Xiaomi taken to court by Coolpad
Smartphone maker Coolpad has taken technology giant Xiaomi to court and into the spotlight over alleged patent infringements, a move timed alongside China’s ramping up of intellectual property rights protection.
Dismissing the idea that Coolpad is simply trying to squeeze hush money from Xiaomi on the eve of the latter’s Hong Kong listing, Coolpad chief intellectual property officer Zhang Na told a news conference in Hong Kong on Friday that the litigation fits with policymakers’ growing focus on IP protection and enforcement.
Also on Friday, Xiaomi said it has filed a request to declare Coolpad’s patents invalid, adding that its business remains well-run and products are selling well.
Shenzhen-based Coolpad, once controlled by debt-ridden LeEco, alleged that Xiaomi infringed on four of its patents, two of which were granted back in 2006, two years before the Android mobile operating system was released.
Xiaomi, the world’s fourth-largest smartphone maker by shipments, filed an application for its highly-anticipated IPO last week. It could become the world’s largest flotation since Alibaba’s $25 billion deal in 2014, and the biggest in Hong Kong since AIA’s $16.6 billion IPO in 2010.
The Beijing-based tech company was previously said to target a valuation of as much as $100 billion. But within a week, investors’ mounting concerns over the hefty figure dragged it down to somewhere between $60 billion and $70 billion.
Coolpad first began sending warning letters to Xiaomi in 2014, hoping to seek a settlement over the alleged patent infringement, but received no response, Zhang said.
Its subsidiary Yulong Computer Communications Technology (Shenzhen) subsequently sued Xiaomi in a Shenzhen court in January this year.
Last week, Coolpad asked the court to ban the production and sale of eight of Xiaomi’s devices across the Chinese mainland, including the Mi 6, Mi Max 2, Mi Note 3 and Redmi Note 5. The company also took Xiaomi to court in Nanjing, Jiangsu province, on Thursday.
“The law does not protect those who sleep on their rights,” Zhang said.
She did not reveal the economic losses that Coolpad claims to have suffered from the alleged patent infringement, emphasizing that it is the court that will have the final say.