Legal Action Against Unauthorised Importers

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Legal Action Against Unauthorized Importers Case Summary China phone manufacturer Xiaomi can’t sell its MediaTek made phones in India since an ongoing patents case from Ericsson in the Delhi High Court. But other unauthorized dealers still import the Xiaomi Redmi Note 3G which runs on a MediaTek processor without Xiaomi’s permission. Ericsson’s lawyers told the Delhi High Court that Xiaomi was selling non-Qualcomm handsets via the website www.xiaomishop.com. Xiaomi had clarified that they only has the only website which is www.mi.com. Legal Issue in the Case From the case, the issue which appeared is infringement of patents which cause by those unauthorized dealer. Head of India operation of Xiaomi, Manu Jain said that authorized sellers in India are only Flipkart and Airtel. All other retail shops or portals such as www.xiaomishop.com which are selling Xiaomi’s products are doing it without their permission. Some of these portals or retail shops are using ‘Xiaomi’ name that infringing on Xiaomi’s trademarks. This is an infringement of trademarks in the issue. Recently Xiaomi is requesting those retail shops and portals to stop selling their devices and close down the unauthorized website and retail shops, or else Xiaomi will be forced to take legal action such as sued them to protect Xiaomi’s interest. Originally, Xiaomi smartphone werecompletely banned in India due to the infringement of patents. However, Xiaomi had successfully convinced that Delhi court that itsQualcomm-powered devices such as Redmi 1S in India. At the same time, Ericsson maintains and insists that Xiaomi must pay a license-fee regardless of the chipset. AlthoughXiaomishop.comis no longer functional, Xiaomi’s headquarter plans to take with legal action against those other four or five websites also breaching the law which is using the name of ‘Xiaomi’ without their permission. Ericsson denounces and sued Xiaomi that they continued selling their (MediaTek-powered) handsets even after January 8, which is clear law violation in this case. After that, the China-based OEM also said that they stopped selling all their MediaTek-powered devices in India after January 8 through Flipkart which is the only authorized dealer of Xiaomi in Asian countries. There are some Xiaomi-branded devices which are currently available in India such as Mi4 and Redmi Note 4G with the Snapdragon-powered models, while the Redmi 1S is prohibited since it is powered by MediaTek’s chip. In a bid to diminish IP accusations and further comply with Indian’s laws, Xiaomi is considering to setup an assembly line in India that produce their product in Indian and sell them. Foxconn from China and Inventec from Taiwan are listed as potential partners, but negotiate and talks are still ongoing. Since Xiaomi wants to expand their business into new markets, it is possible to breaches and meets further legal obstacles of some countries and patent disputes of some competitors.

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