Laotoule (老头乐) challenger settles with Xiaomi Automobile (小米汽车) after design-patent dispute

Lead

A small Shandong electric-vehicle maker known in China as "Laotoule" (老头乐) moved to invalidate three Xiaomi Automobile (小米汽车) design patents — but it has been reported that the two sides reached a settlement the day before a scheduled hearing. The dispute concerned exterior design patents for a rear bumper, a front bumper and a front headlight, with a public hearing set for March 26.

Who sued whom

The plaintiff is Shandong Yanlu New Energy Vehicle Co., Ltd. (山东燕鲁新能源车业有限公司), a Gaotang County, Liaocheng–registered company with 10 million yuan in capital and roughly 20 employees; the firm is fully owned by an individual, Lou Biao, and produces the "Yunlei" (韵蕾) brand electric three‑wheelers that fall into the colloquial "Laotoule" category. It has been reported that Yanlu filed an invalidation request against Xiaomi Automobile's design patents earlier this month.

Settlement and statements

According to media outlet Fengkou Finance, the parties reached a confidential settlement on March 25. A company executive, speaking anonymously, reportedly told reporters the matter was resolved and that further details were "not convenient to disclose," adding that Xiaomi would announce the outcome “in the next couple of days.” Xiaomi Automobile declined to answer questions about the litigation when contacted.

Context and implications

The episode underscores how intense intellectual‑property frictions have become as big tech firms like Xiaomi push into hardware and new-energy vehicles, while small domestic makers guard their designs and market niches. This appears to be a domestic IP settlement and not directly related to wider trade or sanctions issues, yet it illustrates the competitive, high‑stakes environment of China's EV ecosystem — where a tiny three‑wheeler maker can press a claim against a high‑profile new entrant. It remains to be seen whether Xiaomi will disclose settlement terms or whether similar disputes will follow as tech giants scale their auto ambitions.