Expert Analysis by Quandary Peak Research Contributes to Guilty Plea in High-Profile Technology Theft Case

LOS ANGELES, Feb. 3, 2025 /PRNewswire/ -- Hytera Communications Corp., a Chinese communications company, pleaded guilty to felony conspiracy charges January 13, 2025. The case, brought by the United States Department of Justice (DOJ), centered on the theft of trade secrets from Motorola Solutions, Inc., in violation of Title 18, United States Code, Section 1832(a)(5). This outcome represents a substantial victory in the fight against intellectual property theft.

Under the terms of the plea agreement, Hytera admitted to conspiring to steal trade secrets related to Motorola's Digital Mobile Radio (DMR) technology. The sentencing hearing, scheduled for November 6, 2025, will determine the penalty, which may include fines calculated as a multiplier of the stolen trade secrets' value. The U.S. District Court for the Northern District of Illinois has set the multiplier range between 1.80 and 3.60.

Case Background and Legal Proceedings

The criminal case followed a series of legal actions initiated by Motorola. In 2017, Motorola filed a civil lawsuit against Hytera for copyright infringement and trade secret misappropriation, resulting in a $765 million jury award (later reduced on appeal). In 2021, the DOJ indicted Hytera and seven former Motorola employees on 21 counts, alleging a conspiracy to steal Motorola's DMR trade secrets.

Under U.S. law, trade secret theft involves the misappropriation of proprietary information through improper means, which include theft, bribery, misrepresentation, breach of duty to maintain secrecy, or espionage—though independent development or reverse engineering are not considered improper. A trade secret is broadly defined as business or technical information that derives economic value from not being generally known and is protected through reasonable secrecy measures.

To establish a violation, prosecutors must prove that the defendant knowingly misappropriated such information to benefit someone other than its rightful owner, resulting in harm. In the case of Hytera, the DOJ successfully demonstrated these elements, leading to the company's guilty plea.

Quandary Peak Research's Role in the Case

Quandary Peak Research, a Los Angeles-based software analysis firm with experts across the country in Silicon Valley, Chicago, Austin, and Nashville, was engaged by the DOJ to provide expert technical analysis and court testimony. Two of its experts, William Luk and Cindy Grall, played a pivotal role in the case by establishing that Motorola's trade secrets were located within the United States and therefore helping to rebut Hytera's claims.

Hytera argued that its actions occurred outside the U.S., with data stored in Asia and accessed by employees in Motorola's Malaysian office. However, using evidence from Motorola, FBI interview transcripts, and technical analysis, Quandary Peak's experts demonstrated otherwise.

Looking Ahead

This landmark case underscores the importance of rigorous technical analysis in safeguarding intellectual property. The guilty plea not only highlights Hytera's culpability but also sets a strong precedent for addressing corporate espionage and trade secret theft in the global technology sector.

Meet the Software Experts Behind the Case

As Regional Director of Northern California at Quandary Peak Research, William Luk leads the firm's software litigation services in the Bay Area, specializing in complex technology disputes. Since joining Quandary Peak in 2021, he has provided expert analysis and testimony in high-stakes litigation involving computer security, complex software patents, trade secrets, software misrepresentation, and non-disclosure disputes. With a career spanning software engineering to executive leadership, William has held key roles in multiple technology companies, gaining deep expertise in software development, architecture, and security. Notably, he was part of the team that developed the first firewall designed to protect The White House, which was later integrated into enterprise security solutions used by Fortune 100 companies.

Cindy Grall is a Senior Software Consultant at Quandary Peak Research, where she specializes in software architecture analysis and design for complex, real-world systems. Since joining the firm in 2023, she has applied her expertise to a range of litigation matters, providing in-depth technical evaluations for legal teams and government agencies. Before joining Quandary Peak, Cindy worked on cutting-edge security solutions for the U.S. government and Fortune 100 companies, developing and analyzing advanced software systems to mitigate cybersecurity risks. Her experience spans software development, secure systems design, and forensic analysis, making her a valuable asset in cases involving software disputes and trade secret investigations.

About Quandary Peak Research

Quandary Peak Research provides expert analysis of complex technology to companies, law firms, and investors. Quandary Peak's clients utilize their computer and software expertise in different types of civil litigation, including cases alleging patent infringement, copyright infringement, trade secret misappropriation, and breach-of-contract, among others. Software experts at Quandary Peak perform source code analysis, technical due diligence, software quality audits, and forensic investigations. Quandary Peak experts also testify as expert witnesses at hearings and trials in U.S. District Court, state courts, the International Trade Commission (ITC), the U.S. Patent and Trademark Office (USPTO), and other venues.

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SOURCE Quandary Peak Research