Chinese Xiaomi copycat hit with patent infringement lawsuits, sales bans

“Xiaomi Corp. became the biggest smartphone seller in China without an extensive — or expensive — collection of patents. That low-cost approach is now backfiring as accusations of technology infringement stall its global push,” Bloomberg News reports. “Ericsson AB sued Xiaomi in India, saying the smartphone maker hadn’t licensed inventions by Ericsson that enable wireless devices to connect to networks. Judges banned some Xiaomi devices in the company’s biggest overseas market, pending another hearing next month.”

“The lawsuit threatens founder Lei Jun’s drive to boost next year’s shipments to 100 million units, a fivefold gain from 2013, with an eye toward overtaking Samsung Electronics Co. and Apple Inc globally. It also puts Xiaomi’s strategy of selling devices for near-cost at risk as the Beijing-based company increases spending on research and licensing to avoid the legal battles Samsung and Apple fought around the world,” Bloomberg reports. “‘The nightmare will keep on going,’ said Neil Shah, Mumbai-based research director for devices at Counterpoint Research. ‘Patent companies in other countries will now go after Xiaomi in other markets and use the India market as the example.'”

“Low research costs helped Xiaomi go from startup to the world’s No. 3 smartphone vendor within four years of its founding. Virtually all those sales were in China, where weak enforcement of intellectual-property rights meant Xiaomi was ‘much more protected,’ Shah said,” Bloomberg reports. “To overtake Samsung and Apple, Xiaomi needs to enter markets with stringent rights enforcement that may embroil Xiaomi in more disputes, Shah said. ‘Expansion into countries with strict intellectual property laws, such as the U.S. or Japan, has long been a challenge for most Chinese smartphone brands, including Xiaomi,’ said Neil Mawston, executive director of researcher Strategy Analytics. ‘Xiaomi will find its rapid smartphone growth at home in China is much harder to replicate abroad.'”

Read more in the full article here.

MacDailyNews Take: Hey, maybe the blatant patent and trade dress infringers can make it up in volume? (smirk)

Xiaomi’s knockoff parade:

Xiaomi’s MIUI 6 Android skin mimics Apple's iOS 7
Xiaomi’s MIUI 6 Android skin mimics Apple’s iOS 7
One more thing... Apple CEO Steve Jobs (left), Xiaomi CEO Lei Jun (right)
One more thing… Apple CEO Steve Jobs (left), Xiaomi CEO Lei Jun (right)
Xiaomi M4 (left), Apple iPhone 5s (right)
Xiaomi M4 (left), Apple iPhone 5s (right)
Xiaomi MiPad
Xiaomi MiPad

Related articles:
China’s Xiaomi made a meager $56 million profit in 2013 – December 15, 2014
Xiaomi’s MIUI 6 Android skin mimics Apple’s iOS 7 – August 18, 2014
7 things Chinese copycat Xiaomi blatantly ripped off from Apple – July 24, 2014
Xiaomi MiPad? Seriously? Apple must be absolutely furious – May 15, 2014
The Death Spiral: It’s what happens to those who steal from Apple – November 10, 2014

15 Comments

          1. China is just another classic case of dire socialism, aka ‘communism’, destroying incentive. The result is no ability to actually INVENT or INNOVATE, no matter how much education they throw at the comrades. Commie = instantly FAILed state, resulting in totalitarianism, no citizens are inspired to give a rat’s, thus the incentive to create a criminal state. Thus China: Criminal nation.

            Thanks for the cheap labor China. But we have to laugh every time you announce another push to make China innovative. NOT going to happen.

    1. But the rest of the world buys their products and sends production there. It’s not like anyone can boycott the nation. Even if you try it’s virtually impossible to find any piece of electronics that doesn’t contain something from China.

  1. Unfortunately, we have proven in the US that copyright infringement is okay. Sure, we might convict you, but then you can go right ahead and carry on with business as usual. See: Samsung.

  2. “with an eye toward overtaking Samsung Electronics Co. and Apple Inc globally.”

    back to reality: in 2013 xiaomi made 566 million in profit and Apple 37,000 million. (also Xiaomi’s expansion overseas is financed by borrowing money)

  3. Xiaomi makes Samsung’s designs look innovative. Seriously, how much can you copy Apple and get away with it?!

    “Low research costs” is an interesting way to describe blatant copying and IP theft. China will continue have trouble in the world economy as long as it continues to foster such theft.

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