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Xiaomi / Flipkart stopped registrations for Redmi Note sale

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ban on Mi india, ban on mi phones, ban on xiaomi, patents, patents dispute

Why is Ban on Xiaomi / Mi Phone in India ??

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WHAT HAPPENED?
The Delhi high court issued an ex parte injunction against Chinese smartphone maker, Xiaomi, which prevents it from selling its phones in India. This happened after the Swedish telecom giant, Ericsson, filed a case against Xiaomi for Ericsson has accused Xiaomi of violating eight mobile phone patents relating to the technology standards 3G, EDGE and AMR (a technology that improves voice quality).

The injunction also prevents Xiaomi from advertising, manufacturing and importing devices that infringe upon the patents in question. Flipkart, Xiaomi's exclusive e-commerce partner in India, has been ordered to stop selling the handsets as well.

WHAT'S AN EX PARTE INJUNCTION?
An ex parte injunction is an order passed by a court after hearing only one of the parties involved in a case. This is typically done when the implementation of the order is urgent.

SO...WHY WAS IT SO URGENT IN THIS CASE?
Legal and economic analyst Shamnad Basheer argues on SpicyIP.com that it wasn't. Chances are that these patents are the same ones that Ericsson had mentioned when it filed a lawsuit against Indian phone maker Micromax last year.
Ericsson has also sued other smartphones makers like Gionee, Intex, Samsung and Acer over patents in the past. And yet, these brands continue to sell their devices around the world.

WHY IS THIS IMPORTANT?
Xiaomi is the world's third-largest smartphone maker. It entered the Indian market in July 2014 and is famous for its high-end devices at dirt-cheap prices that have left incumbents like Samsung shaking in their boots. The company says it sold about half a million handsets in India,

Xiaomi is extremely serious about the Indian market and is keen on investing in Indian startups in addition to selling its devices.

WHY DOES ERICSSON HAVE TO FILE A CASE?
Ericsson, which was one of the leading mobile handset makers in the world at some point, holds over 35,000 standard-essential mobile communication patents, including those that cover 2G, 3G and 4G technologies. Every time someone uses these or any one of the 35,000technologies that Ericsson's patent portfolio covers, the company gets a licensing royalty. If you want make a mobile handset, chances are high that you'll be paying Ericsson some money to license patents for some crucial features (like data transfer over 3G). Yep, it’s got some serious rights, But truely deserves those rights.

WHAT ARE STANDARD-ESSENTIAL PATENTS ANYWAY?
This is a complex topic, but here's a simplistic explanation: a patent is deemed "standard-essential" if an independent evaluator determines that a particular patent is essential to establish a technical standard. Think widely-used file formats like GIFs and JPGs. And cellphone standards like 3G, 4G and LTE.

WHAT'S GOING TO HAPPEN NEXT?
Since this injunction was ex parte, Xiaomi now has a chance to file an appeal in the Delhi High Court, which gives it a chance to negotiate with Ericsson. In a statement to Hindustan Times, Manu Jain, Xiaomi's India head said that the company hadn't even received an official notice from the Delhi High Court yet, but the company was "open to working with Ericsson to resolve this matter amicably."

ban on Mi india, ban on mi phones, ban on xiaomi, ericsson, micromax, patents, patents dispute, Xiaomi

Ericsson’s Patent Row Turns from Micromax to Xiaomi !! Delhi High Court Restrains Xiaomi From Selling Handsets In India

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Xiaomi has faced another hurdle in its India journey as Delhi High Court banned its sales for now after mobile R&D major Ericsson moved Delhi High Court and got a stay or injunction to the effect over patents row. The next hearing is on February 5, 2015.

Ericsson, a Stockholm-based IT services company that holds 33,000 granted patents, and No. 1 holder of GSM/GPRS/EDGE, WCDMA/HSPA, and LTE essential patents, has sued Xiaomi over patent violations in the Delhi High Court and got an ex-parte interim injunction or stay to stop Xiaomi’s Tuesday sales on Flipkart.

It may be noted that the Swedish firm Ericsson was given an interim relief in October this year in Micromax case until final disposition of the case in 26 patents violation. “Micromax has asked for agreements/offers by Ericsson with other Indian parties,” observed the court.

By referring to “other Indian parties”, Micromax was able to drag Xiaomi too into the patents’ violation case and it remains to be seen how Xiaomi, which sells these phones in many Asian countries too, will face the case. As of now, pending trial in Micromax case, the Delhi High court has asked it to pay royalty until November 2015.

Similarly, the case in Delhi High Court by Ericsson against Xiaomi Technology and Others in case no. CS(OS) 3775/2014, seeks patents’ protection and royalty payments by Xiaomi for the use of its patents in its Redmi phones.

Until and unless Xiaomi, the Chinese smartphone maker, gets a higher court to dismiss the injunction order immediately, it is unlikely to sell its Redmi Note phones or the planned online sale of Mi4 smartphones from the next week as the court order purportedly directs custom officials to stop imports and restrain Xiaomi from selling, manufacturing, and advertising its devices in India.

Since the next hearing is on February 5, 2015, there is enough room for Xiaomi and Ericsson to negotiate and decide the future course of action but for a flash sale giant like Xiaomi, the loss for one day may mean a loss of Rs.50 to 90 crore via its Tuesday sales on Flipkart.

The case bearing OS9CS) 3775 includes others, which means Flipkart and other sellers like Airtel, which is also set to sell Redmi Note 4G LTE devices via its 100 stores across the country. However, the information is still sketchy and it will be known clearly once the order is made known to all the parties concerened.

Meanwhile, Xiaomi India Head Manu Jain told media that they have not received any official notice from the Delhi High Court but expressed Xiaomi’s willingness to settle the matter amicably. “Our legal team is currently evaluating the situation based on the information we have,” he said.

In a statement provided to TechCrunch, Ericsson described Xiaomi’s use of its Standard, Essential Patents (SEPs) as “unfair.” It said its action is “a last resort” after Xiaomi ignored more than three years of communication requests:

Ericsson’s commitment to the global support of technology and innovation is undisputed. It is unfair for Xiaomi to benefit from our substantial R&D investment without paying a reasonable licensee fee for our technology.
After more than 3 years of attempts to engage in a licensing conversation in good faith, for products compliant with the GSM, EDGE, and UMTS/WCDMA standards Xiaomi continues to refuse to respond in any way regarding a fair license to Ericsson’s intellectual property on fair, reasonable and non-discriminatory (FRAND) terms. Ericsson, as a last resort, had to take legal action.
To continue investing in research and enabling the development of new ideas, new standards and new platforms to the industry, we must obtain a fair return on our R&D investments. We look forward to working with Xiaomi to reach a mutually fair and reasonable conclusion, just as we do with all of our licensees.

Xiaomi — which began selling devices in India in July — claimed it had not received correspondence from the high court, but it did state its willingness to discuss the issue with Ericsson:

We haven’t received an official note 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 India laws. Moreover, we are open to working with Ericsson to resolve this matter amicably.

Ericsson is said to be negotiating compensation for patents with a number of Indian smartphone makers, and it could be that its dispute with Xiaomi goes the same way

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Xiaomi / Flipkart stopped registrations for Redmi Note sale

Why is Ban on Xiaomi / Mi Phone in India ??

Ericsson’s Patent Row Turns from Micromax to Xiaomi !! Delhi High Court Restrains Xiaomi From Selling Handsets In India

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