Hytera dealers say recommended sanctions in Motorola ITC case would harm competition, jeopardize their businesses

Seven U.S.-based Hytera Communications dealers have filed briefs with the U.S. International Trade Commission (ITC), asking the full commission not to limit the sale and service of certain Hytera product, noting that such sanctions would jeopardize their businesses and/or “severely limit our ability to serve the public.”

Submitted on Aug. 10, the briefs from the Hytera dealers are designed to be considered by the ITC, which is expected to decide by Nov. 6 whether to uphold a July recommendation from ITC Administrative Law Judge (ALJ) MaryJoan McNamara to prohibit Hytera from importing, selling or marketing products that infringe on Motorola Solutions patent within the United States.

None of those remedies could become effective until the ITC makes its ruling, so Hytera can import and sell its products in the U.S. in the meantime. If the ITC rules against Hytera, any remedy likely would become effective by early next year.

Hytera Communications continues to maintain that it has not infringed on Motorola Solutions patents. Even if the ITC determines that Hytera has violated patents, Hytera claims that the ITC should not impose the recommended penalties swiftly, because it would not be in the public interest—a position supported by all seven Hytera dealers submitting briefs.

Specifically, the dealers note that Motorola Solutions dominates the market for land-mobile-radio (LMR) technology and that Hytera products provide a key competitive alternative for critical-infrastructure, public-sector, education and enterprise customers.

“If the ALJ’s recommendation were to be adopted, schools and others who provide essential public services would not only pay more for Motorola’s LMR products, but they would be harmed by having less choice,” according to the brief from EdgeTech CEO Paul Coughlin. “Motorola LMRs, for example, do not have the same features that Hytera offers, features that many customers want in order to provide public services at a high level.”

California-based EdgeTech does not believe it would be able to “source any replacement product in a commercially reasonable time,” according to the Coughlin brief.

“Limiting the Hytera product line would severely limit our ability to serve the public,” the brief states. “In fact, the recommended order, if adopted, would put EdgeTech’s business at great risk

“EdgeTech has significant concerns that an exclusion order would enable Motorola to amplify its existing anti-competitive behavior. The Commission should accordingly not adopt the ALJ’s recommended order.”

Florida-based Baker’s Communications President Douglas Baker echoed this sentiment in his brief.

“Motorola does not offer the same product options as Hytera, and thus cannot replace the Hytera product line as-is,” Baker states in the brief. “Customers that cannot afford Motorola’s high-end products would have to give up many core safety features.

“Moreover, as a dealer, Baker’s is unable to source from Motorola, because they use Motorola-exclusive dealers and will not deal with Baker’s as a dealer of products that compete with Motorola, thus putting Baker’s and its employees, who has been in business for over 45 years, out of business.”

Wisconsin-based Nielson Communication expressed concern about the possible limitations that ITC sanctions could have on the ability for Hytera dealers to service existing systems.

“If any order were … to restrict our (and other independent dealers’) ability to repair and maintain our customers’ existing Hytera systems, consumers would be significantly harmed and important public services would be put at risk,” according to the brief from Nielson Communications President Steven Nielson. “Motorola, to my knowledge, has never provided service, maintenance or replacement parts for other manufacturers’ LMR systems; nor do other manufacturers. So, consumers with installed Hytera-based systems would not have an alternative for this critical product support.”