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China’s Xiaomi slapped with patent-infringement suit by Blue Spike in US over upcoming Mi 5, Mi 5 Plus smartphones

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Thai models show off Xiaomi’s iMi smartphones, in this file photo. The Chinese company has started selling handsets overseas but not yet in the US. This didn’t stop Texas-based Blue Spike from filing a patent-infringement suit against Xiaomi in its home state last month. Photo: SCMP Pictures
Zen Soo

Chinese smartphone giant Xiaomi’s expansion plans to the United States may be negatively affected after the company was slapped with a lawsuit by Blue Spike LLC, which claims that Xiaomi has infringed on its patents with devices such as the upcoming Mi 5 and Mi 5 Plus.

Blue Spike filed the lawsuit last month in Texas, the state in which it is based. While Blue Spike claims to own over 98 patents in content management and applied security, the company is sometimes referred to as a “patent troll” due to its habit of snapping up patents and then using them later to sue large technology companies such as Google and Yahoo! for alleged patent infringement.

In the latest lawsuit, Blue Spike claims that Xiaomi’s smartphones, such as its Mi 4, Mi 4 LTE, Redmi 2, Redmi 2A and even the yet-to-be released Mi 5 and Mi 5 Plus have infringed on its “Data Protection Method and Device” patent.

READ MORE: Lawsuit alleges Beijing colluded with Chinese telecoms giant ZTE to protect it from US competitor

The lawsuit was filed in the US, a smartphone market Xiaomi has not yet officially entered. Hugo Barra, vice president of Xiaomi’s international operations, told Bloomberg in July that the company plans to sell its smartphones in the US, although that could still be a year off.

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Xiaomi only sells accessories such as earphones in the US market. The upcoming Mi 5 and Mi 5 Plus are therefore expected to be its first smartphones for release there. Both have received FCC certification, a prerequisite for foreign companies selling smartphones in the US.

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The signs that point towards Xiaomi’s entry may be what prompted Blue Spike to file its suit, possibly in hope of a hefty settlement to prevent any product delays.

When contacted by the South China Morning Post, Xiaomi declined to comment on the issue.

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