Temporary injunction stops sales of Xiaomi phones in India

SpicyIP:

Yesterday, the Delhi High Court granted an ex parte injunction order against Chinese operator Xiaomi for infringement of Ericsson’s patents. The patents in question are Standard, Essential Patents (SEPs) which are subject to FRAND (Fair, Reasonable and Non-Discriminatory) terms.

There is some question as to the validity of this ruling. A more traditional approach would be to seek damages after the fact. But Ericsson has been pursuing this disagreement with Xiaomi for years.

One factor that the Court found persuasive was that Xiaomi had not responded to Ericsson’s repeated communications (6 in number from July 2014). However, it must be questioned whether Xiaomi’s purported laxity in this matter is a sufficient reason to grant an injunction against them. More so, when an alternative remedy in the form of damages is available which is one of the cardinal principles that goes against the granting of injunctions.

What does the injunction cover?

This ex parte order injuncts Xiaomi from selling, advertising, manufacturing or importing devices that infringe the SEPs in question. The judge also directed the Customs officials to stop the imports under the IPR Rules, 2007. Moreover, local commissioners have been appointed to visit Xiaomi officers to ensure the implementation of these orders.

India is a huge market, second in importance to Xiaomi only to China. Ericsson certainly has Xiaomi’s attention now.