`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE NORTHERN DISTRICT OF ILLINOIS
`EASTERN DIVISION
`
`
`MOTOROLA SOLUTIONS, INC., and
`MOTOROLA SOLUTIONS MALAYSIA
`SDN. BHD.
`
`
`Plaintiffs
`
`
`v.
`
`HYTERA COMMUNICATIONS
`CORPORATION LTD.,
`HYTERA AMERICA, INC., and
`HYTERA COMMUNICATIONS
`AMERICA (WEST), INC.
`
`Defendants
`
`CASE NO. 1:17-cv-1973
`
`
`
`
`COMPLAINT
`
`
`
`
`DEMAND FOR A JURY TRIAL
`
`
`))))))))))))))))
`
`
`COMPLAINT
`
`Plaintiffs Motorola Solutions, Inc. (“Motorola US”) and Motorola Solutions Malaysia
`Sdn. Bhd. (“Motorola Malaysia”) (collectively “Motorola,” or “Plaintiffs”) allege as follows
`against Defendant Hytera America, Inc., Hytera Communications Corporation Ltd., and Hytera
`Communications America (West), Inc. (collectively “Hytera” or “Defendants”). The
`allegations herein are made based on personal knowledge as to Motorola with respect to its
`own actions, and upon information and belief as to all other matters.
`INTRODUCTION
`
`1.
`
`Motorola has been building its radios and its reputation for almost a century,
`
`and Hytera tried to hijack both in just a few months—and continues to do so to this day.
`
`Founded in 1928 in Chicago, Motorola has built and maintained its position as the innovation
`
`leader, at home and abroad, in radio equipment and infrastructure technologies. In particular,
`
`Motorola has invested its considerable expertise and creativity in developing cutting-edge
`
`digital two-way radio communication systems, which it supplies to thousands of public safety
`
`organizations, emergency response teams, transportation and logistics organizations, and
`
`
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 2 of 34 PageID #:1
`
`numerous other customers involved in hospitality, manufacturing, education, utilities, oil and
`
`gas, and retail throughout the United States and around the world.
`
`2.
`
`Motorola’s global leadership in this sophisticated technical field does not come
`
`cheap. For many years, Motorola has employed thousands of engineers in Illinois, other parts
`
`of the United States, and various countries throughout the world, and spends hundreds of
`
`millions of dollars annually to research new technologies and to develop a wide range of digital
`
`radio products and solutions for feature-rich, seamless communication in rapid response
`
`networks across many industries and mission-critical applications. Motorola’s substantial
`
`investments in research and other forms of innovation require protection, and Motorola relies
`
`on its trade secrets, in addition to its copyrights, patents, and trademarks, to guard the
`
`intellectual property created by the ingenuity and industry of its employees.
`
`3.
`
`Hytera’s story is the opposite. Hytera’s story is not one of innovation, but
`
`rather about misappropriation, misuse, copying, and intentional efforts to hide its misconduct
`
`from detection. Unlike Motorola, Hytera has not invested the human effort and financial
`
`capital in the substantial time-consuming research required to produce truly innovative
`
`technologies and products. Founded in 1993 in Shenzhen, China, Hytera served as a
`
`distributor for Motorola products until 2001, and since then has operated as a supplier of
`
`mostly analog radio products, although many customers require the sophisticated digital
`
`products of the kind that Motorola designs and produces. Significantly, by the time Hytera
`
`began developing its digital two-way radio technologies, Motorola had already pioneered the
`
`field, and had established its digital two-way radio technologies as the leading communications
`
`solution for public works, industry, government, non-profit, and commercial applications. In
`
`fact, Motorola’s success in the digital two-way radio field had rendered Hytera’s outdated
`
`analog systems obsolete, providing Hytera a motive to take steps to compete through any
`
`
`
`2
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 3 of 34 PageID #:1
`
`means available. Complicating matters further for Hytera during this same time period, the
`
`United States Federal Communications Commission set a deadline that effectively required
`
`suppliers of radio products to use digital technology.
`
`4.
`
`Knowing that its analog radio products faced extinction, and that it could not
`
`hope to develop its own digital two-way radios in time to save its ailing business, Hytera
`
`embarked on an unlawful plot to surreptitiously take Motorola’s confidential and proprietary
`
`trade secrets, and use those trade secrets to build a competing product. Indeed, as its executive
`
`team acknowledged, Hytera’s main product line—analog radios—was quickly becoming
`
`“obsolete,” and its digital radios had to be developed at a “very quick pace.”1 Thus, Hytera
`
`was faced with a choice: engage in time-consuming and resource-intensive development of its
`
`own digital product line, or simply take Motorola’s technology, without permission, in order to
`
`get a product out to market (in Hytera’s words) “at a very quick pace.” Hytera chose the latter:
`
`rather than design its own digital two-way radio products to compete fairly in the marketplace,
`
`Hytera instead built its current digital two-way radio business by misappropriating Motorola’s
`
`proprietary technologies and critical business strategies. This included copying Motorola’s
`
`innovations—from replicating key technologies in Motorola’s products, right down to copying
`
`the Motorola technical documentation describing them.
`
`5.
`
`Hytera’s plan to steal Motorola’s technologies was a multi-faceted one, but
`
`included as a central pillar a plot to target Motorola from the inside, through its personnel—
`
`namely, by recruiting Motorola personnel who had substantial access to Motorola’s proprietary
`
`technologies, and who downloaded thousands of confidential technical documents in the weeks
`
`prior to their departures. Specifically, in order to break into the digital two-way radio market,
`
`beginning as early as 2008, Hytera lured away several Motorola senior radio engineers who
`
`
`1 See https://www.youtube.com/watch?v=twxZXiWeNZQ.
`
`
`
`3
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 4 of 34 PageID #:1
`
`were extensively familiar with Motorola’s technologies and intellectual property. Three
`
`Motorola senior engineers were hired by Hytera and currently hold senior positions at Hytera:
`
`Gee Siong Kok (“G.S. Kok”), who formerly served as Senior Engineering Manager at
`
`Motorola, and now serves as Senior Vice President and Terminal Chief at Hytera; Samuel Chia
`
`(“Chia”), who formerly served as Senior Engineer and Engineering Section Manager at
`
`Motorola, and now serves as the Director of Software Engineering at Hytera; and Yih Tzye
`
`Kok (“Y.T. Kok”), who formerly served as a Senior Engineer at Motorola, now serving as
`
`Sales Director at Hytera (collectively the “Hytera Employees”).
`
`6.
`
`During their years of employment at Motorola, Motorola trusted these Hytera
`
`Employees to work extensively with Motorola’s confidential information on highly sensitive
`
`and proprietary products and technology. While at Motorola, they were privy to proprietary
`
`technical documents and design ideas; they were aware of Motorola’s product planning,
`
`research and development efforts; and they were intimately familiar with Motorola’s digital
`
`radio development efforts, including those related to the technologies at issue in this case. And
`
`while that knowledge alone presented incalculable value to Hytera, in the weeks prior to their
`
`resignations from Motorola (and unbeknownst to Motorola), the Hytera Employees
`
`surreptitiously downloaded and misappropriated more than 7,000 technical, marketing, sales,
`
`and legal documents related to Motorola’s digital radio and infrastructure products. Critically,
`
`many of these unlawfully-downloaded documents provided Motorola’s specific technology
`
`implementations, and other highly detailed
`
`technical information relating to critical
`
`technologies at issue in this case, providing an unlawfully obtained roadmap to Hytera about
`
`how to implement key features developed by Motorola over the course of many years. Hytera
`
`relied on, and continues to rely on, Motorola’s trade secret information collected from sources
`
`including the Hytera Employees, to develop and supply its digital two-way radio products, and
`
`
`
`4
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 5 of 34 PageID #:1
`
`the ongoing sales of those products in the United States continue to perpetrate the
`
`misappropriation of Motorola’s trade secrets. Egregiously, and notwithstanding its unlawful
`
`conduct, Hytera publicly touts the very innovations it took from Motorola as its own
`
`“innovation[s],”2 evidencing a degree of wanton misappropriation rarely seen even in cases
`
`like these.
`
`7.
`
`Hytera and the newly employed Hytera Employees knew that the information
`
`they downloaded without permission was confidential, and knew that those documents were
`
`replete with Motorola’s trade secrets. Despite this knowledge, Hytera simply copied and used
`
`these critical trade secrets in its own competing products—products that bear the hallmarks of
`
`Motorola’s innovation, product development, and technical and business strategies. Hytera’s
`
`misappropriation was deliberate, wholesale, and systematic—not only did Hytera take and then
`
`copy Motorola’s technical trade secrets, it even copied the marketing, configurations, and
`
`product manuals related to the misappropriated features as well, leaving no doubt about its
`
`unlawful scheme.
`
`8.
`
`The Hytera Employees—and by extension, Hytera itself—intentionally hid their
`
`wrongful conduct from Motorola, to ensure it would not be discovered until years later.
`
`Motorola undertakes substantial precautions to ensure that its highly confidential information is
`
`not misused, including by restricting access to only its trusted employees that have a need for
`
`such access. Motorola also requires those employees not only to execute confidentiality
`
`agreements upon commencement of their employment, but also to confirm their understanding
`
`of their obligations at the time of their departure, and affirmatively represent to Motorola upon
`
`their termination that they had not retained any Motorola confidential information.
`
`
`
`2 See, e.g., Hytera DMR Introduction presentation, at 40 (available at:
`http://www.w4cll.com/Digital/TDMA/HyteraIntro.pdf).
`
`
`
`5
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 6 of 34 PageID #:1
`
`9.
`
`Motorola also employs robust technical protections in its systems to detect and
`
`thwart unauthorized downloads and access to its confidential and sensitive information, and
`
`that technology has improved substantially in recent years over what was available in 2008.
`
`Due at least in part to their elevated positions with Motorola, the Hytera Employees were able
`
`to evade Motorola’s then-existing measures through a series of serious misrepresentations and
`
`carefully planned illegal acts, all of which took advantage of Motorola’s trust in its senior
`
`product staff and the Hytera Employees’ intimate knowledge of Motorola’s systems. As a
`
`result of their illegal conduct and misrepresentations, the Hytera Employees ensured Motorola
`
`would not become aware of the Hytera Employees’ conduct, and by extension, Hytera’s
`
`misappropriation, until years after the Hytera Employees left their employment at Motorola to
`
`go to work (unbeknownst to Motorola) at Hytera.
`
`10.
`
`Hytera’s brazen misappropriation and theft of trade secrets leave Motorola no
`
`choice but to file this lawsuit seeking injunctive relief and recovery of damages for the harm
`
`that has been caused by Hytera’s illegal conduct. Hytera did not even attempt to compete
`
`fairly with Motorola; rather than develop its own digital two-way radio products, it instead
`
`took a short-cut to the marketplace by stealing Motorola’s trade secrets and copying
`
`Motorola’s proprietary innovations. Such conduct makes investments in technology pointless
`
`and costly, and harms American companies and the economy in critical ways. Unless halted,
`
`Hytera’s illegal actions will serve as a roadmap for other companies who have not invested in
`
`research and development themselves to steal the trade secrets of their competitors, and violate
`
`the intellectual property rights of true innovators. Simply put, Hytera’s conduct must be
`
`stopped.
`
`
`
`6
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 7 of 34 PageID #:1
`
`THE PARTIES
`
`11.
`
` Motorola Solutions, Inc. is a company organized and existing under the laws of
`
`Delaware having a principal place of business at 500 W Monroe St, Chicago, IL 60661.
`
`12. Motorola Solutions Malaysia Sdn. Bhd. is a Malaysian corporation having its
`
`principal place of business at Level 18, The Gardens North Tower, Mid Valley City, Linkaran
`
`Syed Putra, Kuala Lumpur, Labuan 59200, Malaysia.
`
`13.
`
`Defendant Hytera Communications Corporation Ltd. is a company organized
`
`and existing under the laws of the People’s Republic of China, with its principal place of
`
`business at Hytera Tower, Hi-Tech Industrial Park North, #9108 Beihuan Road, Nanshan
`
`District, Shenzhen, People’s Republic of China.
`
`14.
`
`Defendant Hytera America, Inc. is a company organized and existing under the
`
`laws of Florida with its principal place of business at 3315 Commerce Pkwy, Miramar, FL
`
`33025.
`
`15.
`
`Defendant Hytera Communications America (West), Inc. is a company
`
`organized and existing under the laws of California with its principal place of business at 300
`
`Spectrum Center Dr., Suite 1120, Irvine, California 92618.
`
`JURISDICTION AND VENUE
`
`16.
`
`This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 2201,
`
`2202, and the trade secret laws of the United States, 18 U.S.C. §§ 1836 and 1839. This Court
`
`also has supplemental jurisdiction over the asserted state law claims pursuant to 28 U.S.C. §
`
`1367(a) because the federal and state law claims derive from a common nucleus of operative
`
`facts. This Court further has jurisdiction over the asserted state law claims pursuant to 28
`
`U.S.C. § 1332 because there is complete diversity of citizenship among the parties and an
`
`amount in controversy in excess of $75,000.
`
`
`
`7
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 8 of 34 PageID #:1
`
`17.
`
`This Court has personal jurisdiction over all of the Defendants. Personal
`
`jurisdiction exists generally and specifically over all of the Defendants because they (directly
`
`and/or through their subsidiaries, divisions, groups or distributors) have sufficient minimum
`
`contacts with the Northern District of Illinois as a result of substantial business conducted
`
`within the State of Illinois. For example, Defendants distribute their products that contain the
`
`misappropriated technology through a number of District- and Illinois-based distributors,
`
`including Lakeland Communication Service, Ragan Communications, A Beep, and Concept
`
`Wireless Communications, Inc. Defendants have also distributed their products containing the
`
`misappropriated technology to customers in this District and the State of Illinois, including the
`
`University of Illinois.3 As such, Defendants have demonstrated that they are ready and willing
`
`to conduct business with residents of this District and the State of Illinois, and actively do so.
`
`18.
`
`Defendants also employ individuals in this District and the State of Illinois,
`
`including in Chicago4 and claim that their “Global Presence” is based, in part, in Chicago, IL.5
`
`Defendants have further availed themselves of contacts and business in this District and the
`
`State of Illinois by actively advertising and promoting the products that contain the
`
`misappropriated technology. For example, on November 2, 2016, G.S. Kok, Hytera’s Senior
`
`Vice President delivered the keynote of Hytera’s future plans in the digital radio market (which
`
`
`
`3 See http://wiki.radioreference.com/index.php/University_of_Illinois_at_Urbana-Champaign; see
`also https://www.slideshare.net/rosebrown156/hytera-introductionfor-customers at slide 7.
`
`4
`
`See https://lautanjobs.com/logistics-coordinator-jobs-hytera-communications-america-
`west.b0c61a8d02aa0acb; see also https://www.indeed.com/cmp/Hytera-America/jobs/Logistic-
`Coordinator-b0c61a8d02aa0acb?q=Transport+West.
`
`5 See https://tandcca.com/fm_file/tetrainchile2015hytera-pdf/ at slide 11 (titled “Hytera Global
`Presence”, and specifically naming and pointing at Chicago as a location that is part of its “Global
`Presence”).
`
`
`
`8
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 9 of 34 PageID #:1
`
`include Hytera’s use of Motorola’s trade secrets) at a conference held in Chicago, IL.6 Seven
`
`executives of Hytera attended this conference in Chicago, including Hytera America’s
`
`president, Mr. Andy Zhao, in order to, among other things, increase sales in this District and
`
`the State of Illinois of products that contain Motorola’s misappropriated technology.7
`
`19.
`
`Personal jurisdiction also exists specifically over all the Defendants because
`
`they have each committed acts of misappropriation in this District and the State of Illinois,
`
`because they each directly and/or through their subsidiaries, divisions, groups, or distributors,
`
`advertise, market, use, offer for sale, import for sale and/or sell the products at issue in this
`
`case containing the misappropriated technology in this District and the State of Illinois, and
`
`place those products in the stream of commerce with the expectation and knowledge that they
`
`will be purchased by consumers in this district. Further, Hytera’s misappropriations involved
`
`certain trade secrets that were invented in, stored in, or accessed from this District and the State
`
`of Illinois. As such, Defendants have committed tortious acts in this District and the State of
`
`Illinois; have expressly aimed their actions at this District and the State of Illinois with the
`
`knowledge that they would cause harm and substantial injury to Motorola in the District and
`
`the State of Illinois; and Motorola’s claims relate to Defendants’ products containing
`
`technology misappropriated from Motorola and advertised, marketed, used, offered for sale,
`
`imported, and/or sold in this District and in the State of Illinois.
`
`20.
`
`Venue is proper in this Court pursuant to 28 U.S.C. § 1391(b) because Hytera
`
`transacts business in this district, has misappropriated trade secrets in this district, and is
`
`subject to personal jurisdiction in this district. In addition, venue is proper because Motorola is
`
`
`
`6 See http://www.hytera.us/Catalogs/Contents.aspx?id=213;
`http://www.criticalltecommunications.net/program-day-one/.
`
`7 See http://urgentcomm.com/hytera/hytera-andy-zhao-outlines-companys-technology-roadmap-lte-
`other-next-generation-products.
`
`
`
`9
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 10 of 34 PageID #:1
`
`headquartered in this District; has made significant investments of both equipment and
`
`engineering talent in this District; stores in or invented in this District certain of the trade
`
`secrets at issue in this case; and has suffered harm in this District.
`
`ADDITIONAL FACTUAL ALLEGATIONS
`
`A. Motorola Pioneers Digital Two-Way Radio Technology
`In the United States and around the world, Motorola leads the industry in two-
`21.
`
`way digital radio products, technologies, and supporting infrastructure and systems. Ever since
`
`the company’s founding in 1928, Motorola’s engineers and technicians have focused on
`
`developing the hardware, software, and systems necessary to create innovative and durable
`
`products that enable rapid and seamless communications in a variety of different organizations
`
`and environments, from construction sites to emergency dispatch systems to school bus
`
`networks.
`
`22.
`
`Such commitment to cutting-edge innovation in the service of customers—
`
`whether they are enterprises, public safety organizations like police and fire departments, or
`
`emergency medical providers—does not come cheaply. Motorola has always invested heavily
`
`in research and development, spending more than $3.5 billion in the last five years alone, along
`
`with the time, dedication, and creativity of hundreds of Motorola engineers, technicians, and
`
`other staff.
`
`23. Motorola’s innovation and market leadership were praised by many in the
`
`industry who recognized that Motorola “is creating a new era in data-rich public safety
`
`communications…. Its core business is unrivaled in the United States and around the world
`
`with a broad and loyal customer base, an outstanding record of reliability and growing reach
`
`
`
`10
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 11 of 34 PageID #:1
`
`and scale driven by technology innovation.”8 Others have noted that “Motorola Solutions is a
`
`leading provider of mission-critical communication solutions and services for enterprise and
`
`government customers. Through leading-edge innovation and communications technology, it
`
`is a global leader that enables its customers to be their best in the moments that matter.”9
`
`24.
`
`As an industry leader in two-way radio products, Motorola has expended
`
`considerable resources to research, design, develop, and bring to market new and innovative
`
`technologies that have revolutionized the radio and telecommunications industries. One such
`
`innovation is the digital two-way radio technology which Motorola pioneered.
`
`25. Motorola provides its proprietary digital two-way radio technology and features
`
`under the brand name MotoTRBO. Motorola’s digital two-way radio technology and features
`
`are carefully tailored—based on Motorola’s extensive research and testing—to meet the
`
`requirements of public safety and professional organizations that need a customizable, mission-
`
`critical, private communication solution using licensed spectrum.
`
`26. Motorola’s MotoTRBO technology is a full product platform that includes
`
`portable and mobile radio devices, repeaters and controllers, accessories, data applications, and
`
`services that provide a comprehensive two-way digital radio solution.
`
`
`
`8 See Law360, “Silver Lake Backs Motorola Solutions With $1B Investment,” (August 5, 2015)
`(available at: https://www.law360.com/articles/687546/silver-lake-backs-motorola-solutions-with-
`1b-investment).
`
`9 See http://markies.eloqua.com/entrant/motorola-solutions.
`
`
`
`
`
`11
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 12 of 34 PageID #:1
`
`Exemplary MotoTRBO system
`
`27.
`
`In operation, the MotoTRBO system converts an analog signal that represents
`
`an acoustic waveform into a digital signal. The system then performs voice encoding
`
`(vocoding) that compresses the signal to fit into a radio channel. The encoded audio and
`
`accompanying data are then organized into frames for transmission. The signal is then sent on
`
`a single time-slot over a two-slot TDMA 12.5 kHz channel.
`
`MotoTRBO Digital Radio System
`
`
`
`28.
`
`As part of its industry-leading MotoTRBO digital radio technology, Motorola
`
`has developed proprietary digital voice and data innovations that offer great benefits to digital
`
`two-way radio users. These proprietary innovations include features that can provide
`
`efficiency together with enhanced digital capabilities and provide exceptional voice quality,
`
`integrated data applications, increased capacity, and extended battery performance, among
`
`other improvements—and have made Motorola’s current MotoTRBO technology the most
`
`advanced in the industry. Motorola’s feature-rich MotoTRBO technology integrates
`
`proprietary innovations, implemented both in hardware and software, that relate to every aspect
`
`of Motorola’s digital two-way radio systems, such as emergency features, telephony support,
`
`integrated GPS and location services, digital data applications, and enhanced voice features to
`
`allow ease of migration from analog to digital systems. The design, development, and
`
`implementation of these features in Motorola’s MotoTRBO hardware and software include
`
`Motorola’s confidential and proprietary technology and trade secrets.
`
`
`
`12
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 13 of 34 PageID #:1
`
`29.
`
` One example of Motorola’s proprietary MotoTRBO feature is Voice Operated
`
`Transmission (“VOX”), which provides invaluable benefits to end users by enabling hands-
`
`free communication, i.e., without any push-to-talk action. Motorola’s enhanced VOX uses
`
`specialized hardware and software to monitor the device microphone for voice activity and
`
`begins transmission upon detection, allowing users to communicate while still having full use
`
`of their hands, thereby enhancing safety and efficiency.
`
`MotoTRBO System Planner at 131.
`
`
`
`30.
`
`Another proprietary feature developed and implemented by Motorola in its
`
`MotoTRBO line of products is Telemetry functionality that enables a radio to remotely control
`
`and monitor the GPIO (General Purpose I/O) pins of a target radio. This functionality enables
`
`remote controlling and monitoring of equipment, for example in industrial or agricultural
`
`environments.
`
`
`
`13
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 14 of 34 PageID #:1
`
`
`
`
`
`MotoTRBO System Planner at 205.
`
`31.
`
`As another example, Motorola developed a Dynamic Mixed Mode Priority
`
`Scan feature that enables a user’s radio to dynamically switch between analog and digital
`
`modes depending on the type of call received.
`
` MotoTRBO System Planner at 15.
`
`32. Motorola has also developed location based services that rely on integrated
`
`GPS functionality in its MotoTRBO devices. Motorola’s location services enable, for
`
`
`
`14
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 15 of 34 PageID #:1
`
`example, a dispatcher to determine the current location of a radio on a display map, along with
`
`other information such as speed and direction.
`
` MotoTRBO System Planner at 51.
`
`
`
`33.
`
`One specific proprietary feature within MotoTRBO’s location services
`
`innovations is the GPS Revert Channel feature, which removes location data from a selected
`
`channel into a dedicated channel, thus freeing the selected channel to accommodate increased
`
`voice traffic.
`
` MotoTRBO System Planner at 54.
`
`
`
`
`
`15
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 16 of 34 PageID #:1
`
`34. Motorola’s MotoTRBO technology also includes a Digital Telephone Patch
`
`(DTP) feature that enables direct communication between radio devices and telephone devices,
`
`in both an individual call mode and talkgroup mode that enables communication between a
`
`phone user and a group of radio users through a half-duplex voice communication.
`
` MotoTRBO System Planner at 138.
`
`
`
`35.
`
`Another set of proprietary features supported in Motorola’s MotoTRBO
`
`technology are emergency features that enable a user in distress to send an emergency alarm
`
`message that contains the individual radio identification of the user. Such emergency features
`
`include, for example, a proprietary implementation of the emergency “Lone Worker” feature
`
`to enhance safety for users who work remotely from others, including those operating
`
`machinery and on security patrols. The Lone Worker feature is able to detect when a user’s
`
`activity has stopped and, based on a pre-determined activity timer, initiate an emergency
`
`signal. Another example is the emergency “Man-Down” feature which detects when the
`
`radio, and by extension its user, is in a horizontal orientation and initiates an emergency signal.
`
`
`
`16
`
`
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 17 of 34 PageID #:1
`
`
`
` MotoTRBO System Planner at 34, 132.
`
`36.
`
`These exemplary proprietary features demonstrate just some of Motorola’s
`
`substantial and sustained investment in its MotoTRBO technology. Underlying these
`
`technologies are significant technical know-how and other carefully guarded trade secrets that
`
`Motorola has developed over the course of many years. These efforts resulted in substantial
`
`trade secrets that, together with other Motorola intellectual property, have made Motorola’s
`
`current MotoTRBO technology the most advanced in the industry. For these reasons and
`
`others, Motorola’s MotoTRBO technology and the secret implementation details of its
`
`proprietary features and processes are some of Motorola’s most valuable assets.
`
`B. Motorola Protects Its Trade Secrets
`As a leader in the digital radio industry, Motorola has expended considerable
`37.
`
`resources in R&D, which resulted in volumes of confidential trade secrets. For example, in
`
`2015, Motorola invested $620 million in R&D, which represents 10.9% of its sales during the
`
`same year. Between 2011 and 2014, Motorola invested R&D amounts that range between
`
`$681-790 million annually. As a result of its substantial investments and decades-long
`
`dedication to innovation, Motorola has been awarded thousands of patents covering, among
`
`other things, its digital two-way radio technology. In addition, significant aspects of
`
`Motorola’s products are highly confidential, and are maintained by Motorola in strict
`
`
`
`17
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 18 of 34 PageID #:1
`
`confidence as trade secrets to protect their value and the substantial investments Motorola has
`
`made to develop them. Indeed, this confidential information derives considerable value from
`
`not being publicly known outside of Motorola.
`
`38. Motorola protects its trade secrets in numerous ways, including by restricting
`
`access to confidential information only to select individuals, and even then, only subject to
`
`strict confidentiality and non-disclosure agreements. For example, as a condition of their
`
`employment and as part of their employment agreement, Motorola’s employees—including the
`
`Hytera Employees—sign confidentiality agreements pursuant to which they agree, among
`
`other things, to not make improper use of any of Motorola’s confidential information or trade
`
`secrets.
`
`“In consideration of my employment, or continued employment by
`Motorola, Inc. or its subsidiaries (referred to separately or jointly
`as “Motorola”) and the salary or wages paid to me, I understand
`and agree to the following provisions for the protection of
`Motorola property rights:
`
`…
`2. Not to use, or to publish, or to otherwise disclose to others,
`either during or subsequent to my employment by Motorola, any
`confidential information of Motorola or its customers, except as
`my Motorola duties may require.
`3. Upon termination of my employment by Motorola, to promptly
`deliver to a designated Motorola representative all documents
`and other records which relate to the business activities of
`Motorola, or any other materials which belong to Motorola.”
`
`Motorola Employment Agreement (emphasis added).
`
`39.
`
`Consistent with this practice, the Hytera Employees also entered into
`
`employment agreements with Motorola in which they “agree[d] to [certain] provisions for the
`
`protection of Motorola’s property rights.” For example, on or around May 15, 1997, Y.T. Kok
`
`and Motorola entered into an Employment Agreement in which Y.T. Kok acknowledged that
`
`
`
`18
`
`
`
`Case: 1:17-cv-01973 Document #: 1 Filed: 03/14/17 Page 19 of 34 PageID #:1
`
`he had read and understood the requirements of Motorola’s Standard Operating Procedure
`
`(SOP) E-62 form regarding the “Appropriate Use of Computer Resources,” which states that
`
`“[i]t is the policy of Motorola to protect confidential, sensitive or critical information owned by
`
`Motorola or in Motorola custody, and also to protect specific information as required by
`
`applicable law.” Motorola’s Standard Operating Procedures expressly forbid “[d]isclosing
`
`confidential or sensitive information which is owned by or entrusted to Motorola to
`
`unauthorized recipients.” Motorola’s Standard Operating Procedures further prohibited
`
`“[a]ccessing confidential or sensitive information on computer resources without
`
`authorization.”
`
`40.
`
`Chia entered into a similar employment agreement with Motorola on August 23,
`
`1999, in which Chia acknowledged