A technology site noted last month that "The biggest factors that keep Chinese smartphone makers out of the West – and even developed countries in Asia like South Korea and Japan – are carrier subsidies, patents, and cultural stigma." Today we learned just how true that statement was. With Xiaomi experiencing dramatic success within China, they set their eyes on their next market target: India. Today that plan was dealt a blow. The Indian High Court has banned Xiaomi from selling, importing and advertising smartphones in their country.
Last month Apple's general counsel and senior vice president of legal and government affairs, Bruce Sewell was asked about Xiaomi becoming the world's market leader in smartphones. Sewell stated that it was easy to say and more difficult to do. Obviously Sewell and others know that Xiaomi is going to run into patent problems as they go beyond the Chinese border. Today, that has been proven.
A report out of New Delhi today states that the Delhi high court has put paid to Xiaomi's surging sales juggernaut in India; at least for now. Hearing a case filed by Ericsson India against Xiaomi, the court on Monday passed an ex parte order forbidding the popular Chinese manufacturer from importing and selling its smartphones in India.
It's being reported that Xiaomi has been found to infringe on Ericsson's patents, and more specifically, Ericsson's Standard, Essential Patents which are subject to FRAND (Fair, Reasonable and Non-Discriminatory) terms.
The report further noted that the judge directed the customs officials to stop the imports under the IPR Rules, 2007. Moreover, local commissioners too have been appointed to visit Xiaomi India offices to ensure the implementation of the order. The adverse order in the case seems to have come about after Xiaomi allegedly ignored Ericsson's repeated communications.
Related Report 4 days later: