India and Xiaomi are still having an issue with patent fee payments. The problem started after the giant Chinese smartphone maker moved their money out of the country.
(Photo : Photo by SAJJAD HUSSAIN/AFP via Getty Images)
In this photograph taken on August 20, 2019, customers inspect smartphones made by Xiaomi at a Mi store in Gurgaon. (Photo by Sajjad HUSSAIN / AFP)
But, Xiaomi hasn't stated the total amount of revenues they were pulling out. Now, Apple and other tech giant firms claim that Indian officials misunderstand how to patent fees work.
Are they actually siding with the Chinese gadget developer? This is still hard to conclude since they didn't mention the name of Xiaomi in their letter.
India Vs. Xiaomi: Did Officials Misunderstand Royalty Fees?
According to Bloomberg's latest report, the India Cellular and Electronics Association (ICEA), which consists of Google, Foxconn, Apple, Amazon, and other tech giant firms, sent a letter to India's ministries.
(Photo : Photo by GREG BAKER/AFP via Getty Images)
Two women walk past a Xiaomi store in Beijing on January 15, 2021, as shares in the company collapsed on January 15 after the United States blacklisted the smartphone giant and a host of other Chinese firms. (Photo by GREG BAKER / AFP)
ICEA's members said that the country's law enforcement agencies lack understanding of royalty fees in the rising tech industry.
They added that accusing companies of illegal patent fee payments could have a negative effect on India's overall business.
If India's anti-money laundering agency continues doing this, they also have to implement their regulations on other companies, such as Apple and other members of ICEA.
This can lead to a domino effect, which can be bad for the country's tech industry. Meanwhile, Xiaomi already disputed the recent asset confiscation, around $700 million.
But, India's enforcement authorities are still strong with their stance, saying that patent fee is a simple way of moving out huge amount of money.
Beijing Also Against India's Accusation
Reuters recently reported that Beijing also shared its concern regarding the latest accusation against Xiaomi's patent fee payments.
"China hopes India will provide a fair, just, non-discriminatory business environment to Chinese companies with investments and operations in India," said Beijing's spokesperson Zhao Lijian.
He added that Indian officials must carry out investigations in compliance with the law and improve international investor confidence.
On the other hand, Xiaomi's intentional app slow down action previously happened.
Meanwhile, Xiaomi's wireless charger similar to Apple's MagShare was unveiled.
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Written by: Griffin Davis
