New Delhi: The Delhi high court in an interim order has restrained Chinese mobile maker Xiaomi as well as online e-commerce site Flipkart from selling handsets in India that run on the technology patented by Ericsson.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.The sudden ban may weigh on Xiaomi’s performance in its most important overseas market and its ambitious globalization plans, a report in the state-run China Daily quoting industry insiders 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. The total fees of the local commissioners, amounting to Rs3.5 lakh shall be borne by Ericsson apart from travel and stay expenses, it said. The local commissioners have to submit their report within four weeks, it also said.
Here is Xiaomi Vice President Hugo Barra’s letter to Indian buyers
“Dear Mi fans,
We have been committed to continue our sales of Redmi Note and Redmi 1S devices in India. In the last 2 days alone, we received about 150,000 registrations for Redmi Note on Flipkart and the momentum has been terrific.
However, we have been forced to suspend sales in India until further notice due to an order passed by the Delhi High Court. As a law abiding company, we are investigating the matter carefully and assessing our legal options.
Our sincere apologies to all Indian Mi fans! Please rest assured that we’re doing all we can to revert the situation. We have greatly enjoyed our journey with you in India over the last 5 months and we firmly intend to continue it!
Stay tuned for more information.
(on behalf of the Mi India team)”
The company has reportedly sold over 800,000 smartphones including its popular Mi 3 and low-budget Red Mi 1S in the Indian market since July.A report by Counterpoint Technology Market Research said in early November that Xiaomi became one of the world’s fastest-growing phone brands in India in the third quarter of the year with a 1.5% share of the market.The overseas expansion has helped Xiaomi jump to No. 3 in global shipments in the third quarter, following only Samsung and Apple, according to a US market research firm IDC’s October report.