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Will Rajan Idenify Faultlines Before Reducing Interest Rates?

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An Economy of Watering Holes

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Cabinet Expansion-Gainers vs Losers

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When will we say No to Union General Budget?

Indian Fiance Minister Arun Jaitley will move the second General Budget on 28th February 2015.

Showing posts with label Economics-Court cases. Show all posts
Showing posts with label Economics-Court cases. Show all posts

Tuesday 16 December 2014

Xiaomi Set to Re-start its Sales in India

Business Economics & Services Team (BEST)



                            Xiaomi Set to Re-start its Sales in India

In a major reprieve to the Chinese smartphone maker Xiaomi and its  third party sales partner e-commerce company Flipkart, the Delhi High Court has allowed it to sell the smart phones in India. Earlier, a  single bench of the same court banned sales till the next date of hearing set for 5 February 2015. However, the court has imposed certain conditions for the sale such as:-
1. Handsets should use Qualcomm's chip sets
2.The company also has to deposit with the court Rs 100 after the sale of every 3G technology supporting device till January 5, 2015
Importantly, the court advanced the date of next hearing from February 5 2015 set earlier to 8 January 2015.
A company official of the Xiaomi said that it will resume its sales from 23 December 2014 since it might take sometime to re-start its operations. It may be noted that Xiaomi sells its devices only through its e commerce sales partner Flipkart. Incidentally, within a short time, Xiaomi has become a major player in the Indian market and is said to have sold over 800,000 pieces since July this year.
It may be noted that the entire episode has happened because of the case filed by Ericsson, another telecom major complaining that the Chinese company has violated  its  IPR. Ericsson has pointed out eight instances of ovulation, which has led to the ban. Aggrieved by the single bench's decision,  Chinese company has gone in appeal to the double bench.
There are a few takeaways for the foreign investors in the adjudication of this case.
1.The fast track in which the case has been adjudicated so far. The single bench's decision to ban the sales was only a week back.
2. Indian judiciary and administration are trying their best to revamp the justice delivery systems particularity in cases where foreign investors are involved.
3. Growing number of cases are decided by the Indian courts in the IPR segment. In the last one month or so, at least three high profile cases have been decided by different layers of the judiciary