(Yicai) April 8 -- Shares of Hytera Communications plunged by the exchange-imposed daily trading limit after a United States court issued a global market sales ban on two-way radio products made by the Chinese specialized communications equipment and solution provider on the grounds of contempt of court.

Hytera [SHE: 002583] closed down 10 percent at CNY4.24 (59 US cents) in Shenzhen today.

The US District Court for the Northern District of Illinois prohibited Hytera and all of its officers, agents, employees, affiliates, subsidiaries, distributors, and resellers from offering to sell, selling, importing, exporting, or distributing any products containing two-way radio technology anywhere in the world, the Shenzhen-based company announced today.

Two-way radio products contain two-way radio technologies, including portables, mobiles, base stations, and repeaters, as well as digital mobile radio products, terrestrial trunked radio products, cellular products, and analog products.

Hytera will also receive a USD1 million fine for each day until it is in full compliance with the court’s anti-suit injunction orders from the day the ruling was issued on April 2, the firm added.

Hytera will strictly comply with the requirements of laws and regulations, the firm added, noting that it is actively applying for the revocation of the judgment, but there are still uncertainties about the progress of the case. Hytera also advised investors to make cautious decisions and pay attention to investment risks.

In 2017, Motorola Solutions and an affiliate of the US telecommunications equipment provider filed a lawsuit against Hytera over intellectual property infringement of its H-series radio products in a US court. The case concluded in March 2020 with a ruling ordering Hytera to pay the plaintiff a total of USD765 million in compensation for damages and royalties for trade secrets and copyright infringements.

Hytera appealed to the 2020 ruling, and in June 2022, it opened a case at the Shenzhen Intermediate People’s Court to determine that its newly developed H-series products did not infringe the trade secrets and copyrights of Motorola and its Malaysian subsidiary and that such products should not be bound by the previous US court judgment.

Then, Motorola filed an anti-suit injunction motion to the US District Court for the Northern District of Illinois, asking that Hytera withdraw its lawsuit in Shenzhen and refrain from further pursuing a declaratory judgment that its H-series products do not infringe Motorola’s trade secrets and copyrights, which was granted on March 25.

The global market sales ban order was issued on April 2 after Hytera did not implement the ruling from March 25.

In 2022, Hytera’s revenue from professional wireless communication equipment manufacturing products accounted for 83 percent of the total revenue, and two-way radio technology-related products were its main products, according to the company’s 2022 earnings report.

Editor: Futura Costaglione