The Seventh Circuit’s recent decision in Motorola v. Hytera sends a clear message: U.S. trade secret law has global reach. By upholding a $500-million judgment for overseas misappropriation, the court confirmed that companies face serious consequences under the Defend Trade Secrets Act—even for conduct and damages occurring outside the United States. Motorola Solutions, Inc. v. Hytera Communications Corporation Ltd., 108 F.4th 458 (7th Cir. 2024), reh’g and reh’g in banc dismissed, No. 22-2370, 2024 WL 4416886 (7th Cir. Oct. 4, 2024), and cert. denied, 145 S. Ct. 1182 (2025).

One of the key issues before the Seventh Circuit was whether the Defend Trade Secrets Act (“DTSA”) permits recovery of damages for misappropriation occurring abroad—specifically, whether sales outside the United States may serve as the basis for a damage award. The decision leaves intact the Seventh Circuit’s earlier opinion affirming one of the largest trade-secret and copyright awards ever entered by an American jury, which, after trebling and supplemental damages, exceeds $500 million, and clears the way for Motorola to pursue a permanent worldwide injunction against Hytera’s digital mobile radio (“DMR”) products found to incorporate Motorola’s proprietary technology.

Case Background and Extraterritoriality Issue

Motorola, a long-time leader in two-way radio technology, filed suit in 2017 after discovering that Hytera had hired away several Motorola engineers from its Malaysia office. Prior to their departure, these engineers downloaded thousands of confidential Motorola technical documents, which Hytera then used to accelerate development of its competing DMR portfolio. The case presented a significant question: whether the DTSA allows for damages based on sales outside the United States when the misappropriation involves acts both abroad and in the U.S.

The Seventh Circuit applied the two-step framework from RJR Nabisco, Inc. v. European Community, 579 U.S. 325 (2016), to determine whether the DTSA applies extraterritorially. Under this framework, courts first ask whether the statute gives a clear indication of extraterritorial application; if not, they consider whether the conduct relevant to the statute’s focus occurred in the United States.

In this case, the court noted that the DTSA was enacted in 2016 by amending provisions of the Economic Espionage Act (EEA). Chapter 90 of the EEA made theft of trade secrets a federal crime, and Section 1837 of Chapter 90 provides that "[t]his chapter also applies to conduct occurring outside the United States if... an act in furtherance of the offense was committed in the United States." The court reasoned that because the DTSA created a private right of action for violations of the EEA, and the EEA authorized prosecution for extraterritorial conduct, the DTSA likewise authorizes damages for extraterritorial sales.

Here, the Seventh Circuit held that Hytera’s marketing and sales of goods in the United States that contained the misappropriated trade secrets constituted a sufficient "act in furtherance of the offense" to trigger the DTSA and permit recovery of damages for sales outside the United States. This differs from the Court’s ruling that Motorola could not recover damages for foreign sales under the Copyright Act.

Following a three-month trial in the Northern District of Illinois, a jury found that Hytera had willfully misappropriated Motorola’s trade secrets and infringed Motorola’s copyrights, awarding approximately $345 million in compensatory damages. The district court subsequently trebled the trade-secret component of the verdict under the DTSA, added prejudgment interest, and entered a sweeping injunction prohibiting Hytera from manufacturing, importing, or selling products that relied on the misappropriated technology.

Hytera appealed, challenging both liability and damages and arguing, among other things, that the district court had misapplied the DTSA, that damages for foreign sales were not recoverable, that the damages award was duplicative, and that the injunction was overbroad. In July 2024, the Seventh Circuit categorically rejected those arguments, holding that the DTSA does apply extraterritorially, and extraterritorial sales are recoverable under the DTSA. The Seventh Circuit also held that treble damages of two-to-one, as capped under the DTSA, pass constitutional muster. Hytera then sought panel rehearing and rehearing en banc which was denied.

Key Takeaways

• Aggressive Remedies. The Seventh Circuit’s willingness to uphold treble damages and a far-reaching injunction under the DTSA signals that federal courts remain receptive to robust remedies in cases involving brazen misappropriation, particularly where the defendant is a foreign competitor.
• Heightened Risk in Talent Acquisition. Companies should treat employee onboarding, especially when hiring from a direct competitor, as a moment of acute legal risk. Comprehensive document-control protocols and exit-interview audits remain essential.
  • Global Implications. Non-U.S. defendants facing U.S. trade-secret claims should be prepared for the extraterritorial reach of U.S. remedies and the likelihood that an affirmed domestic judgment will be leveraged in foreign venues.
• Prompt Action. Motorola’s decisive win underscores the strategic value of swift civil action when misappropriation is suspected and confirms the Seventh Circuit’s readiness to sustain aggressive district-court remedies designed to neutralize unfair competitive advantages.