At the crux of the matter, lies the infringement claims of eight registered Standard Essential Patents of Ericsson. The Hon'ble Delhi High Court has passed an injunction forbidding the firm from producing, building, importing or selling smartphones utilizing the Patent in India. India being its largest market outside China, this surely has come off as a blow to the infant company.
Xiaomi and Flipkart, e-commerce partner, have to announce how many devices have been shipped, so as to calculate the compensation due to Ericsson. In an earlier infringement suit against Micromax, Ericsson is to receive 1% of the selling price of the devices, by way of royalty, for use of latter's Standard Essential Patents.
While thee court has directed the Central Board of Excise and Customs to stop the import of devices from Xiaomi, it is to be looked how the firm's legal team works a way out of this suit.
- Bagmisikha Puhan