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Iridium Settles Lawsuit with Motorola

Satellite Technology

Satellite Technology Feature Article

October 04, 2010

Iridium Settles Lawsuit with Motorola

By Raju Shanbhag, TMCnet Contributor

Iridium announced that it settled a $24.7 million lawsuit by Motorola. Both the companies have signed a confidential settlement agreement in this regard, which resolves all disputed matters in the lawsuit filed by Motorola (News - Alert) in February 2010 in the Circuit Court of Cook County, Ill., against two Iridium subsidiaries.

Iridium Holdings, a satellite telecommunications company, was acquired by Iridium (News - Alert) Communications, which necessitated repayment of the nine-year-old debt under a change of control provision in the parties’ agreements, claimed Motorola in a press release.

Terms of the accord resolving the case in Illinois state court in Chicago have not been disclosed by either company. In its complaint, Motorola claimed that Iridium owned the company some money under the terms of a loan made to Iridium Satellite (News - Alert) LLC in 2000. The loan was guaranteed by Iridium Holdings LLC, according to Motorola. In August 2010, Motorola announced that it would invest $3.5 billion into a spinoff company, which would include its mobile phone and television set-top box units.

On September 2007, a US judge dismissed some claims brought by unsecured creditors of Iridium against Motorola. The claim alleged that the market had been misled about valuation of the failed satellite phone venture. The judge declined to accept this claim. In 1997, Iridium stormed the market when it started providing satellite-based mobile phone services. Users could communicate anywhere in the world with satellite based connections. But the company couldn’t find too many customers who were willing to pay as much as seven dollars per minute for having the privilege of using a satellite based phone.

Recently, Iridium announced in partnership with NRG Telecom that Iridium-based Quake Global 9612 modem has been selected by Enalta to be used in its asset tracking devices. Sao Paulo, Brazil-based Enalta is a technological solutions supplier company focused on the agricultural sector, aiming to maximize productivity, while reducing environmental footprint and promote greater efficiencies. By integrating electronic embarked sensors and GPS with software specialists, Enalta strives to supply a complete solution to the market

Raju Shanbhag is a contributing editor for TMCnet. To read more of Raju’s articles, please visit his columnist page.

Edited by Jaclyn Allard

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