Motorola Mobility sued for allegedly stealing source code

Lemko Corporation, a private software and systems developer, on Wednesday filed a complaint against Motorola Mobility alleging that it stole trade secrets and is financially benefiting from the misappropriation of Lemko’s source code. The company claims that Motorola hired an engineer who developed unique, protected code while employed by Lemko, and proceeded to implement the source code on Motorola’s servers without licensing the technology. The code in question relates to server side network-based positioning technology. Read on for more.

“Lemko is committed to protecting itself against the theft of its software,” Lemko’s Raymond Minkus said in a statement. “Lemko will vigorously defend its intellectual property rights and will exercise its legal rights to prevent Motorola’s illegal sale which would result in the fraudulent conveyance of our source code to Google.”

The complaint goes on to allege that Motorola admitted to Lemko that the code in question was present on its servers, and later attempted to conceal the unauthorized use of this technology by moving related development work to China. “By destroying evidence of its misappropriation, Motorola has also engaged in willful, deliberate and malicious conduct and is, therefore, subject to increased damages under the Illinois Trade Secrets Act, 765 I.L.C.S. Section 165/4(b),” Lemko’s complaint states. “Motorola’s conduct was done voluntarily and intentionally and its misappropriation is not the result of a mistake or accident. Further, Motorola’s acts were malicious, in that they were accompanied by a conscious and wanton disregard of Lemko’s rights.”

Based in Schaumburg, Illinois, Lemko bills itself as “a premier IP software company that provides a complete mobile system on a server at the cell site (RAN) distributing the core intelligence to the edge and fulfilling the ITU’s vision for 4G next generation networks.” This new complaint is the latest move in an ongoing legal battle between Lemko and Motorola Inc. that has lasted more than three years. The company’s full press release follows below.

Lemko Alleges Motorola Mobility
Using Stolen Source Code In Cellular Phones;
Complaint Details “Intentional” Misappropriation,
International Transfer For Commercialization

CHICAGO, IL (November 17, 2011) –  Lemko Corporation, a small US
developer of cellular broadband networking software and systems, filed
suit today in Cook County Circuit Court alleging that Motorola
Mobility Holdings, Inc., is financially benefitting from the use of
misappropriated trade secrets in all cellular phones.

The complaint details the alleged pilfering of Lemko’s network-based,
position-determining entity (“PDE”) source code by Motorola Mobility
and its predecessor Motorola, Inc.  The complaint provides the
specific chronology, including Motorola’s hiring of a Lemko engineer
responsible for creating the unique code and the surreptitious actions
of exporting the secret source code to Motorola’s operations in China.

Lemko’s unique software-based PDE and accompanying source code can be
embedded in every base station and in every cellular phone. Lemko’s
PDE system when combined with A-GPS technology helps determine a
cell phone’s precise geo-location. The ability to calculate and send
location information is central to the success of timely response to
E911 emergency calls and many other appications that use geo-location.

The complaint is the first brought by Lemko against Motorola Mobility,
based in Libertyville, IL., which was created in January 2011 upon the
break up of Motorola, Inc. It has been widely reported that Motorola
Mobility is in the process of being sold to Google for $12.5 billion,
mainly for its cellular patents and intellectual property.

Raymond Minkus, spokesman for Lemko, said, “Lemko is committed to
protecting itself against the theft of its software.  Lemko will
vigorously defend its intellectual property rights and will exercise
its legal rights to prevent Motorola’s illegal sale which would result
in the fraudulent conveyance of our source code to Google.”

The suit alleges that Motorola has admitted that Lemko’s secret source
code was present on the company’s servers.  The complaint further
alleges that Motorola sought to conceal its use of Lemko’s secret
source code by exporting it to its China labs and by having Motorola’s
Chinese engineering team integrate the code into its cellular phones.
The complaint asserts Motorola built the Lemko source code into at
least one Motorola handset and tested it on the Sprint network.

Moreover, Motorola is accused of subsequently deleting and destroying
evidence of the code’s usage.

“By destroying evidence of its misappropriation, Motorola has also
engaged in willful, deliberate and malicious conduct and is,
therefore, subject to increased damages under the Illinois Trade
Secrets Act, 765 I.L.C.S. Section 165/4(b),” the complaint states.
“Motorola’s conduct was done voluntarily and intentionally and its
misappropriation is not the result of a mistake or accident.  Further,
Motorola’s acts were malicious, in that they were accompanied by a
conscious and wanton disregard of Lemko’s rights.”

Lemko Corporation (http://www.lemko.com) is dedicated to creating and
providing comprehensive broadband cellular solutions to rural
communities, areas ravaged by disaster and for other special
situations where small subscriber bases and / or problematic events
require lower cost yet easy to implement solutions.

Lemko’s proprietary IP software provides core 4G network technology
that equips carriers, emergency response teams and other mission
critical users of Lemko’s patented “game changing” technology, with
the ability to quickly, easily and economically deploy next generation
mobile broadband systems.

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