Malikie, Xiaomi settle UPC patent case in Mannheim

Context: Malikie Innovations, the Irish licensing firm that holds a large portfolio of former BlackBerry patents, has been suing Xiaomi in multiple jurisdictions, including a case at the Delhi High Court where Xiaomi was ordered to put up a $28.7 million security deposit (May 4, 2026 ip fray article).

What’s new: The UPC Mannheim Local Division (LD) has revealed the withdrawal of Malikie’s infringement action against Xiaomi over EP2387862 (“System and method for determining establishment causes”) (UPC_CFI_1733/2025) along with Xiaomi’s counterclaim for revocation of the same patent (UPC_CFI_1537/2026). Both sides asked the court, before the written procedure closed, to allow the withdrawal by mutual consent and without any request for a decision on costs. Judge-rapporteur Tobias Sender granted the withdrawal on August 24, 2026, closing both proceedings.

Direct impact: Withdrawing an infringement claim and its matching revocation counterclaim at the same time, with both sides in agreement and no fight over who pays costs, is a strong sign that Malikie and Xiaomi have reached a settlement covering at least this patent. The court also ordered a 50% refund of court fees to each side under the UPC’s rules for early withdrawal, paying back €15,500 to Malikie out of the €31,000 it had paid, and €13,250 to Xiaomi out of the €26,500 it had paid. The court set the value in dispute at €3,000,000 for both the infringement case and the revocation counterclaim.

Wider ramifications: Malikie still has other pending cases against Xiaomi, including a separate UPC case in Munich and disputes in India and Germany, and if the settlement pattern seen here carries over to those as well, it would fit a playbook Xiaomi has used before. Xiaomi has repeatedly shown that it prefers to license technology on terms it considers fair rather than drag out litigation once a deal is within reach, while still being willing to fight to the end against patent holders it believes are overreaching, as it did with Nera Innovations, settling over a wireless power patent (July 14, 2026 ip fray article) after getting two of Nera’s other patents in the same campaign invalidated or put on hold (June 9, 2026 ip fray article).