14 DAY TRIAL // Xiaomi is one of China’s most notable handset makers and its products are selling like hot pancakes. But not everything is roses and rainbows for the company.
For example, in India Xiaomi has been hit hard. This week, a Delhi High Court has given an “ex-parte” injunction that bans the smartphone maker from importing or selling phones in the country, says a report coming from SpicyIP. Ouch!
Xiaomi vs Ericsson, round I
The reason why this is all happening? The Chinese company has been found guilty of infringing on Ericsson’s Standard Essential Patents (SEPs).
The story goes like this. Apparently, Ericsson is very keen on protecting its intellectual property, as the company has unleashed similar patent cases against Micromax, Gionee and Intex. But Xiaomi failed to respond to any of the communications sent out by Ericsson.
So the Indian court has to take this drastic decision. How does Xiaomi feel about the verdict? According to Xiaomi’s India Head, Manu Jain, the company has yet to receive an official notice from the Delhi High Court.
Nevertheless, the company’s legal team is evaluating the situation based on the info they have. Since India is one of the most important markets for Xiaomi, the handset maker says it is open to work with Ericsson in order to come up with a solution to the problem.
However, this compliance to the situation might come too late for Xiaomi. According to the report, the Delhi high court has instructed the Customs officials to stop the imports under the IPR Rules, 2007. On top of that, authorities are directed to visit Xiaomi officers to make sure everything goes according to the court’s instructions.
Is the ban imposed on Xiaomi products justifiable?
But the TRIPS Rules, 2007 (Article 51), solely mention border control mechanisms for copyright and trademark related matter, not patents. So, the question whether the Delhi court has gone too far in the Xiaomi debacle arises.
When Xiaomi made its debut in the Indian market, it made quite a slash. Indian customers were drawn to the company’s super affordable high-end devices like bees to honey, and after entering the market for just two months, Xiaomi managed to grab 1.5% of the Indian smartphone market.
India is one of the most absorbent smartphone markets in the world and quickly became Xiaomi’s second-largest after its home court China.
But the rollercoaster will come to an abrupt end if the Delhi court ban goes on to detain Xiaomi from importing and selling its handset products within the country.
