Wednesday, 10 December 2014

Delhi HC Bans Xiaomi from Selling In India

In a major setback to Chinese mobile phone manufacturer, Xiaomi, Delhi High Court has restrained it as well as online e-commerce site Flipkart from selling mobile phones in India.

In an interim order, the court also restrained Xiaomi or its agents from making, assembling, importing or offering for sale its devices which are infringing the mobile phone technology patented by Ericsson. Flipkart is Xiaomi’s exclusive seller in India.

Justice G P Mittal directed the customs authorities to prevent import of Xiaomi phones that are infringing the patents of Ericsson and if any consignment is imported, the same be informed to Ericsson and its objections be decided as per the Intellectual Property Rules.

“I am satisfied that plaintiff (Ericsson) has made out a prima facie case for grant of ad interim injunction in its favour. The balance of convenience also lies in favour of plaintiff and in the absence of an injunction order, plaintiff will suffer irreparable loss and injury,” the court said.

The court has also appointed three local commissioners to visit the premises of Xiaomi and Flipkart where the devices are stored in order to inspect and collect documents as well as seal the infringing mobiles.

India is the second largest market for Xiaomi after China and just last month the company had announced that they were contemplating their first research and development centre in India. The ban could have an adverse impact not only on the ongoing sales of the handsets but also the fate of the millions of smartphone owners who have been invested in the various models from the company.



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