Xiaomi India has issued a clarification regarding the seizure of funds worth INR 5,551.27 Cr by the Enforcement Directorate (ED), stating that all royalty payments are legitimate.
Xiaomi said in a statement that it had signed a legal contract with Qualcomm Group (USA) to licence intellectual property (IP) for smartphone manufacturing. Both companies believe that Xiaomi India’s payment of royalty money to Qualcomm is a legitimate commercial arrangement. Over 84% of the INR 5,551.27 Cr seized by the ED were royalty payments made to Qualcomm for using in-licensed technologies such as standard essential patents (SEPs) and IPs in Xiaomi India’s smartphones, according to the statement.
