Xiaomi banned from selling and importing devices in India
Alexandra BurlacuChinese device maker Xiaomi faces a ban in India, as a New Delhi court forbid the company to sell or import products into the country from now on.
Dubbed the "Apple of China," Xiaomi has become quite successful in recent years and saw its sales boom in developing nations such as India. The company has seen great success in the country in the past few months, but an Indian court has now ruled that Xiaomi can no longer import or sell its products in India.
According to a report from Spicyip, the court order bans Xiaomi from selling, manufacturing, advertising, and importing devices into India. The decision comes after Ericsson India filed a case against Xiaomi, claiming that the Chinese company has infringed on some of its standard essential patents.
"The Delhi High Court granted an ex parte injunction order against Chinese operator Xiaomi for infringement of Ericsson's patents. The patents in question are Standard, Essential Patents (SEPs) which are subject to FRAND (Fair, Reasonable and Non-Discriminatory) terms. However, they may also be the same patents which are the subject matters of litigation Ericsson has mounted against Micromax, Gionee and Intex," Spicyip reports.
Micromax, for instance, was forced to pay royalties to Ericsson of up to 1 percent of the selling price of devices in order to use Ericsson's patents.
The court has reportedly instructed customs officials already to stop importing devices from Xiaomi under IPR Rules, 2007. Moreover, court-appointed local commissioners have also received instructions to visit the offices of Xiaomi India and make sure the order is respected. For its part, Ericsson India said that it has tried on several occasions to settle the patent issue with Xiaomi, to no avail.
"One factor that the Court found persuasive was that Xiaomi had not responded to Ericsson's repeated communications (6 in number from July 2014)," the report further notes.
For Xiaomi, India is the second largest market in the world and this sales injunction will surely affect its sales quite considerably. The company will likely seek to settle the case as soon as possible in order to resume its activity in the country, which could mean paying royalties to Ericsson just like Micromax agreed.
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