(Yicai Global) Jan. 30 -- Beijing Xiaomi Technology Co. will actively respond to a lawsuit instigated by Coolpad Group Ltd. for alleged patent infringement. The case is closely observed by other mobile phone makers for possible additional lawsuits, market insiders say.

Yulong Computer Telecommunication Scientific (Shenzhen) Co., an affiliate of Coolpad [HKG:2369], sued Xiaomi Technology in Shenzhen Intermediate People's Court of Guangdong province for allegedly infringing on three of its patents, said a statement released by Coolpad earlier. 

In its statement, Coolpad named Xiaomi Communication Technology Co., Xiaomi Technology Co., Shenzhen Tongtianda Telecom Electronic Co. and first branch of Xiaomi Co. Shenzhen for alleged patent infringement. Xiaomi produced, promised to sell and sold products which infringed on the patents, it claimed.

Xiaomi said yesterday it was not notified of the case yet, but added Coolpad did not clarify its reasons. Xiaomi has carried out several patent cooperation deals with some world-renowned enterprises such as Microsoft Corp. and Nokia in recent years, accumulating rich patent reserves, the company emphasized, saying it will actively respond to the lawsuit, online news site Jiemian.com reported.

Coolpad demanded the court order four companies to immediately stop production, promise to sale and sale of infringing products and be compensated for economic losses. The case has been accepted, but court has yet to hold a hearing, Coolpad added.

Following Coolpad, other mobile phone makers could join patent litigation against Xiaomi Technology, which is reportedly preparing for IPO, if Coolpad wins the case, insiders said.