Flash Sales Over: Xiaomi suspends sales in India

Ericsson’s arrow of patent lawsuit has hit Xiaomi hard in India. After Delhi High Court’s decision of banning Xiaomi smartphone sales and imports in India company’s bound to comply with the law. Xiaomi’s Vice President Hugo Barra recently announced in a Facebook statement that company’s forced to suspend its smartphone sales in India until further notice due to an order passed by Delhi High Court. He added that India is an important market for company and they’re assessing their legal options to resolve the issue. After Barra’s statement on FB company’s Indian website has also been shut down and a link to Barra’s Facebook post has been placed on its homepage. However, Barra didn’t go into much details in his Facebook statement. Manu Jain, Head of Xiaomi India, also stated in a press statement that although they’ve not yet received any official written order from HC, still they’re keeping the tab on development and exploring their legal options.

Within five months of launch Xiaomi became a top player in Indian mobile market. According to Barra, more than 150,000 people registered for Redmi Note in two days. But now company’s forced to suspend its sales because of an order passed by High Court. It’s still unclear whether people who had ordered their smartphones will receive their devices or not.

Xiaomi Suspends sales in India

Xiaomi Suspends sales in India

The saga of this ban began when Ericsson accused company of infringing its patents and filed a lawsuit for the same in Delhi High Court. In a response to Ericsson’s filing, court banned the sale of Xiaomi smartphones in India and ordered custom authorities to halt the import of Xiaomi smartphones in India.

Now it seems that Xiaomi won’t be able to sell its smartphones in Indian market until it reaches some sort of settlement with Ericsson. The settlement will obviously come in form of royalties, as Ericsson sorted out its matters with other smartphone companies. However, some other options may also be considered for settlement depending on the future plans of both companies.

** A Letter to Indian Mi Fans **Dear Mi fans,We have been committed to continue our sales of Redmi Note and Redmi 1S…

Posted by Hugo Barra on Thursday, December 11, 2014

According to Ericsson, they had no other choice instead of filing a patent infringement lawsuit because Xiaomi was refusing to engage in licensing conversations for more than 3 years. As a last resort, company decided to file the lawsuit. However, after the ban on sales in India Xiaomi seems to be on backfoot – it has stated in a press statement that it’s open to settle the issue with Ericsson in amicable ways. A deadline of February 2015 has been provided by Delhi High Court for settlement to both companies. Until then, sales, advertising and imports of Xiaomi will remain banned in India.

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