Categories: Tech & Society

Ericsson Sues Micromax for Patent Infringement, Worth Around Rs 100 Crores

Ericsson, the world’s largest telecom equipment manufacturer from Sweden has sued Indian mobile handset maker Micromax and its distributor for infringement of wireless patent rights.

The Swedish network equipment maker has moved the Delhi High Court claiming about Rs 100 crore in damages, saying it was taking legal action after three years of negotiations failed to yield a licence agreement on ‘standards-essential’ patents. This will make it the  largest patent suit in India’s IT and telecom space, reckon patent experts.

Ericsson has a strong patent portfolio which covers most of the technology that enables both mobile phones and the networks that support them to work.  Rivals hold other so-called essential standard patents and the industry has agreed a system of licensing on fair, reasonable and non-discriminatory terms (FRAND) to ensure no one can block the development of mobile communications.

The Micromax spokesperson said the Indian company was committed to negotiate a FRAND agreement. “Micromax is committed to negotiating a FRAND licence with Ericsson as has Ericsson undertaken to providing a FRAND licence to Micromax. Since the matter is pending before the honourable court, it would be incorrect for Micromax to make any further statements on the matter.”

Justice Manmohan of the Delhi High Court, in an interim order last week, asked Micromax to pay between 1.25% and 2% of the sale price of disputed devices and deposit the amount with the court.

The court also allowed Ericsson executives to join customs officials in inspecting Micromax’s consignments to check for devices violating its patents.

“Indian courts respond swiftly and with speed, if a strong case is made out. This case marks the arrival of big ticket patent litigation in India,” said Ericsson’s counsel Pratibha Singh. Executives close to Micromax, which accounts for about 5.5% of the 200 million mobile handsets sold annually in India, rejected the charges saying the Swedish company had failed to adhere to global commitments on providing its industry-essential patents to handset makers under so-called fair, reasonable and non-discriminatory (FRAND) terms.

Ericsson is learnt to be mulling legal action against a few other local cellphone companies as well. Local players selling low-cost handsets include Lava, Spice, Karbonn and Intex Technologies.

Prateek Panda

Prateek is the Founder of TheTechPanda. He's passionate about technology startups and entrepreneurship and enjoys speaking to new founders every day. Prateek has also been consistently regarded as one of the top marketing experts in the region.

Recent Posts

AI & automation in Indian digital marketing: A game-changer for ROI

In the ever-evolving world of digital marketing, a powerful shift is quietly transforming the way…

11 hours ago

Open Innovation Thrives on Chaos Collaboration and Unexpected Creativity

Philosophical at its core, open innovation is a socio-economic movement synonymous with globalization and decentralization…

12 hours ago

Striking a balance between digital independence & online safety for kids

Parenting is never an easy task. Ask any parent today about the biggest challenge, and…

1 day ago

Why everything is a subscription now & what it means for your wallet

In the last decade, purchasing and accessing products and services have undergone a radical transformation.…

4 days ago

Mumbai students win big at robotics championship in Chicago, headed to world finals

In an exceptional achievement, Mumbai-based high school robotics team Sigma 9692 has won the prestigious…

5 days ago

Indian gaming shifts from audience to creator “given India’s mobile-first gaming capabilities”

The Indian gaming industry is sitting on an industry explosion in the near future as…

5 days ago