Only millet and Ericsson’s "peaceful settlement" door of infringement may be the end

The negative impact of the “India map door” incident has not yet dispersed, and millet will usher in new troubles. This Thursday (February 5th) Xiaomi's mobile phone infringement Ericsson patent case will be reopened in India, the two sides renewed. Ericsson’s internal channel sources revealed to Tencent Technology that Xiaomi violated the court’s sales ban in the Indian market and continued to sell handsets based on MTK (MediaTek) chips in the market. Ericsson will take certain measures to safeguard its own rights and interests.

According to documents from the Delhi High Court in India, Ericsson filed a lawsuit on December 5 last year to sue Xiaomi for infringement. On December 8, Delhi High Court ruled that Xiaomi infringed 8 standard-essential patents of Ericsson and issued a pre-ban. However, Xiaomi received a brief respite from Delhi High Court. The court allowed Xiaomi to sell smart phones equipped with Qualcomm chips before January 8, 2015, provided that each department had to pay a deposit of 100 rupees.

According to Tencent Technology, Xiaomi’s current models in India are red rice 1S and red rice Note. The former uses the Qualcomm 400 Series MSM8628 chip and the latter uses the MTK 6592 chip. According to the court's previous verdict, Xiaomi could sell the red rice 1S equipped with a Qualcomm chip in India before January 8, which means that it is not allowed to sell Red Rice Note equipped with MTK chips.

In the case of Ericsson's patent dispute, Xiaomi claimed that Red Rice 1S had sold 500,000 units, and Red Rice Note had reached 150,000 bookings. Manu Kumar Jain, India’s regional director of the millenium, also announced on Twitter last year that Xiaomi’s mobile phone has sold 1 million units in India. Judging from this data, there must be Red Rice Note in the 1 million sales volume, that is to say, after the court announced the sales ban, Xiaomi has not fully implemented Xiaomi's mobile phone outside of Qualcomm.

In this regard, the source told Tencent Technology, "Ericsson has mastered the sales of millet violating the ban cell phone in India, and the situation is reflected to the court, hoping that the court made a punishment against Xiaomi violations." It is reported that on February 5 It will be possible to announce the relevant results when the court opens.

Millet is difficult to patent

The development of millet that grows in the weak environment of domestic patent protection is growing in the sky, but the future path under overseas patents is bound to be difficult. For the time being, don't say for the moment. Can millet weather this difficult time?

The controversy over this patent dispute comes from "Standard Essential Patents," which is usually referred to as the core patent. In this regard, Ericsson's advantages are far greater than Xiaomi's.

It is understood that Ericsson has applied for and obtained more than 35,000 patents in various countries in the world. The patent portfolio covers 2G, 3G and 4G technologies. Moreover, Ericsson has reached more than 100 patent licensing agreements, including all major players in the industry. To this end, Ericsson invests 25,000 employees and nearly 15% of net sales in R&D each year, exceeding US$4 billion.

Despite the rapid increase in the number of domestic patent applications filed by Xiaomi last year, the key core patented millet cannot be bypassed unless it redefines the concept of another communication tool that is different from the mobile phone. Acquired by the international standard organization.

Overseas expansion blocked

However, compared with the odds, Xiaomi’s headache is probably its international expansion. In April 2013, Xiaomi started the internationalization process. At that time, the market entered Hong Kong and Taiwan. In February last year, Xiaomi's overseas expansion was extended to Singapore and in the second half of the year it quickly expanded to markets in India, Malaysia, the Philippines and Indonesia.

When Xiaomi Chairman and CEO Lei Jun announced the overseas plan, Xiaomi planned to land in 10 overseas markets in 2014. Later, due to supply chain issues, Xiaomi has only landed in five countries.

India is the key stop for internationalization of millet. Xiaomi entered the market and had spent huge sums of money to build a domain name. He also marked the famous Indian landmark Taj Mahal with the tagline “With Mi in India”. Now it is caught in Ericsson's patent dispute and has to allow it to re-examine overseas expansion plans.

Some analysts believe that Ericsson chose to sue Xiaomi in India because, on the one hand, the market is currently the best performing overseas market for Xiaomi’s mobile phones and the prosecution is profitable. On the other hand, the lawsuit against India has a demonstration effect on other Southeast Asian markets. The progress of negotiations will directly affect Xiaomi’s fate in other new markets.

Wei Lizhou, who is engaged in intellectual property research at the Max Planck Institute for Intellectual Property and Competition Law in Munich, Germany, previously told the media: “The same patent was used in different countries and it was translated into a different language. Ericsson’s 8 items Patents, the rights in other countries and India are the same."

Earlier, Ericsson officials had stressed to Tencent Technology, "Where Xiaomi violated Ericsson patents, we will reserve the right to sue there in the future."

Whether or not Xiaomi has entered Singapore, Malaysia, the Philippines, Indonesia, and other markets will be affected. The final result will be the outcome of the February 5 trial.

Possibility of reconciliation

Ericsson had sued Samsung in the United States. At present, both parties have reached a global patent authorization settlement. The patent cross-license agreement signed by both parties includes patents related to GSM, UMTS and LTE networks and terminal standards. Through this agreement, Ericsson received 4.2 billion Swedish kronor (about 500 million U.S. dollars) of financial revenue, of which 3.3 billion Swedish kronor (about 400 million U.S. dollars) for the net income.

The same is also true of ZTE. Since 2011, Ericsson has filed lawsuits against ZTE in Britain, Italy, and Germany. According to a Reuters report, ZTE reached a global settlement with Ericsson in early 2012 and paid licensing fees to Ericsson. The specific amount has not been announced.

According to Tencent's understanding of the situation, Ericsson sued Xiaomi's patent infringement for the ultimate purpose of wanting Xiaomi to follow the FRAND basis to discuss and sign the necessary patent licenses and pay a certain patent fee.

From the perspective of Xiaomi's own development, the Indian market has a huge room for growth. With the initial overall good sales performance, it is unlikely that patent issues will slow the development of the market. The only way to achieve this is to agree with Ericsson and sign a patent licensing agreement.

Millet also stated in an official statement before that that it will “resolve peacefully” with Ericsson.

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