China's Xiaomi has been banned from selling smartphones in India, the world's third largest smartphone market, as part of a patent dispute with Ericsson.
The Delhi High Court has ordered Xiaomi and retail sales partner Flipkart not to sell, manufacture or assemble its smartphones in India until the court hears the case on February 5, the Guardianreported.
India's customs officials have been told to block the impact of Xiaomi smartphones and other devices that could potentially infringe Ericsson patents.
Xiaomi has vowed to respond promptly to the challenge and fully comply with India's laws, Xiaomi India head Manu Jain said in as statement.
The report suggests that Xiaomi is likely to attempt to settle the matter out of court. The lawsuit may influence the vendor's decision whether to pursue a partnership aimed at manufacturing some devices in India.
Xiaomi had another setback in India when it was accused of sending usage data to Chinese servers, leading the Indian government to instruct the military not to use the devices. Xiaomi responded by insisting that users have to opt in to share data, and by establishing an Indian data center.