sale of its Teltronic subsidiary without informing the court or Motorola has prompted the latest contempt motion. Motorola argues that this action violates court orders and further complicates efforts to recover the owed funds.

As of July 29, 2025, Motorola Solutions’ stock (NYSE: MSI) is trading at $433.95, reflecting a 0.97% increase from the previous close. The company’s financial performance continues to be influenced by ongoing legal proceedings and efforts to enforce judgments against Hytera.

The outcome of Motorola’s contempt motion could have significant implications for the enforcement of trade secret protections and the ability of companies to collect damages awarded in intellectual property disputes.