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Trademark Wars: Nigerian Court Rules Xiaomi Must Stop Selling Mi-Brand Mobiles For Now

Trademark Wars: Nigerian Court Rules Xiaomi Must Stop Selling Mi-Brand Mobiles For Now

A Lagos, Nigeria high court said Chinese mobile phone manufacturer Xiaomi must pull its Mi branded mobile devices off shelves across the country because someone else owns the Mi trademark, ITNewsAfrica reported.

The Federal High Court ruled in favor of Mauritius-based mi-Fone as the original holder of the Mi trademark in Nigeria — one the company has held since 2008, according to a media statement released by mi-Fone.

Mi-Fone founder Alpesh Patel said in a prepared statement that the temporary injunction is a “victory for small business and for African brands fighting to make their presence felt amongst the large non-African brands constantly entering the continent with far greater resources at their disposal.”

Mi-Fone is the first African mobile device brand, and since 2008 has registered the mi trademarks, Patel said.

“We are an African brand and believe it is our duty to small business in Africa to stand up for our rights against the giants of this industry, no matter how daunting the process,” Patel said. “If Xiaomi had done proper due diligence on Africa they would have noted that the mi brand already exists and belongs to mi-Fone.”

Xiaomi is the world’s fourth-largest smartphone maker, according to TechCabal. Its Mi-branded series of mobile devices are its flagship devices.

Xiaomi’s Mi devices could be confused for Mi-Fone’s devices — their names are quite similar. This means that Xiaomi’s recently launched Mi 5, the Mi Note and the Redmi cannot legally be sold for now.

Along with Xiaomi, other defendants named in the lawsuit include their distribution partner Mobile In Africa Limited, MIA group and Jumia, who are authorized resellers, TechCabal reported.

“Based on the recent court ruling, anyone selling Xiaomi Mi branded devices or accessories or any company selling similar-sounding products within the telecoms sector is required to remove such products from their shelves and to desist in further promotion of such products,” said L&A Associates — lawyers mi-Fone — in a statement.

Patel said his company is not averse to competition.

“However the use of the same brand name … places our business at risk. We simply cannot afford to create confusion within the consumer mindset by having two mi branded and yet separate mobile device offerings,“ Patel said, according to ITNewsAfrica.

This won’t be the first time an injunction was filed against Xiaomi. In 2014, Swedish telecommunications company Ericsson forced Xiaomi to stop advertising and selling devices, alleging that the Chinese phone maker infringed on its patents, TechCabal reported.

And it’s not the first time Mi-Fone has sued Xiaomi. In a still-to-be-resolved case in Kenya, Mi-Fone said Xiaomi’s Mi products infringed on its mi and mi-Fone trade names. Xiaomi’s devices are still available for purchase in Kenya, according to TechCabal.

If you try to buy a Xiaomi device on Jumia Nigeria’s website, a message says the devices are out of stock.

Mobile In Africa, distributor of Chinese smartphone brand Xiaomi, issued a statement regarding the trademark dispute in Nigeria, ITWebAfrica reported.

“We are aware of the matter,” said Rugter-Jan van Spaandonk, president of Mobile In Africa. “We believe the claim is without merit and it is being defended accordingly.”

As smartphone brands seek to win African consumers, local players and international labels are increasingly taking each other on, TechCabal reported:

While there is some overlap, the most likely outcome here is a truce, where the each side identifies a market segment and focuses on it.