OnePlus One 64 GB Sandstone Black variant went on sale exclusively on Amazon India on December 2 priced at Rs 21,999. The launch was somewhat marred by the announcement of Cyanogen Inc signing an exclusive deal with Micromax, which would prevent them to provide OTA updates to OnePlus One units purchased from Amazon India.
Just when you thought, a banning saga has partially been settled and there is no more hiccups for Chinese manufactures, it appears another Chinese manufacturer is getting banned by the Delhi High Court. Yes, we are talking about the Xiaomi ban being partially lifted and Redmi 1s going on sale on December 23, again! Looks like, OnePlus is in line for getting the stick by the Delhi High Court this time. This time, it is not related to any patent infringement. It is more about the Micromax-Cyanogen Inc exclusive deal and Micromax crying foul.
The Micromax YU branded smartphones with Cyanogen OS will be unveiled on December 18 and sold exclusively on Amazon India. As Micromax has signed an exclusive agreement with Cyanogen Inc for “YU” brand, it is going all blazing guns on OnePlus. Micromax has secured a temporary injunction by the Delhi High Court on OnePlus shipping, selling and marketing the OnePlus One in India.
OnePlus can sell the remaining stocks with Amazon India which has already been imported by them before Tuesday. The company is not allowed to import any new stocks to India which has the ‘Cyanogen’ branding at the back of the phablet. The lawsuit has been filled by Micromax as it claims OnePlus is infringing on the exclusive rights that they have acquired by an “ambient services and application distributions agreement” with Cyanogen Inc.
Micromax claims that they have “incurred major expenses for creation of a brand exclusivity for providing to Indian customers mobile phones with Cyanogen operating systems” and “it would suffer irreparable harm and loss if the defendants (OnePlus) are permitted to continue with their illegal acts in violation of the agreement between Micromax and Cyanogen”.
On the other hand, OnePlus has claimed that the company has entered a collaboration and trademark licence agreement with Cyanogen Inc in February. That agreement would allow OnePlus to use Cyanogen’s trademark and software anywhere on the planet except China. OnePlus has also stated to the Delhi High Court that Cyanogen Inc had informed them about the termination of their agreement a fortnight before its launch in India. Due to this Micromax-Cyanogen Inc deal, Micromax has an exclusive licence for South Asia whereas OnePlus has a non-exclusive licence for the entire planet except China.
OnePlus has the luxury of suing Cyanogen Inc for contract breach, but that won’t give them any relief in the Indian verdict, as it will be governed by the laws of the state of California, as per the agreement between the two. Cyanogen Inc has already stated that its agreement with Micromax surpasses all previous agreements.
The threesome between Micromax-Cyanogen-OnePlus is getting messier day by day. Although Micromax has a fair reason, we believe the company is scared of OnePlus One cannibalising the “YU” brand as it will also be sold exclusively by Amazon India. We would have more clarity on this issue soon when we hear from the OnePlus officials.