Delhi High Court has passed an interim injunction that stops the Chinese smartphone company, Xiaomi from selling, advertising, manufacturing or importing its devices in India. The injunction was passed after the company has failed to respond to the case of infringing Ericsson’s standard essential patents (SEP), following repeated communication from Ericsson. Xiaomi’s Manu Jain has responded to the matter saying that:
We haven’t received an official notice from the Delhi High Court. However, 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.
India is claimed to be the second largest market for the handset maker after China. This injunction could leave a significant impact on the company sales in the Indian market. Xiaomi currently sells its devices on a weekly flash sales model through Flipkart, who has also been made part of the case. There were rumors that the company is planning to setup its own e-commerce site early next year and start manufacturing smartphones in India.
In a similar case, Delhi HC has ordered Micromax to pay royalties to Ericsson, which amounts to one percent of the selling price of Micromax’s devices. The interim order that was passed last month holds until December 31, 2015, , when the court has set to end the trial.