Xiaomi Hit By Simultaneous Patent Lawsuits In Major Markets Including India & France

The Hong Kong-listed tech firm, Xiaomi Corporation, is facing legal claims worth hundreds of millions of dollars after being accused of using 4G technology without permission from its patent owner.

LTE-A is an advanced 4G mobile communication standard that builds upon the original LTE technology, offering significantly faster speeds, greater capacity, and improved overall performance compared to 3G LTE networks.

The technology is used in mobile phones, smartwatches and tablets. The company is accused of illegally using the Standard Essential Patents (SEPs) in nearly all 4G devices produced since the last quarter of 2018.

Xiaomi is one of the world’s biggest tech firms with its latest financial results showing worldwide revenue of more than $10bn in Q3 2023. It produces dozens of 4G-enabled devices and is facing high-profile lawsuits in two major markets. 

The High Court of Delhi will hear the case in India which seeks to establish Sun Patent Trust’s Indian patents are infringed; and that Xiaomi acted as an unwilling licensee, while Sun Patent Trust has complied with its FRAND obligations as a SEP holder.

Meanwhile, the Paris Judicial Court will consider the French case which is urging Xiaomi to be ordered to pay royalties on the patents in question.

Xiaomi was first approached by Sun Patent Trust, in 2019. Since then, the Chinese firm which is well-known for a consumer pricing strategy which undercuts tech competitors, is accused of “refusing all attempts” to finalise the terms of a license using “fair, reasonable, and non-discriminatory” terms (FRAND).

Sun Patent Trust is not viewed as an aggressive license holder, only engaging in litigation once since its establishment in 2015.

On this, Joseph Casino, Managing Trustee, Sun Patent Trust comments, “It is surprising that a company of Xiaomi’s standing is simply refusing to come to amicable terms at the negotiation table.

Rather than engage in meaningful negotiations, the company has been repeatedly trying to delay consummating a license. Patent law exists to protect – and further – huge investment in R&D but Xiaomi is frustrating this goal by failing to come to terms on a negotiated license.

It is a matter of regret that we are having to go to this length to compel Xiaomi to comply with international norms.”