Xiaomi, the Chinese smartphone maker, is facing legal troubles due to patent lawsuits filed against it in major markets like India and France.
These lawsuits allege that Xiaomi has been using LTE-A technology without permission. LTE-A, an advanced 4G standard, offers faster speeds and better performance compared to regular LTE.
The accusations claim that Xiaomi has been using this patented technology in its 4G devices since late 2018 without proper licensing. These lawsuits, collectively valued at over $300 million (approximately 24,978 Crore INR), are a significant embarrassment for Xiaomi, especially in India.
In India, the High Court of Delhi will assess whether Xiaomi has indeed infringed on the patents and whether Sun Patent Trust, the patent owner, has fulfilled its obligations. Meanwhile, the Paris Judicial Court will address the issue of royalty payments for the patents in question.
Xiaomi’s refusal to agree to fair licensing terms with Sun Patent Trust has led to these legal battles. Despite attempts at negotiation since 2019, Xiaomi has not reached an agreement with the patent holder.
Joseph Casino, Managing Trustee of Sun Patent Trust, expressed surprise at Xiaomi’s reluctance to negotiate. Sun Patent Trust, though not known for aggressive litigation, has taken legal action due to Xiaomi’s stance.
With global revenue surpassing $10 billion in Q3 2023, Xiaomi faces substantial challenges in two major markets due to these lawsuits. These legal battles jeopardize Xiaomi’s reputation and could result in significant financial consequences.
Regarding the lawsuit, Joseph Casino, Managing Trustee of Sun Patent Trust, said:
It is surprising that a company of Xiaomi’s standing is simply refusing to come to amicable terms at the negotiation table. Instead of engaging in meaningful negotiations, the company has been repeatedly trying to delay consummating a license. Patent law exists to protect and further substantial investments in R&D, yet Xiaomi is frustrating this goal by failing to come to terms on a negotiated license. It is regrettable that we must resort to such measures to compel Xiaomi to comply with international norms.