Xiaomi sued Xiaomi for 30 million Yuan (1.5 billion Ft)

On 13 February, Xiaomi Technology Co., Ltd. v Shenzhen Xiaomi Trading Co., Ltd. trademark the first hearing of a case concerning an infringement and unfair competition dispute. The judgment found that Shenzhen Xiaomi had committed a bad faith infringement and ordered Xiaomi Technology to pay RMB 30 million in damages.

The judgment shows that the applicant, Xiaomi Technology, applied for registration of the word mark 'Xiaomi' No 8228211 in April 2011. It then widely publicised and used its mark.

Defendant Shenzhen Xiaomi sold 182 products, including chargers, power banks, fans, massagers, etc. on its e-commerce Tmall store under the business name "Xiaomi Digital Store" and "Shenzhen Xiaomi Trading Co., Ltd." in unfair competition. Among them, the sales address of 114 products included "Xiaomi Digital Store", "Xiaomi Store" and "Xiaomi", which were identified as trademark infringement.

According to the judgment, the Shenzhen Central High Court obtained the transaction data of the "Xiaomi Digital Store" from Tmall between 2 February 2019 and 31 January 2021. The court ultimately found that the total sales of 182 products of defendant Shenzhen Xiaomi's unfair competition amounted to 154 million. Of these, 114 infringing products had sales amounting to 135 million and found that the gross profit margin of defendant Shenzhen Xiaomi was 30,78%.

On the basis of the above, the court finally decided that the defendant Shenzhen Xiaomi should compensate the plaintiff with a total of approximately 47 million yuan. As the amount exceeds the plaintiff's claim, the plaintiff Xiaomi Technology's claim of 30 million yuan (1.5 billion HUF) is fully justified.

This is not the first time that Xiaomi Technology has been awarded compensation for trademark infringement and unfair competition disputes. In 2019, one company was ordered to compensate Xiaomi Technology for losses of up to 50 million yuan.