Huawei drops lawsuit against USA government after its telecom equipment is returned

Marco Green
September 10, 2019

"Huawei views the decision to return the technology as a tacit admission that the seizure was unlawful and arbitrary", said Huawei in its announcement, which also revealed that the lawsuit has been dropped as a effect.

The US government alleges that Chinese professor, Bo Mao, gained access to a Calfornian company's circuit board technology and attempted to reverse-engineer the board and provide those details to a "Chinese telecommunications conglomerate".

Huawei still faces multiple criminal charges in the United States for allegedly breaking US export sanctions to countries including Iran.

He pleaded not guilty in the US District Court in Brooklyn on August 28 to a charge of conspiring to commit wire fraud.

During his time at the University of Texas, Mao had entered into a licensing and non-disclosure agreement with the Californian company to access the circuit board technology, stating that the technology would only be used for academic research purposes.

However, the Commerce Department also said it would add 46 more companies to its list of Huawei subsidiaries and affiliates that would be covered by the ban if it is implemented in full - taking the total on the list to more than 100.

In December 2017, Huawei sued CNEX and a former employee, Yiren Huang, for stealing trade secrets.

As Reuters reported, the involved jury in June decided that neither Huawei nor CNEX were entitled to damages.

A spokesman for the U.S. Attorney's Office in Brooklyn declined to comment, as did a lawyer for Prof.

The company said that it had "landed a de facto victory" despite its voluntary dismissal of the lawsuit, but noted that it was still "disappointed by the fact that the USA government has failed to provide any explanation for unlawfully withholding Huawei equipment for so long".

The statement noted that none of its core technology had been subject to a criminal case and claimed that accusations made by the United States government have not been supported by sufficient evidence.

In January, US prosecutors announced an indictment against Huawei for trade secret theft involving T-Mobile, following a civil case between those companies.

The United States has also lobbied other governments to ban Huawei equipment and banned companies from supplying Huawei with USA components without special licences, ratcheting up tension between China and the United States as the countries engage in a tit-for-tat trade war.

A Justice Department spokesman said last week that while the department does not comment on specific investigations, it complies with the law and all subjects "enjoy the same rights to due process afforded by our Constitution and safeguarded by an independent judiciary".

Other reports by Click Lancashire

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