The dust has barely settled after the bombshell announcement that Cyanogen Inc. quietly signed an exclusive deal with OEM Micromax in India. That left the OnePlus One with an uncertain future in India without a software partner, and now things are getting even worse. The OnePlus One has been banned in India after legal action by Micromax.
Micromax—which plans to launch its YU brand with Cyanogen soon—has gone to the Delhi High Court to allege OnePlus is infringing on its exclusive licensing of Cyanogen OS. The court agreed, and now OnePlus is barred from selling, marketing, or even importing its devices in India. Additionally, the company is not permitted to ship any device in India that bears the Cyanogen logo or branding even after it gets the OS situation worked out.
As we recently discussed, OnePlus says it was only notified of the exclusive agreement between Micromax and Cyanogen two weeks before the OPO was to launch in India. It plans to have a custom ROM of its own ready by February, with a beta release sooner. However, the devices shipping in India right now still have CyanogenMod installed. They won't get official support or updates, but apparently that's not good enough for Micromax. Although, OP might have shipped some global devices in India too.
In petitioning the court, Micromax claimed that 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." The OnePlus One is conveniently out of stock on Amazon India right now, and it likely won't be coming back any time soon unless the company can get Indian courts to reconsider. It's not impossible—that's what Xiaomi did after it was handed a similar injunction last week. That ban has been temporarily lifted after new action by Delhi High Court. I'm sure OnePlus' lawyers are scrambling right now to find a similar solution.