China’s Xiaomi ordered to suspend India operations
Delhi court blocks imports, sales, until Ericsson licensing dispute resolved
Chinese smartphone vendor Xiaomi Technology has been ordered to stop selling handsets in India after just five months of operations, while a legal dispute with Sweden's Ericsson is resolved, Reuters reported, citing a report in today's edition of the Economic Times newspaper.
Xiaomi has risen to become the number-three global smartphone maker in shipments in just three years, by producing devices that appeal to consumers on a budget. India is the world's third largest smartphone market and is a key battleground for budget suppliers.
The Delhi High Court told Xiaomi and online retailer Flipkart, the company's sole reseller in India, to suspend imports and sales until 5 February, when Ericsson's patent infringements case will be heard.
Ericsson said in a statement that the infringement had to do with the payment of licence fees.
"Our legal team is currently evaluating the situation based on the information we have," said Manu Jain, Xiaomi's head of India operations. He also said that his company was willing to work with Ericsson to resolve the issue "amicably".