(Yicai) April 17 -- Shares of Hytera Communications jumped by the exchange-imposed daily trading limit after a US court allowed the appeal of the Chinese specialized communications equipment and solution provider over a global sales ban on its two-way radio products.

Hytera [SHE: 002583] closed up 10 percent at CNY3.71 (51 US cents) in Shenzhen today. The stock plunged about 28 percent between April 8, the first working day after the company received the sales ban, and yesterday.

The US Court of Appeals for the Seventh Circuit ruled late yesterday local time that it will suspend the sales ban on Hytera’s two-way radio products and related fines given in the first instance trial with immediate effect, the Shenzhen-based firm announced today. Hytera had filed an appeal after the US District Court for the Northern District of Illinois imposed the ban earlier this month.

The company will immediately resume business activities with its global partners and initiate the resumption of sales of related products, Hytera noted, adding that the case is still in the appeal stage, so the firm will take various countermeasures to strive for a formal revocation of the order.

The US District Court for the Northern District of Illinois issued a ruling on April 2, prohibiting 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.

Hytera would 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.

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.

The US court made the punitive ruling on April 2, based on its judgment that the Chinese company ignored its decision on March 25, asking Hytera to withdraw its lawsuit against US telecommunications equipment provider Motorola Solutions and its Malaysian affiliate in a Shenzhen court, while the latter was suing Hytera for intellectual property use payment of its latest H-series products and submitted the anti-suit injunction motion in the US court.

The intellectual property infringement dispute between the two dates back to 2017 when Motorola Solutions and its affiliate filed a lawsuit against Hytera over its two-way radio products in the US court. The case concluded with a ruling in March 2020 ordering Hytera to pay the plaintiff a combined USD765 million compensation in damages and punishment, plus additional royalties for trade secrets and copyright infringements.

Hytera’s appeal against the 2020 ruling is still ongoing, and its new case on the Shenzhen court claimed that its newly developed H-series products should not be subjected to the 2020 ruling.

Hytera withdrew the lawsuit it filed against Motorola in the Shenzhen Intermediate People’s Court according to the US court’s ruling and applied to the US court for the revocation of the order, Hytera announced on April 8.

Editor: Futura Costaglione