Xiaomi denies Coolpad lawsuit affecting business

Chinese smartphone and connected devices maker Xiaomi Corp said Friday its smartphone business has not been affected by a lawsuit filed by Coolpad, to which the company is actively responding.

“The stability of the patent rights that Coolpad’s unit stands for remains to be discussed. They have their own proposals and we’re actively responding, and we hope the case can be dealt with under the law,” a Xiaomi PR staff who requested anonymity told the Global Times Friday.

Zhang Na, Coolpad’s global chief patent officer, told a press conference in Hong Kong on Friday that whether the patent is stable should not be decided by Xiaomi but the Patent Reexamination Board of State Intellectual Property Office of China, according to a report from tech. qq.com.

Chinese smartphone maker Coolpad Group said in a statement late Thursday that its subsidiary, Yulong Computer Telecommunication Scientific (Shenzhen) Co, filed a lawsuit against Xiaomi Telecom Technology Co, Xiaomi Technology Co and Xiaomi Factory Co in a court in East China’s Jiangsu Province for allegedly using its patent without permission.

Yulong is demanding that the Xiaomi companies immediately stop the production and sales of some smartphone models, including the Mi MIX2, Redmi Note 5 and Redmi 5 Plus, Coolpad said.

The patent Xiaomi “infringes on” is related with the multi-sim card design and other technology related to user interface, the statement said.

“Xiaomi has invested much in research and development and accumulated a strong patent ability,” the Xiaomi PR staff said.

According to Xiaomi’s prospectus for the Hong Kong IPO, the company has gained 3,600 patents in China and registered 3,500 ones overseas by the end of March 2018.

Xiaomi Corp is aiming for a valuation of between $70 and $80 billion after it submitted its IPO application to the Hong Kong Stock Exchange on May 3, according to people familiar with the matter, the Wall Street Journal reported.

Xiaomi declined to comment on the effect of Coolpad’s lawsuit to the company’s IPO.