Ex parte injunction against Xiaomi, Delhi HC directs Customs to stop import under IPR Rules [Read the order]

The Delhi High Court yesterday injuncted the Chinese phone manufacturer from selling, advertising, manufacturing or importing devices that infringe the Standard Essential Patents in question. The Court passed the e-parte order while hearing a suit filed by Ericsson.

As per SpicyIP, "The patents in question are Standard, Essential Patents (SEPs) which are subject to FRAND (Fair, Reasonable and Non-Discriminatory) terms. However, they may also be the same patents which are the subject matters of litigation Ericsson has mounted against Micromax, Gionee and Intex."

Reportedly, the ex-parte injunction was granted considering the fact that the Chinese manufacturer had not replied to Ericsson's letters/email that were 6 in number, since July 2014. However, experts have questioned the approach of the Court in this regard as it seems that it deviated from the principles governing grant of injunction, as alternative remedy, in form of damages was available in the present instance.

Moreover, it has also been reported that the High Court has also appointed a Local Commissioner to visit Xiaomi offices to ensure the implementation of its orders. It has also directed the Customs Department to stop import of such products as per the IPR Rules, 2007.

Meanwhile, NDTV reported  Xiaomi India Head, Manu Jain  as  saying, "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."

The High Court in its order had noted, "The Plaintiff has made out a prima facie case for grant of ad interim injunction in its favour. The balance of convenience also lies in favour of the plaintiff and in absence of an injunction order, the Plaintiff will suffer irreparable loss and injury."

Read the order here