Micromax Gets Injunction Order against OnePlus Mobile Sales in India
The Delhi High Court that heard the case filed by Micromax Informatics Limited (popularly known as Micromax) and granted an interim injunction order in favor of Micromax against Chinese mobile phone company Shenzhen OnePlus Technology Company. The OnePlus Company has been restrained from selling, shipping and marketing their mobile phones in India for the moment. The injunction was made in view of the launch of Micromax’s YU phone in India scheduled forDecember 20. The Single Bench Justice Manmohan Singh allowed OnePlus to dispose of its stock in the market while passing the injunction order.
Senior Advocate Rajiv Nayar along with Economics Law Practice lawyers Kirat Singh Nagra, Kartik Yadav, Rohan Shah and Jyoti Pawar represented Micromax in the court and OnePlus was represented by senior advocate Sudhir Chandra along with other advocates Aman Taneja and Nischal Anand. The US based operating systems firm Cyanogen was represented by Advocate MS Ananth and Senior Advocate Jayant Bhushan.
Cyanogen and Micromax had entered into an agreement that gave Micromax exclusive rights to use the Cyanogen operating system in India with effect from 26 September 2014. Cyanogen has also said in the agreement that it would not collaborate with any other manufacturer. The Ambient Services and Application Distributors Agreement was the name given to the agreement between Micromax and Cyanogen. OnePlus came to the Indian market with OnePlus One handsets on 2nd December 2014 and these handsets were using Cyanogen’s operating system for which Micromax was holding the exclusive rights.
Earlier, there was a suit filed by OnePlus seeking injunction against Cyanogen and Micromax on the basis of an alleged Trademark License Agreement for restraining the companies from filing proceedings against OnePlus in India. They believed that the agreement that they had gave them the permission to sell Cyanogen OS phones in India. But, the High Court upon perusal of the provisions in the agreement said that the exclusive agreement held by Micromax would outweigh the non exclusive trademark agreement that OnePlus holds and hence Micromax has the exclusive rights to sell Cyanogen OS phone in India.
The court also observed that Cyanogen has been changing its stance from time to time through various press releases and statements in online media and it is just looking at its business interest. The Court concluded that if the interim orders are not passed, then Micromax would suffer from huge financial loss and injury. The balance of convenience also weighs heavily in favor of Micromax and hence OnePlus is not allowed to ship any stock to India that bears Cyanogen mark on it.