Hytera shares surge by 10% as injunction suspended by US federal appeals court
Published: Apr 17, 2024 02:37 PM
Photo: IC

Photo: IC

Shenzhen-based Hytera, one of China's major telecommunication equipment makers, saw its share prices surge by its daily limit of 10 percent on Wednesday, as the company resumed sales of its two-way radio products globally following the suspension of an injunction by a US federal appeals court.

The company's share price stood at 3.71 yuan ($0.51), with a market capitalization of 6.74 billion yuan.

On Wednesday morning, the US Court of Appeals for the Seventh Circuit issued a ruling that suspends an injunction imposed by the District Court for the Northern District of Illinois on April 2, which halted the sales and distribution of any products containing two-way radio technology anywhere in the world, Hytera said in a filing with Shenzhen Stock Exchange.

The new court ruling takes effect immediately.

"The company will conduct close cooperation with global partners, and immediately resume normal business activities and the sales of related products," the company said in a statement.

On Wednesday, Hytera's two-way radio products including PNC360, G32 and S1 were on display for sale on Chinese e-commerce platforms including Taobao and A sales representative from Hytera's store on told the Global Times that consumers can now buy all the two-way radio products at its online store.

The incident arose from a conflict between Hytera and Motorola that can be traced back as far as seven years ago. In March 2017, Motorola accused the Chinese company of infringing trade secrets and US copyrights. In February 2020, a jury in the US court found that Hytera was "guilty" of infringing one or more of Motorola's trade secrets and US copyrights, ordering it to pay to Motorola infringement damages.

Hytera made a series of counterclaims against Motorola in China. From 2017 to 2022, the company has sued Motorola in Beijing, Guangzhou, and Shenzhen. According to a recent announcement released by Hytera, it was the Shenzhen lawsuit that triggered the order by the District Court for the Northern District of Illinois.