Concealment of material fact by Ericsson and vacation of injunction on Xiaomi

The Delhi High Court on April 22, 2016 revoked the interim injunction on Xiaomi in the ongoing patent tussle with Ericsson in India. The Court in its judgement has pronounced that there was a greater onus on Ericsson to disclose the material fact- in this case the Multi Product License Agreement which it had with Qualcomm, especially when it was seeking an injunction ex-parte.

On December 9, 2014, the Delhi High Court (DHC) had passed an interim order ordering an interim injunction against Xiaomi.  The Division Bench of the DHC had then allowed Xiaomi allowed to sell its devices subject to certain conditions – to only sell Qualcomm based devices and not Mediatek-chipset based devices.

However, this development emerged as a result of Xiaomi telling the court that it had already got a license for patents (Ericsson’s 3G patent -; IN229632 and IN240471) through Qualcomm, which had in turn secured license from Ericsson. Xiaomi averred that Ericsson had deliberately suppressed the existence and contents of Multi Product License Agreement which it had with Qualcomm wherein Ericsson had granted license in respect of some of its patents to Qualcomm to make, use, sell and import and therefore, the claim of Ericsson that it is not getting royalties is moot. Moreover and additionally, Xiaomi also averred that Ericsson was fully aware that Xiaomi was using Qualcomm’s chips especially in view of the documents and the fact that testing was conducted on a device using Qualcomm’s chipsets.

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