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Delhi HC allows Xiaomi to sell in India subject to conditions

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December 16, 2014, 02:17:57 PM
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The Delhi high court on Tuesday allowed Xiaomi Technology India Pvt. Ltd to import and sell communication devices such as mobile phones and tablets in India, subject to conditions. Xiaomi can only sell devices that use chipsets which have been imported from Qualcomm Incorporated, a licensee of Ericsson. Xiaomi was also told to deposit Rs.100 for every device it has sold in India or sells till 5 January. The hearing on the issue of ex-parte injunction has been expedited to 8 January. The ruling came in an appeal filed by the Chinese handset maker against an order restraining Xiaomi from “manufacturing, assembling, importing, selling, offering for sale or advertising including through their and third-party websites, products (telephone instruments, mobile handsets, tablets, hand-held devices, dongles etc)” and “any future or other devices or models that include the AMR (adaptive multi rate), 3G and EDGE technology/devices/apparatus” which infringed any of Swedish telecommunication giant Telefonaktiebolaget L.M. Ericsson’s eight patents. The 8 December order had been passed in a patent infringement suit relating to 2G and 3G technologies filed by Ericsson. The court’s order had also extended to e-commerce website Flipkart.com, that had an exclusive arrangement with Xiaomi for flash sales of its handsets in India. The court had also directed the central board of excise and customs not to allow “the import of mobiles, handsets, devices, tablets” of the allegedly infringing devices and to intimate Ericsson about any consignments imported by Xiaomi. It had directed Xiaomi to file an affidavit disclosing the quantum of AMR, EDGE and 3G devices sold by it in India and the revenue earned from their sale. Ericsson had claimed that despite specific requests to Xiaomi to obtain a licence with respect to Ericsson’s standard essential patents (SEPs), it had “launched its infringing devices in India in July 2014”, without taking any such licence. An SEP is a patent that protects technology which is essential to a standard, without which it would be impossible to manufacture that particular technology while complying with the set industry standard. Since any product which meets the standard will necessarily have to use the patented technology, globally, these patents are licensed by the patent holder to prospective users on fair, reasonable and non-discriminatory terms. This order was passed ex-parte, that is, without giving Xiaomi an opportunity to appear before the court and defend its stand. Following the earlier order, the company’s vice-president of international, Hugo Barra, in a statement made on social networking website Facebook had said that the company had been “forced to suspend sales in India” and was assessing its legal options.

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« Last Edit: December 16, 2014, 02:19:00 PM by тυявσRG »

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