Ericsson has accused Chinese smartphone vendor Xiaomi of violating the Delhi High Court’s order by selling phones without Qualcomm chipset through Xiaomishop.com.
In December 2014, the Delhi High Court blocked sales of some Xiaomi phones in the market for not paying royalties to Ericsson.
However, the Chinese smartphone vendor Xiaomi has refused the allegation.
Xiaomi said, the online shop Xiaomishop.com is not authorized by Xiaomi to sell phones anywhere in the world including India.
The company is also going to take legal action against the portal as it has continued selling Xiaomi products.
The court is yet to give a verdict about whether the grey-market operation is a Xiaomi business, but has continued the company’s right to sell its Qualcomm-based phones until at least March 18, 2015.
Xiaomi also has to deposit 100 rupees with the Delhi High Court for each phone sold.
The court also appointed local commissioners to visit five customs offices in Delhi, Mumbai, Bengaluru, Chennai and Kolkata to collect information on all Xiaomi devices being imported, including the ones by third parties.
On December 8 2014, the high court restrained Xiaomi and Flipkart from selling in India handsets of the mobile maker that run on the technology patented by Ericsson.
Xiaomi is selling its smartphones through flash sales in partnership with e-commerce website Flipkart.