After Xiaomi, it is now the turn of the OnePlus One to face the ire of the Indian authorities, as local vendor Micromax was able to secure an injunction from the Delhi High Court that bans all sales and advertising of the device in India. The issue is due to the Cyanogen branding seen on the back of the OnePlus One, which Micromax mentioned was a violation of its exclusive partnership with the custom ROM vendor in India.
Earlier this year, Micromax revealed that it has entered into a partnership with Cyanogen in launching a series of handsets that run Cyanogen's custom ROM CyanogenMod out of the box. The series, dubbed Yu, is set to be unveiled December 18 at an event in New Delhi.
The exclusivity of the partnership was not revealed until earlier this month, which is when the OnePlus One officially launched in India. At the time, Cyanogen stated that it would not be able to provide software updates to users purchasing the OnePlus One in India (although users who bought the device from outside of India would still get OTA updates). It now looks like even the presence of the Cyanogen branding is an issue of concern. Here's the statement Micromax provided to the Indian court:
Micromax incurred major expenses for creation of a brand exclusivity for providing to Indian customers mobile phones with Cyanogen operating systems… it would suffer irreparable harm and loss if the defendants (OnePlus) are permitted to continue with their illegal acts in violation of the agreement between Micromax and Cyanogen.
OnePlus entered into a non-exclusive agreement with Cyanogen in February (that covers the entire world excluding China) to use the custom ROM vendor's branding and software on the OnePlus One. Cyanogen is now alleging that its exclusive agreement with Micromax in India supersedes all prior agreements made between Cyanogen and OnePlus. For its part, OnePlus can sue Cyanogen for a breach of contract, but that motion will be heard in California, where the deal was signed. The Delhi High Court has said as much in its ruling.
The silver lining for OnePlus in India is that the court is allowing the vendor to clear its inventory of devices that have already been imported into the country. For it to continue further sales, it has to get rid of the Cyanogen branding and the CyanogenMod ROM.