Xiaomi faces legal trouble in India

Cameramen focus on Xiaomi's new tablet at the device's unveiling on May 15, 2014 in Beijing. Kuang Linhua / China Daily

As Xiaomi, one of the best-selling smartphone makers in China, gears up for the launch of its flagship handset Mi4 in India in 2015, the company has been reportedly stopped from importing and selling phones in the country.

According to media reports, Delhi High Court issued the order over alleged infringement of Swedish telecommunications giant Ericsson's patents.

"The patents in question are Standard, Essential Patents (SEPs) which are subject to FRAND (Fair, Reasonable and Non-Discriminatory) terms," said spicyip.com, an India local blog on intellectual property.

According to the site, the ex parte order injuncts Xiaomi from selling, advertising, manufacturing or importing devices that infringe the SEPs in question. The judge also directed the Customs officials to stop the imports under the IPR Rules, 2007. Moreover, local commissioners have been appointed to visit Xiaomi officers to ensure the implementation of these orders.

In an emailed statement to NDTV Gadgets, Xiaomi India Head Manu Jain said: "While we haven't received an official notice from the Delhi High Court, 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 Indian laws. Moreover, we are open to working with Ericsson to resolve this matter amicably."

So far, it isn't clear if this case will affect the sales of Xiaomi's handsets in India.

The company could not be reached for comment at the time of publication.

According to an earlier report by China Daily, Chinese smartphone companies in recent years have been sued in Indian courts for IP disputes and their products seized by local Customs authorities as patents are more frequently being used as a weapon to attack competitors as market competition intensifies.