Delhi High Court Directs Xiaomi To Deposit ₹272 Crore In SEP Infringement Suit By Malikie

The Delhi High Court has asked Xiaomi Corporation to deposit around ₹272 crore (about $28.7 million) as pro tem security in a patent infringement suit involving cellular Standard Essential Patents (SEPs) brought by Malikie Innovations.

In its April 30, 2026 judgment, Justice Tejas Karia said a temporary arrangement of this kind was needed to balance the equities between the parties as the case proceeds.

A pro tem direction is an interim measure intended to secure the plaintiff's interests during the pendency of the proceedings.

The Court took note of Xiaomi's decision to file a rate-setting suit before a court in China as a relevant factor in assessing the conduct of the parties at the prima facie stage.

The dispute arises from an SEP infringement suit filed by Malikie concerning three Indian patents (IN 283303, IN 317530, and IN 335982) relating to 3G, 4G, and 5G cellular technologies.

Malikie, which acquired and licensed these assets from BlackBerry, argued that Xiaomi is an “unwilling licensee” that has been manufacturing and selling standard-compliant mobile devices in India without paying royalties or executing a licence on Fair, Reasonable, and Non-Discriminatory (FRAND) terms. The company manages a portfolio of approximately 32,000 patents originating from BlackBerry.

Xiaomi, on the other hand, contended that the suit was liable to be dismissed for non-joinder of BlackBerry as a necessary party under Section 109 of the Patents Act. It also argued that Malikie had failed to provide objective evidence such as comparable third-party licence agreements to justify its royalty demands, and pointed to the assignment value of the suit patents at $100 to question the claims.

Xiaomi further submitted that its proceedings before the Shenzhen Intermediate People's Court were confined to Chinese patents and did not amount to any admission regarding the Indian suit patents.

Evaluating the material on record, the Court held that Malikie had established a prima facie case on validity, essentiality and infringement of the suit patents, relying on Xiaomi's declarations of compliance with cellular standards and the absence of disclosure of any alternative technology.

“Therefore, considering the said investigation and the report filed by the Plaintiffs, there is a genuine apprehension that during the proceedings of the Suit and if a decree is passed in favour of the Plaintiffs and damages are awarded, the Defendants may not be able to pay the same. Based on the above, the Plaintiffs have established a prima facie case on the validity, essentiality and infringement of the Suit Patents,” the Court observed.

The Court accordingly directed Xiaomi to deposit ₹272 crore with the Registrar General within six weeks, or furnish an unconditional bank guarantee for the same amount.

“The Defendants shall deposit a sum of ₹272 crores with the Registrar General of this Court within a period of 6 weeks from today. This amount shall be kept in an interest-bearing fixed deposit on autorenewal mode,” it ordered.

The Court added that in case of non-compliance, the plaintiffs would be at liberty to seek an interim injunction.