Tech giants accuse Indian agency of ignorance in Xiaomi spat

A lobby group including Apple Inc. and other technology giants operating in India called out the authorities for misunderstanding how patent fees work, following local officials’ dispute with Xiaomi Corp.

In a letter to ministries, the India Cellular and Electronics Association urged the federal government to intervene and accused the country’s enforcement agencies of a “lack of understanding” of royalty payments in the technology industry.

India’s anti-money-laundering agency is accusing Xiaomi of moving money out of the country by falsely claiming it was for patent-fee payments. The agency seized more than Rs 5,400 crore from a local unit of the Chinese smartphone maker in April, a move that has since been put on hold pending a final court decision.