Bloomberg News

Motorola Mobility Accused in Lemko Trade Secret Theft Suit

November 18, 2011

(Adds damages sought in fourth paragraph.)

Nov. 17 (Bloomberg) -- Motorola Mobility Holdings Inc. was accused in a lawsuit by Lemko Corp. of misappropriating trade secrets on technology for locating emergency callers on cellular networks.

An engineer employed at Lemko who created computer codes that calculate the location of mobile phones left in 2006 to work for Motorola Mobility, which lacked the position- determining technology, according to the complaint. The engineer was hired because she had “access to and knowledge of Lemko’s trade secrets,” including source code for that technology, the company alleged.

The engineer was assigned to create position-hiring technology at Motorola Mobility, which knew or should have known that she would use Lemko’s trade secrets, according to the complaint.

Motorola exported the technology to its facility in China, where it was incorporated into the company’s mobile phones. The company allegedly destroyed computer files showing use of Lemko’s computer code and fired the engineer in 2008.

Lemko seeks compensation for the loss of royalties and other unspecified damages.

Motorola Mobility is being acquired by Google Inc., which isn’t named in the suit. The deal is more likely to close in 2012 than this year as earlier announced, the phone maker said this week.

Christa Smith, a Motorola Mobility spokeswoman, didn’t immediately reply to a voice-mail message seeking comment about the lawsuit.

The case is Lemko Corp. v. Motorola Mobility Holdings Inc., 2011L12432, Illinois Circuit Court, Cook County, Law Division (Chicago)

--Editors: Michael Hytha, Charles Carter

Andrew Harris in Chicago at aharris16@bloomberg.net; Karen Gullo in San Francisco at kgullo@bloomberg.net.

To contact the reporter on this story:

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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