For Chinese smartphone maker Xiaomi, the Indian market is its second largest one after China. However, its surging sales in India have received a sudden brake as it is facing certain patent issues in the country.
India’s Delhi High Court has passed an injunction order against Xiaomi banning it from importing, manufacturing, marketing and selling devices that infringe the Standard, Essential Patents (SEPs), in India. This order was issued after telecom equipment manufacturer Ericsson filed a patent infringement case against Xiaomi.
A report by SpicyIP says that the reason for granting of an injuction order is that Xiaomi failed to respond to Ericsson’s repeated requests for communications since July 2014. The patents in question may be the same ones for which Ericsson had filed cases against Gionee, Micromax and Intex. According to the report, the injunction order does not conform to international practice or to the local laws.
Xiaomi India’s head Manu Jain told CNet that,”India is a very important market for Xiaomi and we will respond promptly as needed and in full compliance with Indian laws. Moreover, we are open to working with Ericsson to resolve this matter amicably.“
For Xiaomi, the Indian market is a fast expanding market and the company cannot afford such kind of bans. It is important to note that Xiaomi has put its expansion to other countries on hold in order to focus more on the lucrative Indian Market.
Xiaomi launched its operations in India recently in July 2014 and has already sold over half a million devices till the month of October. It sells online exclusively through Flipkart and its weekly sales are 65,000 to 100,000 units, which surged to 175,000 during the festival season of Diwali in India.