Motorola No 'Opportunistic' Rival in Backing FCC Ban of 3 Chinese Suppliers
Motorola Solutions, Inc. (MSI) is locked in a fight at the FCC with three Chinese equipment companies -- Hytera Communications, Hikvision USA and Dahua Technology USA -- on whether gear from suppliers on the FCC’s “covered list” of companies deemed to pose a security risk should be barred from being authorized for use in the U.S. MSI executives spoke with aides to Chairwoman Jessica Rosenworcel and Commissioners Brendan Carr and Nathan Simington.
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When the FCC sought comment last year, CTA and the Telecommunications Industry Association urged caution (see 2110200055). The three made the covered list last year (see 2103120058).
“MSI is not acting as an ‘opportunistic’ competitor or seeking a ‘commercial advantage’ in supporting the FCC’s proposed rules, despite claims by the Covered Entities otherwise,” the company said in the latest filing, posted Monday in docket 21-232: “Rather, MSI’s support is consistent with its long-standing commitment to ensuring the highest level of security for public safety, law enforcement, critical infrastructure, and governmental networks.”
MSI said complaints by the covered companies are barred by the Hobbs Act, which gives the federal courts of appeals “exclusive jurisdiction to enjoin, set aside, suspend (in whole or in part), or to determine the validity of ... all final orders” of the FCC. “Because no party -- including Hytera, Hikvision, Dahua -- challenged” last year’s order “its validity cannot now be collaterally attacked in this proceeding,” MSI said.
Dahua accused MSI of committing “errors of fact and law.” Dahua said it’s a publicly traded company with a diversified shareholder base: “Only a minor portion of Dahua Technology’s ownership is indirectly attributable to Chinese government-owned entities, and these stockholders have no representation on Dahua Technology’s board of directors or in its management.” There’s no “evidence in the record of this proceeding or otherwise that Dahua has committed any violation of the law or is anything other than a law-abiding company that seeks to meet the needs of its customers,” the company said. Dahua said MSI’s motivation is clear. “It is understandable that MSI may anticipate that the adoption of rules restricting the availability of equipment authorization to its competitors will work to its commercial advantage.”
“While Motorola couches its ex parte in legal terms, it does little to hide that its filing is really an opportunistic attack on Motorola’s competitors,” Hikvision said: “Contrary to Motorola’s argument, the Hobbs Act does not prevent Hikvision from challenging its placement on the Covered List now that appearing on the Covered List carries substantial new consequences.”
Motorola has been in a long-standing legal fight with Hytera over the alleged theft of trade secrets, the subject of a federal indictment in the Northern District of Illinois. Hytera “conspired with former employees of Chicago-based Motorola Solutions … to steal digital mobile radio (DMR) technology developed by Motorola,” the indictment charges. The company didn’t comment Monday.
FBI Special Agent Damien Colon alleged in an affidavit unsealed last week that Gee Siong Kok, a senior vice president who led Hytera’s "walkie-talkie" division, and eventually joined the company’s board, was recruited from MSI in 2007, then went on to recruit the other employees. He allegedly left a senior engineering job at Motorola for a 78% wage hike and stock options worth 22-times his previous annual salary. “Hytera’s alleged crimes have nothing to do with whether Hikvision is law-abiding,” Hikvision told the FCC.