Three Xiaomi subsidiaries were sued over Android patent infringement by Coolpad Group-owned Yulong Computer Communications Technology earlier this month, with the Chinese original equipment manufacturer's lawsuit also naming Shezhen Tongtianda Electronics Co as the fourth defendant. The OEM alleges the infringement of three patents describing a proprietary mobile notification mechanism, user interface, and an app icon management solution, all of which are understood to have been primarily designed for the Android operating system. The plaintiff claims the four companies violated its protected intellectual properties by implementing them into a number of previously commercialized smartphones and is asking for damages based on the revenue generated from the sales of the supposedly infringing devices.
In the meantime, Coolpad's unit is seeking an injunction that would prevent the defendants from selling any more mobile devices utilizing what it claims are its patented technologies. The plaintiff is also asking for all production of the said units to be stopped and wants the court to pressure Xiaomi into not giving any future promises that it will restart sales in the future, suggesting the lawsuit isn't targeting an out-of-court settlement. Coolpad Chief Executive Officer Jiang Chao was recently quoted as saying that many of the OEM's 10,000 patents have been infringed by a number of firms, though he didn't specify whether the supposed thefts were only committed in China. The Intermediate People’s Court of the Guangdong Province agreed to hear the case but has yet to schedule the start of its trial, with the proceedings being unlikely to be concluded before mid-2019. The exact smartphones said to be violating Coolpad's patents are yet to be publicly named.
Coolpad has several rough years behind it, with the company struggling to do business under the former leadership of LeEco which recently sold its stake in the firm amid a major cash crunch that prompted it to start liquidating some of its secondary assets at a loss in order to resume normal operations. The Chinese firm severed its ties with the indebted tech giant and is now hoping that it will have an easier time of negotiating necessary loans with banks, its CEO said earlier this month. In the long term, Coolpad is looking to expand beyond smartphones and become an artificial intelligence company with a strong U.S. presence.