Sun Patent Trust Files FRAND Lawsuits Against Xiaomi In France And India Over Patent Infringement

Sun Patent Trust Files FRAND Lawsuits Against Xiaomi In France And India Over Patent Infringement

Legal battles are unfolding for Chinese smartphone giant Xiaomi as it faces accusations of patent infringement in both France and India. Proceedings have been initiated in these countries regarding a fair, reasonable, and non-discriminatory (FRAND) dispute over LTE-Advanced (LTE-A) technology Patents. Sun Patent Trust, a US-based patent holder, has filed lawsuits against Xiaomi, alleging unauthorized use of LTE-A technology in its 4G handsets since late 2018.

In a legal dispute that began approximately five years ago, Xiaomi has been accused of unlawfully using standard essential patents (SEPs) owned by Sun Patent Trust. Proceedings have been initiated at both the Paris Judicial Court and the High Court of New Delhi, India.

The case involves Xiaomi's use of Long-Term Evolution Advanced (LTE-A) technology patents, which establish 4G communication standards. The lawsuits are valued at approximately $300 million.

The Paris court will focus on resolving and determining a licensing agreement for a worldwide portfolio of 167 patent families of standard essential patents (SEPs), under fair, reasonable, and non-discriminatory (FRAND) terms. Xiaomi has been accused of utilizing the technology in nearly all 4G-enabled devices it has manufactured since late 2018.

In India, Sun Patent Trust will commence patent infringement proceedings aimed at seeking financial remedies against the Chinese firm for its utilization of the standard essential patents (SEPs) concerning this significant market.

Historically, the typical venues for establishing global FRAND rates have been the US, UK, and China. Sun Patent Trust stated that it opted for France as "part of an innovative approach to resolving international disputes concerning SEPs."

France was selected as the venue also because it is the home country of the European Telecommunications Standards Institute (ETSI), the standards body responsible for telecommunications, which will be called upon to serve as an expert witness.

Additionally, it highlights that the French legal environment offers a significant perspective on an international IP dispute, facilitating its efficient resolution across other jurisdictions.

Sun Patent Trust, which acquired numerous patents from Japanese electronics firm Panasonic, initially approached Xiaomi in 2019. In a press release, it indicates that since then, the "Chinese firm's conduct has suggested that it has no intention of reaching FRAND licensing terms."

The proceedings initiated by Sun Patent Trust are distinct from the set of 24 lawsuits filed in November 2023 by Panasonic against Xiaomi and Chinese electronics-maker Oppo worldwide.

Joseph Casino, managing trustee at Sun Patent Trust, remarked that the trust aims to maintain a "reasonable, open, and transparent" approach in all negotiations and that this marks only the second instance the trust has resorted to litigation since its formation in 2015.

Casino urged Xiaomi to engage in negotiations and agree to FRAND terms, emphasizing that "SEPs are not intended to be punitive but rather to facilitate technology adoption by offering reasonable licensing terms for everyone in the market."

Hoyng ROKH Monegier is representing Sun Patent Trust in France, while Anand and Anand are representing Sun Patent Trust in the Delhi High Court, India.

Established in 2015, Sun Patent Trust owns a portfolio of over 5,000 patents and pending applications, providing protection across North America, Europe, and Asia.

Xiaomi's first-quarter results revealed a 100.8% year-on-year increase in adjusted net profit to RMB6.5bn (US$915m).