Legal Action Against Unauthorized Importers

Case Summary

China phone maker Xiaomi can’t sell its MediaTek made phones in India since an on-going patents instance from Ericsson in the Delhi High Court. But other unauthorised traders still import the Xiaomi Redmi Note 3G which runs on a MediaTek processor without Xiaomi’s permission. Ericsson’s attorneies told the Delhi High Court that Xiaomi was selling non-Qualcomm French telephones via the website www.xiaomishop.com. Xiaomi had clarified that they merely has the lone web site which is www.mi.com.

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Legal Issue in the Case

From the instance, the issue which appeared is violation of patents which cause by those unauthorised trader. Head of India operation of Xiaomi, Manu Jain said that authorised Sellerss in India are merely Flipkart and Airtel. All other retail stores or portals such as www.xiaomishop.com which are selling Xiaomi’s merchandises are making it without their permission. Some of these portals or retail stores are utilizing ‘Xiaomi’ name that conflicting on Xiaomi’s hallmarks. This is an violation of hallmarks in the issue. Recently Xiaomi is bespeaking those retail stores and portals to halt selling their devices and near down the unauthorised web site and retail stores, or else Xiaomi will be forced to take legal action such as sued them to protect Xiaomi’s involvement. Originally, Xiaomi smartphone were wholly banned in India due to the violation of patents. However, Xiaomi had successfully convinced that Delhi tribunal that its Qualcomm-powered devices such as Redmi 1S in India. At the same clip, Ericsson maintains and insists that Xiaomi must pay a license-fee regardless of the chipset. AlthoughXiaomishop.comis no longer functional, Xiaomi’s headquarter programs to take with legal action against those other four or five web sites besides transgressing the jurisprudence which is utilizing the name of ‘Xiaomi’ without their permission. Ericsson denounces and sued Xiaomi that they continued selling their ( MediaTek-powered ) French telephones even after January 8, which is clear jurisprudence misdemeanor in this instance. After that, the China-based OEM besides said that they stopped selling all their MediaTek-powered devices in India after January 8 through Flipkart which is the lone authorised trader of Xiaomi in Asiatic states. There are some Xiaomi-branded devices which are presently available in India such as Mi4 and Redmi Note 4G with the Snapdragon-powered theoretical accounts, while the Redmi 1S is prohibited since it is powered by MediaTek’s bit. In a command to decrease IP accusals and farther comply with Indian’s Torahs, Xiaomi is sing to setup an assembly line in India that produce their merchandise in Indian and sell them. Foxconn from China and Inventec from Taiwan are listed as possible spouses, but negotiate and negotiations are still ongoing.

Since Xiaomi wants to spread out their concern into new markets, it is possible to breaches and meets farther legal obstructions of some states and patent differences of some rivals. Recently, Hugo Barra, frailty president of the International Division of Xiaomi by and large acknowledged that IP judicial proceeding is an inevitable portion of making concern at San Francisco. In order to better defend and protect itself from other violation of patents, Xiaomi had already amassed about 2,800 patents of its ain merchandises in 2014.

In a public statement which Ericsson said that they inquires the Dehli tribunal to name a local commissioner or adjunct manager to analyze and ban all Xiaomi smartphones that imported to India and the Dehli tribunal was agreed. Xiaomi announced the impermanent order was merely valid until March 18. When the tribunal will keep another hearing for the contention, which it is involves Flipkart and Airtel which are Xiaomi ‘s authorised trader in India. Xiaomi besides planned to fall back the legal action to protect its ain involvement from xiaomishop.com. In December, Ericsson said that they tried to speak to Xiaomi about royalties for the past three old ages but Xiaomi did non give any respond.

Result

Based on the issue above, several concerns will originate chiefly for Xiaomi, Ericsson and those aunthorized trader and unauthorised trader.

  1. Xiaomi’s Concerns

Xiaomi had ran into a barrier last twelvemonth where its merchandise which consist MediaTek’s processor are prohibition from importing and selling in India due to a patent difference from Ericsson. Xiaomi lost its 1.5 per centum of portions since they can’t sell their MediaTek’s devices in India. At last Xiaomi managed to acquire the permission to restart its concern but merely for those device that run on a Qualcomm’s processors but non MediaTek’s processor. Obviously the ground and root that cause of this patent difference lies on those devices that run on MediaTek’s processor which allegedly infringed Ericsson’s patents on their AMR, 3G, and EDGE engineerings. Xiaomi had try their best and seting tonss of attempts in defend themselves and spent a tonss of money. Finally Xiaomi has successfully managed to acquire the freedom for selected devices and theoretical accounts which run on Qualcomm’s processors that have the licensing understandings with Ericsson. This brand Xiaomi has to re-introduce their Redmi 1S that consist Dual-SIM 3G and run with a Qualcomm Snapdragon 400 processor. Since the 3G Redmi Note is prohibited, Xiaomi will seek to present their latest Redmi Note 4G with individual SIM that run on a Qualcomm alternatively of MediaTek’s processor which been banned in India. The issue happened in India doesn’t affect the concern of Xiaomi, it has continue to spread out their concern all around the universe.

  1. Ericsson’s Concerns

Although Ericsson is non a market leader within smartphone fabrication any longer, but the company is become a strong dominant force in radio engineering. Ericsson holds about 32,000 patents and 450 of them are in India. Ericsson had sued many companies such as Samsung and Xiaomi to protect its ain involvement. Ericsson had successfully protects its involvement against Xiaomi. They sued Xiaomi for violation of patent last twelvemonth and they won the instance. The Delhi tribunal which handles the instance had come out with a solution. The understanding between Ericsson and Xiaomi has clearly stated that Xiaomi has to pay royalties to Ericsson due to the violation of patents.

  1. Unauthorized Dealer’s Concern

Xiaomi had warning those unauthorised retail stores and portals to closed down their concerns. Those unauthorised retail stores and portal are selling the Mediatek’s devices in India and do the violation of patents. Xiaomi has the right to action them if they still carry oning their concern without any recognition from Xiaomi. The portal ‘ xiaomishop’ has closed down because Xiaomi had forced them to make so. There are still 4 to 5 retail stores and portals that still carry oning their concern and merchandising Xiaomi’s merchandises.

  1. Authorized Dealer’s Concerns

The authorised traders of Xiaomi in India are Flipkart and Airtel are besides affected by the violation of patents. They besides were selling the MediaTek’s devices before the Ericsson has sued Xiaomi. Their concerns are bead since the 3G Redmi Note are banned. Recently they are selling back Xiaomi’s devices that run on a Qualcomm’s processor.