Xiaomi has faced another hurdle in its India journey as Delhi High Court banned its sales for now after mobile R&D major Ericsson moved Delhi High Court and got a stay or injunction to the effect.
Ericsson, a Stockholm-based IT services company that holds 33,000 granted patents, and No. 1 holder of GSM/GPRS/EDGE, WCDMA/HSPA, and LTE essential patents, has sued Xiaomi over patent violations in the Delhi High Court and got an ex-parte interim injunction or stay to stop Xiaomi’s Tuesday sales on Flipkart.
Filed in the Delhi High Court by Ericsson against Xiaomi Technology and Others in case no. CS(OS) 3775/2014, Ericsson sought patents’ protection and royalty payments by Xiaomi for the use of its patents in its Redmi phones.
Similar case was filed by Ericsson against Indian budget phone maker Micromax and an interim order giving relief and until Nov. 2015 was issued by the court pending the final disposition of the case.
Until and unless Xiaomi, the Chinese smartphone maker, gets a higher court to dismiss the injunction order immediately, it is unlikely to sell its Redmi Note phones or the planned online sale of Mi4 smartphones from the next week as the court order purportedly directs custom officials to stop imports and restrain Xiaomi from selling, manufacturing, and advertising its devices in India.
Since the next hearing is on February 5, 2015 and there is enough room for Xiaomi and Ericsson to negotiate and decide the future course of action but for a flash sale giant like Xiaomi, the loss for one day may mean a loss of Rs.90 crore via its Tuesday sales on Flipkart.
The case bearing OS9CS) 3775 includes others, which means Flipkart and other sellers like Airtel, which is also set to sell Redmi Note 4G LTE devices via its 100 stores across the country. However, the information is still sketchy and it will be known clearly once the order is made known to all the parties concerened.
Meanwhile, Xiaomi India Head Manu Jain told media that they have not received any official notice from the Delhi High Court but expressed Xiaomi’s willingness to settle the matter amicably. “Our legal team is currently evaluating the situation based on the information we have,” he said.
It may be noted that the Swedish firm Ericsson was given an interim relief in October this year in Micromax case until final disposition of the case in 26 patents violation. “Micromax has asked for agreements/offers by Ericsson with other Indian parties,” observed the court.
Essentially, Micromax has dragged Xiaomi too into the patents’ violation case and it remains to be seen how Xiaomi, which sells these phones in many Asian countries too, will face the case.
As of now, pending the trial in Micromax case, the Delhi High court has asked the Indian firm to pay the following rates of royalty until November 2015. (See List)