Global LMR Communications Provider Hytera Sues Motorola Solutions Under Sherman Antitrust Act Alleging Anticompetitive Practices That Force US Customers to Pay a Surcharge for Safety
Hytera Communications Corporation Ltd. today filed suit in federal district court in New Jersey against Chicago, Ill.-based Motorola Solutions, Inc., alleging that Motorola Solutions is engaging in anticompetitive practices that are unlawful under the Sherman and Clayton Acts by deliberately and actively foreclosing competition in land mobile radio (LMR) communications systems, in order to reap billions of dollars on sales at inflated prices to US customers.
Hytera's complaint alleges that Motorola Solutions prevents Hytera from competing in the US marketplace with its critical communications products that offer best-in-class features and far better value to public safety organizations, municipal governments, businesses, and taxpayers. Hytera further alleges that Motorola Solutions maintains its monopoly and enforces its inflated prices in the US by engaging in a monopolistic scheme that includes forcing LMR dealers to drop Hytera's products, leveraging its dominance of the US public safety market to impede adoption of newer, less expensive technologies here in the US, and engaging in a serial pattern of sham litigation to impede Hytera and interfere with its relationships with dealers and customers.
"Motorola Solutions is forcing US customers to pay artificially high prices for critical communications. It can do this because of its long-standing monopoly," notes Tom Wineland, Director of Sales for Hytera Communications America (West), Inc. "Motorola Solutions is doing this as security risks in the US are increasing, with a growing need for mission-critical communications solutions that help organizations to protect important utilities, provide safety and services for public transportation systems, and respond to threats at events such as concerts, festivals, and sports events, even in our nation's schools. All these demands put pressure on organizational budgets, and in turn are costing taxpayers and the American public."
Shenzhen-based Hytera, Jersey City, N.J.-based PowerTrunk, Inc., Miramar, Fla.-based Hytera America, Inc., Irvine, Calif.-based Hytera Communications America (West), Inc., and Cambridge, UK-based Sepura PLC together allege that by foreclosing competition from Hytera’s DMR and TETRA solutions, Motorola Solutions is able to maintain inflated pricing in the US on its P25-compliant products. P25 is a technology standard for public safety LMR in the US. TETRA, used by public safety organizations and commercial businesses worldwide, offers similar functionality and features to P25 equipment and can be significantly less expensive, making it a compelling option for utilities and transportation organizations and other commercial users in the US. Hytera’s complaint provides the example of two competing professional DMR handsets with similar features and functionality: Motorola Solutions’ suggested retail price (MSRP) is as much as $738, nearly twice Hytera’s MSRP of $440.
Hytera further alleges that Motorola Solutions is charging US customers more than it charges customers in competitive markets outside the US. Hytera gives an example that, even after Motorola applied discounts to its list price, it charged the City of Chandler, Ariz., $5,290 for a P25-compliant radio -- nearly five times what a customer in the UK could pay at retail for a comparable TETRA product. Hytera explains that US customers and American taxpayers could realize significant savings from competition from more cost-effective TETRA and DMR solutions that are just as robust.
"The only thing this pricing adds up to is more profit for Motorola Solutions -- with taxpayers on the hook," Wineland says. "Customers want a choice, as reflected by the demand by public safety customers and other US customers for DMR, a robust LMR alternative at a fraction of the cost of P25."
Hytera points out that Motorola Solutions has built a moat around the US public safety market, making continuous efforts to stall acceptance in the US of TETRA-compliant LMR. Hytera also notes that Motorola Solutions has engaged in a pattern of intimidation of LMR dealers. "Motorola Solutions brow-beats dealers into dropping Hytera's products or face losing the ability to sell Motorola Solutions' products and service lucrative maintenance contracts," notes Andrew Yuan, Hytera's President of North and South America, based in Irvine, Calif.
"Hytera provides feature-rich, high-quality solutions at a competitive price. Motorola Solutions is a monopolist charging US businesses a surcharge for safety, and those costs are passed on to taxpayers and the general public," adds Mark Jordan, Regional Sales Manager for Hytera Communications America (West). "Motorola Solutions is badgering dealers to drop Hytera, preventing adoption of standards that would lower prices for customers, and using courts to damage Hytera's relationships with LMR dealers and customers and raise our cost of doing business."
Hytera details how Motorola Solutions has engaged in a pattern of sham litigation and regulatory actions to raise costs for Hytera and sow anxiety in the market, diminishing competition. This includes suing Hytera for patent infringement on a set of standard essential technologies that industry users have agreed to license on fair, reasonable, and non-discriminatory (FRAND) terms, and for which Hytera has already been paying Motorola Solutions to license.
"Customers in the US deserve the best critical communications equipment and technology at the best prices," adds Wineland. "Customers love Hytera's products—and the value they receive. American customers are paying far more to Motorola Solutions and getting less, and Motorola Solutions is working hard to maintain that unfair pricing regime here."
Hytera Communications Corp., Ltd., et al. v. Motorola Solutions, Inc., 2:17-cv-12445 (D.N.J.) alleges that Motorola Solutions has violated federal and state antitrust law by violating Sections 1 and 2 of the Sherman Antitrust Act and Section 3 of the Clayton Act, and the unfair competition and intentional interference laws of the states of New Jersey, California and Florida. Hytera is seeking damages and injunctive relief.
Hytera is represented by Noah Brumfield, Jason Zakia, Yi Ying, and Jeremy K. Ostrander of White & Case LLP and by Liza M. Walsh, Tricia B. O’Reilly, Marc D. Haefner, Katherine Romano, and Katelyn O’Reilly of Walsh Pizzi O'Reilly Falanga LLP.
Hytera Communications Corporation Limited is a leading global provider of innovative professional land mobile radio (LMR) communications solutions to governmental organizations, public security institutions, and customers from other industries including transportation, oil and gas, and many others around the world. Founded in Shenzhen, China in 1993 and listed on the Shenzhen Stock Exchange (002583.SZ), Hytera has ten research and development centers around the world and has partnered with companies in the U.S. since 2000. Hytera established its first U.S. subsidiary, Hytera America, Inc., in 2004. It established Hytera Communications America (West), Inc., in 2016. Hytera owns PowerTrunk, Inc., and Sepura LLC, and has research and servicing facilities in Schaumburg, Ill. More information is at www.hytera.com.
Hytera Communications America (West), Inc.
Kevin Nolan, +1 469-206-8170
Director of Marketing
Om Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Følg saker fra Business Wire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Business Wire
Amobee Wins Auction Process to Acquire Videology Assets17.7.2018 13:13 | Pressemelding
Singtel subsidiary Amobee, a leading global digital marketing technology company serving brands and agencies, today announced that it has emerged as the winner in the court supervised auction to acquire certain assets from Videology, a software provider for advanced TV and video advertising, for purchase price of approximately US$101 million1. The purchase price is subject to adjustments for accounts receivable at closing, estimated to be approximately US$20.9 million. The acquisition, following Videology’s voluntary Chapter 11 restructuring proceedings, includes Videology’s technology platform, intellectual property and certain other assets of estimated net book value of US$5.3 million2. Over the past decade, Videology has emerged as a leading provider of software that empowers advertisers and publishers to use data to optimize campaigns and spend across digital platforms and television. The addition of Videology’s capabilities will be a further boost to Amobee’s omni-channel platform
Lenovo Leaps Forward with Next-Generation ThinkAgile Composable Cloud Platform17.7.2018 12:00 | Pressemelding
Lenovo Data Center Group (HKSE: 992) (ADR: LNVGY), one of the fastest growing hyperconverged infrastructure (HCI) vendors according to IDC, – with HCI revenue growing at almost twice the market growth rate in Q1 2018 (149.1% compared to 76.3%)—is further expanding its ThinkAgile portfolio to provide an innovative solution for customers who desire the agility of the public cloud and the security of a private cloud. To address this growing customer trend, Lenovo – together with Cloudistics – has developed the ThinkAgile CP Series composable cloud platform, a ‘cloud-in-a-box’ that offers all of the conveniences and ease-of-use of a public cloud environment secured behind the customer’s own data center firewall. Lenovo ThinkAgile CP Series – with fully-integrated infrastructure, application marketplace and end-to-end automation of software-defined network, compute and storage – delivers a turnkey cloud experience that can be easily and centrally managed from anywhere through a software-as-
JPMorgan Chase Bank launches offering of cash-settled exchangeable bonds into Ping An Insurance (Group) Company of China Limited due 202017.7.2018 12:00 | Pressemelding
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933) OR IN OR INTO JAPAN, THE PEOPLE’S REPUBLIC OF CHINA, SWITZERLAND OR ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW. JPMorgan Chase Bank, N.A. (the “Issuer”) today announces the launch of an offering of cash-settled exchangeable bonds due 2020 (the “Bonds”) in aggregate principal amount of up to approximately USD 350 million. The Bonds are referable to H-shares (the “Shares”) of Ping An Insurance (Group) Company of China Limited (the “Company”). Exchange rights in respect of the Bonds will be cash-settled only. The Issuer is rated A+ (Stable outlook) by Standard & Poor’s, Aa3 (Stable outlook) by Moody’s and AA (Stable outlook) by Fitch. The Bonds will be issued in principal amounts of USD 200,000 and integral multiples of USD 100,000 in excess thereof and will not bear interest.
Greene Tweed Achieves Nadcap Accreditation for Non-Metallic Materials Testing17.7.2018 11:01 | Pressemelding
Greene Tweed’s Central Engineering (CE) Materials Test Lab recently completed its final Nadcap accreditation audit for Non-Metallic Materials Testing (NMMT) of composite materials. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180717005200/en/ Greene Tweed Achieves Nadcap Accreditation (Photo: Greene Tweed) In support of Aerospace’s strategic initiative, this positions Greene Tweed as one of a select few aerospace companies who have attained this accreditation as validation of our materials testing capabilities and our position as a composite solutions provider. To achieve this standard, Greene Tweed’s CE lab completed a comprehensive audit against the highest standards for special process controls, test completion, and validation. This in-house accreditation adds to Greene Tweed’s responsiveness to new product development requests while expanding production material and customer product certification capabilities. It also
Norsk Titanium Collaborates with QuesTek Innovations LLC17.7.2018 11:00 | Pressemelding
Norsk Titanium (Norsk) and QuesTek Innovations LLC (QuesTek) announce a collaborative effort to test novel titanium alloys for applicability in additive manufacturing processes. As part of this collaboration, the companies are evaluating a QuesTek-designed titanium alloy using Norsk’s Rapid Plasma Deposition™ (RPD™) process. Preliminary evaluation of the alloy is complete and Norsk has manufactured initial test specimens. The test program will characterize the alloy microstructure, provide initial material properties, and will confirm QuesTek’s Ti alloy performance using Norsk’s proven production process. QuesTek’s patented titanium alloy has previously demonstrated approximately 15% greater strength and improved ductility over traditional Ti-6Al-4V in both wire-based Electron Beam Additive Manufacturing and traditional casting processes. "We are excited to be working closely with Norsk Titanium’s business and technical team to evaluate our alloy in their proven process. Based on our i
OpenGate Capital Signs Agreement to Acquire French, Belgium and Luxembourg Businesses from Gunnebo Group of Sweden17.7.2018 10:53 | Pressemelding
OpenGate Capital, a global private equity firm, announced today that it has signed a binding offer to acquire the French, Belgium and Luxembourg divisions of Gunnebo Group (GUNN: CPH), a leading provider of security products, services and solutions. The acquisition is expected to be completed in the fourth quarter of 2018. Terms of the transaction were not disclosed. Recognized as an integrated security solutions provider, the Gunnebo entities, which will be renamed post-closing, comprise two production sites and 12 sales branches in France, and a sales office in Luxembourg and Belgium. Throughout all regions, the business offers products and services across five lines: electronic security, security doors and partitions, safes and vaults, cash management and entrance control. The transaction will also include “Fichet Bauche,” a highly recognized name in quality safes and vaults. Gunnebo products and services are trusted security solutions chosen by a variety of customers including bank