HC allows Xiaomi to sell Qualcomm-based handsets till Jan 8

New Delhi: The Delhi High Court has permitted Chinese mobile phone maker Xiaomi to sell and import Qualcomm chipset based handsets till January 8, as a temporary measure.

In an interim order, the High Court had on December 8 restrained Xiaomi as well as online e-commerce site Flipkart from selling in India handsets of the Chinese mobile maker that run on the technology patented by Swedish technology company Telefonaktiebolaget LM Ericsson. A bench headed by Justice Pradeep Nandrajog passed the "pro tem order" as Xiaomi had contended that Ericsson suppressed the fact that the Chinese mobile maker has also used chipsets of Qualcomm which has a licence to use patents of the Swedish company.

Xiaomi sells its handsets exclusively through e-commerce site Flipkart on every Tuesday, the court was told during the proceedings. The bench was also told by senior advocate Kapil Sibal and advocate Ajit Warrier, appearing for Xiaomi, that on each Tuesday around one lakh units are expected to be sold on the site. Therefore, as part of the "pro tem" or temporary measures, the bench asked Xiaomi to deposit Rs 100 per handset sold, towards royalty, in favour of the Registrar General of the Delhi High Court and the amount so deposited be kept in a fixed deposit.

With these temporary directions, the court disposed of the appeal filed by Xiaomi challenging the High Court's single-judge bench's December 8 order. While disposing of the appeal the court has also directed Xiaomi to furnish an affidavit, before the next date of hearing before the single judge, disclosing the number of units sold by it till then and particulars of the invoices of the Qualcomm chipsets purchased by it.

Xiaomi in its appeal has alleged that Ericsson while obtaining the ex-parte injunction order of December 8 did not inform the court that the Chinese mobile maker also made, imported and sold handsets having Qualcomm chipsets for which Qualcomm has obtained a licence from the Swedish company.