After finding that Chinese handset manufacturer Xiaomi was infringing on select Ericsson patents, the Delhi High Court has issued an injunction against the vendor, which prohibits Xiaomi from selling, manufacturing or importing devices in the country. The ban is set to be in effect at least until February 5, 2015.
In an official statement, Ericsson mentioned that Xiaomi infringed on eight patents related to 3G, EDGE and AMR technologies:
Ericsson's commitment to the global support of technology and innovation is undisputed. It is unfair for Xiaomi to benefit from our substantial R&D investment without paying a reasonable licensee fee for our technology.
After more than 3 years of attempts to engage in a licensing conversation in good faith, for products compliant with the GSM, EDGE, and UMTS/WCDMA standards Xiaomi continues to refuse to respond in any way regarding a fair license to Ericsson's intellectual property on fair, reasonable and non-discriminatory (FRAND) terms. Ericsson, as a last resort, had to take legal action.
To continue investing in research and enabling the development of new ideas, new standards and new platforms to the industry, we must obtain a fair return on our R&D investments. We look forward to working with Xiaomi to reach a mutually fair and reasonable conclusion, just as we do with all of our licensees.
The Indian court has ordered Flipkart and Xiaomi to provide details on all devices that use the aforementioned technologies, and the revenue generated from their sales. For its part, Xiaomi seems to be keen on resolving the matter, as evidenced by a statement provided by Indian head Manu Jain:
While we haven't received an official notice from the Delhi High Court, our legal team is currently evaluating the situation based on the information we have. India is a very important market for Xiaomi and we will respond promptly as needed and in full compliance with Indian laws. Moreover, we are open to working with Ericsson to resolve this matter amicably.
This isn't the first time Ericsson sued a handset manufacturer in India. Earlier this year, Micromax was ordered by the Delhi High Court to pay royalties of up to 1 percent of a device's selling price to Ericsson for using the Swedish company's patents in its products.
We'll monitor how the situation pans out with Xiaomi, but the ban is a huge roadblock to the vendor's plans in India, where Xiaomi has been doing so well lately. The vendor has sold over 800,000 devices in the country since its debut earlier this year, and has recently launched its third handset, the Redmi Note, to much fanfare.
Source: Economic Times