The news of Xiaomi Technology Co., Ltd. IPO was a major event in the recent technology circle, which means that Xiaomi will enter a new stage after eight years of establishment.
On this occasion, the old mobile phone manufacturer, Cool Company, issued a series of announcements several times a week, alleging that Xiaomi infringed the patent rights and demanding compensation, as well as the requirement to discontinue several mobile phones such as Xiaomi MIX2 and Xiaomi6.
The following is the ins and outs of Cool's lawsuit against Xiaomi.
In January 2018, Cooler claimed that there was a patent dispute between its subsidiary and Xiaomi, and filed a lawsuit.
In January of this year, Coolpad announced that its subsidiary, Yulong Computer Communication Technology (Shenzhen) Co., Ltd. had filed a lawsuit with the Shenzhen Intermediate People’s Court of Guangdong Province due to a patent dispute with Xiaomi, and in January 2018 On the 26th, it received a total of six cases of "Notice of Accepting Cases." However, Xiaomi responded that it did not receive any prosecution documents. The information on the lawsuit was also seen on the Internet. At the same time, the fact that Cool was suing Xiaomi for infringement was not clear.
On May 4, Cool said Xiaomi continued to commit infringement after receiving the lawsuit.
On May 4th, Coolpad Group issued an announcement that the plaintiff had recently filed suit against Shenzhen City as Xiaomi Communications Technology Co., Ltd. (the defendant of the lawsuit) and Xiaomi Technology Co., Ltd. (the defendant of the lawsuit) continued to infringe after receiving the lawsuit. The Intermediate People's Court filed an application and requested the court to rule that the defendant in the lawsuit and the defendant in the lawsuit 2 immediately stopped the infringement of the patent right, that is, he requested the court to rule that the defendant immediately ceased production, sales, and promised sales, the defendant immediately stopped the sale and promised to sell the red. Mi Note4X, Xiaomi 6, Xiaomi Max2, Xiaomi Note3 and Xiaomi 5X model phone products.
On May 8, Cool filed a lawsuit against Xiaomi’s patent infringement and demanded that the latter stop selling multiple mobile phones.
On May 8th, Coolpad announced that Xiaomi had infringed on a number of its invention patents and filed an infringement lawsuit and administrative processing requests. It had filed an application with the Shenzhen Intermediate People's Court to rule that the defendant should stop the infringement of the patent right.
On May 10th, Coolpad asked Xiaomi to stop production and sales of multiple millet mobile phones and jointly pay compensation for economic losses.
On the evening of May 10, Cool Group announced that Yulong Communications had recently infringed the invention patent dispute and sued Xiaomi Communications Technology Co., Ltd., Xiaomi Technology Co., Ltd. and Xiaomizhijia Commercial Co., Ltd. Nanjing First Branch.
Yulong Communication believes that Xiaomi has infringed on its implementation method of “multi-mode mobile communication terminal call record interface system” and issued patent rights to require Xiaomi to stop production, promise sales and sales, and infringe on the patented Xiaomi MIX 2 and Redmi Note 5. Red Rice 5 Plus mobile phone behavior, coupled with compensation for economic losses.
On May 11, Coolpad held a press conference in Hong Kong to explain Xiaomi’s alleged infringement of the company’s patents.
On the afternoon of May 11, Coolpad held a media conference in Hong Kong on the dispute with Xiaomi. Regarding whether or not Cool would use Xiaomi’s patents, Cool’s Chief Intellectual Property Officer Zhang Na said that any company innovation may use the innovations of other companies and he has not received requests and negotiations from Xiaomi.
Zhang Na said that this time Coolpad initiated lawsuits against 8 companies including Xiaomi Technology, which involved 4 effective patents, 8 products such as Xiaomi 6, and so on.
In 2014, Coolpad sent a warning letter to Xiaomi several times. The content included pointing out that Xiaomi and the sales of Xiaomi’s mobile phones were suspected of infringing on Coolpad’s patent rights, and proposed friendly negotiation, but Xiaomi ignored it.
In view of Xiaomi’s infringement, there are currently 7 cases filed, 6 in Shenzhen and 1 in Jiangsu. Next, Coolpad will continue to focus on domestic and defend Xiaomi’s rights.
Liu Mingzhuo, vice president of Coolpad, said that Coolpix is trying to return to the domestic market in addition to the US market.
Cool CEO Chen Chao said, "If a cumulative tens of thousands of R & D engineers 25 years of the results of day and night, casually be plagiarized and not pursued, we should reflect on their tolerance, and ultimately hurt the entire National innovation and the future of our future generations. ”
Cool finally stated that at present, Xiaomi is required to stop production and sales of promised sales, and the final amount is decided by the court.
Xiaomi: How the stability of several patents for Cool claims rights are to be discussed.
Xiaomi said to Tencent's “First Line” that the stability of several patents for Cool claims rights is open to question. Xiaomi has already submitted an invalid request for several patents submitted by Coolpad. It is expected that this matter will have a fair solution under the legal framework.
Xiaomi said that in response to the May 10, 2018 Cool announcement that it applied to the trial court to apply for a ban in China, Xiaomi has not received any notification from the court so far. Millet's business activities are all normal and all mobile phone models are selling as usual.
Cool response to Xiaomi: The stability of the patent is not determined by Xiaomi.
In response to Xiaomi’s response, Cool’s Chief Intellectual Property Officer Zhang Na stated that the stability of the patent was not determined by Xiaomi, but was determined by the review committee of the National Intellectual Property Commission. Xiaomi’s patents involved, and Cool’s patented intellectual property rights issued by the state, had relevant rights. .
Interpretation: Or will affect Xiaomi's valuation and capital market attitude.
Sun Yanxi, dean of the first mobile phone industry research institute, said: “Coolie filed a patent lawsuit against Xiaomi at the time of Xiaomi’s IPO preparation, and it should be more of a brush and a sense of presence. For the market, although the long-lost Cool has also introduced new machines, its presence is low. And Cool has so far failed to clarify the direction of the future is to continue the mobile phone business, or a comprehensive shift to real estate, which is not a good sign for Cool. ”
For mobile hardware, patents are the core technology. The data shows that at present, Coolpad has applied for 10,000 patents, and millet has filed more than 23,000 patents.
Cool is currently in poor operating condition. It released its 2016 annual report in March 2018, and the 2017 annual report does not know when it will be released. According to the 2016 annual report, the remaining amount of Cool's account remaining at the end of 2016 was only HK$1.3 billion. The accountant’s report mentioned that the amount of money that can be collected to sell assets in 2017 may add up to only 100 million Hong Kong dollars.
According to the contents of the Xiaomi IPO prospectus, Xiaomi’s 2017 revenue accounted for 70% of its revenue, and most of it came from mobile phone sales. Xiaomi's failure in this battle will not only affect his reputation over the years, but also affect the capital market's judgment on Xiaomi, and even affect Xiaomi's valuation and subsequent share price.
We will continue to pay attention to the patent dispute concerning Xiaomi Coolpad.