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Coolpad wants to settle things out of court with Xiaomi in the patent infringements case

Coolpad alleges that Xiaomi has failed to respond to their concerns since 2014.

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Last week reports came out claiming that Coolpad has sued Xiaomi in a patent infringement case that involved the infringement of four distinct patents. Coolpad made a statement confirming the news in New Delhi, where it clarified the matter and intentions of the company.

Coolpad’s Chief Intellectual Property Officer, Nancy Zhang, claims that the company first noticed the infringements made by Xiaomi back in the year 2014 when it promptly communicated the infringement concerns to Xiaomi and asked for a cooperative settlement, but have not heard back from them yet.

Coolpad indicates that Xiaomi had infringed upon four patents that the company holds which include the Dual-Sim-Card-Standby technology that earned them the second prize for Technological Progress, Shenzhen Mayor Award and China Patent Award. The other three are intellectual infringements that include the ‘icon relocation to another page’ feature.

Coolpad Group CEO Jiang Chao said in a company meeting, “If cumulative achievements of thousands of R&D engineers’ working from day to night for 25 years, are arbitrarily plagiarised and not pursued, we should reflect on our tolerance and this will ultimately harm innovation in the entire nation and the future generations.”

Nancy Zhang speaks about Coolpad’s decision to take legal action and says, “Coolpad wanted a cooperative settlement with Xiaomi, but the non-responsiveness finally convinced us to take legal action in January 12, 2018.”

With China recently strengthening its IP rights laws by introducing a system of punitive damages for intellectual patent infringement, Coolpad subsidiary Yulong Computer Telecommunication Scientific (Shenzhen) Co. Limited filed a case against Xiaomi Telecom Technology Co, Xiaomi Technology Co and Xiaomi Factory Co, in Shenzhen Intermediate People’s Court on January 12, 2018 which the court accepted on January 25, 2018.

On May 3, Yulong, submitted the request on the ban of the concerned Xiaomi products and the list includes eight Xiaomi phones, namely Mi 6, Mi Max 2, Mi Note 3, Mi 5X, Redmi Note 4X, Mi Mix 2, Redmi Note 5 and Redmi 5 Plus. Following this on May 10, 2018, Coolpad’s subsidiary company Yulong, commenced lawsuits for the invention patent disputes against Xiaomi Telecom technology Co. Ltd., Xiaomi Technology Co. Ltd., and Mi Home Business Co. Ltd First Branch in Nanjing Intermediate People’s Court, Jiangsu Province.

Coolpad alleges that Xiaomi is trying to stall the court process by ordering an enquiry into the validity of the patents held by Coolpad. Coolpad provided proof of the patents held by it and had provided the registration number, application date and approval date of all four of its patents.

Syed Tajuddin, CEO, Coolpad India commented on the situation and said, “We don’t seek to damage anyone’s business and we want to work with Xiaomi in resolving this. Innovation is not the burden on just one company and can be shared among different companies in a cooperative manner.”

Besides Xiaomi, Coolpad has been involved in litigation with two other unnamed companies and in a cooperative enterprise with three other Shenzhen based tech companies.

With Coolpad moving its headquarters to San Diego in the US, it is in the process of becoming a US based company with its hardware production headquarters in Shenzhen. The company has around 100 patent applications in the US and around 300 in India.

We have reached out to Xiaomi, and will update this story once we receive the company’s response.

Update:

We have received a reply back from the Xiaomi spokesperson with the following statement:

“Xiaomi is committed to protecting and respecting intellectual property rights. We have established effective intellectual property partnerships with companies such as Qualcomm, Microsoft and Nokia to strengthen and grow our patent portfolios. As of March 31, 2018, we had over 3,600 patents registered with the State Intellectual Property Office of mainland China and over 10,900 pending patent applications in mainland China. Globally, we had over 3,500 patents registered and over 5,800 pending patent applications in various overseas countries and jurisdictions, which were primarily filed in the United States, Europe (including but not limited to, UK, France, Germany), India, Japan and Russia.

Xiaomi was made aware that Coolpad filed the motion before the Shenzhen Intermediate People’s Court regarding alleged patent infringements. However Xiaomi understands that the filing has yet to be accepted by the court.

Xiaomi has requested the Patent Reexamination Board of SIPO to declare the invalidation of the three patent rights regarding the above mentioned patent infringement law suit.

Xiaomi will fully cooperate with the authority’s investigation and expects the issue to reach a fair resolution under the legal framework.”

  • Published Date: May 31, 2018 4:28 PM IST
  • Updated Date: May 31, 2018 5:34 PM IST