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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