Xiaomi slapped with patent infringement charges by Coolpad

Xiaomi is faced with a hindrance as it moves towards its blockbuster IPO. The Mi series smartphone maker is slapped with patent infringement charges by its rival Coolpad, who is also a Chinese smartphone maker. Coolpad demands a ban of Xiaomi devices.

Xiaomi, whose handsets are much cheaper than Apple (APPL), has a great demand in China and India. Coolpad claims that its larger rival Xiaomi built its smartphones on stolen technology. These violations came to light early this year and Xiaomi was notified about the violations. When Xiaomi failed to address the issue, Coolpad filed a lawsuit against its rival through its subsidiary Yulong Computer Technology.

Shenzhen-based Coolpad has taken a legal action against three group firms of the Beijing-based company led by Lei Jun (Xiaomi Telecom Technology Co Ltd, Xiaomi Technology Co Ltd and Xiaomi Factory Co Ltd). The lawsuit is filed at the Shenzhen Municipal Intermediate People’s Court.

Xiaomi, who is applying for a Hong Kong stock listing with dual share classes, is blamed for copying Coolpad’s multi-sim design and other technology linked to UI. Due to this, Coolpad wants a ban on nearly 8 devices manufactured by Xiaomi and demands compensation for the losses incurred.

Since March 2017, Coolpad has suspended trading its shares. The unaudited results released last year show that Coolpad incurred a loss of $542 million in 2016. On the other hand, Xiaomi witnessed a three-fold increase in its operating profit last year when compared to 2016.

Xiaomi’s upcoming IPO is set to be one of the largest by a Chinese company after Alibaba (BABA). The company hopes to raise $10 billion in its public offering.