Long Standing Dispute between Micromax and Ericsson settled; Micromax takes global licence patent from Ericsson
Indian mobile manufacturing company, Micromax will take a global patent licence from the Swedish telecom gear maker, Ericsson. Under the licence, Micromax will pay royalties to Ericsson for every 2G and 3G set sold in India or abroad.
The two companies were engaged in a legal battle for the past five years before the Delhi High Court and negotiations led to the ultimate agreement between the parties early this year, ending all the ongoing and pending litigation disputes between the two.
The judgment pronounced by the Delhi High Court Single Judge Bench of Justice Manmohan clearly stated that the plaintiff (Ericsson) and defendant (Micromax) have entered into a Global Patent License Agreement dated 26th January, 2018 and in light of its execution, they have put an amicable end to their disputes. Further they have agreed to withdraw all their pending disputes including the suit in which this order was passed, counter-claims, contempt petitions as well as applications.
A total amount of Rs.89.8 crores (Rs. 82 Crores of Micromax and Rs. 7.8 Crores of Ericsson) submitted as bank guarantees to the Court at the initiation of the suit, have also been ordered to be released by the Court. Micromax also withdrew the complaint against Ericsson, which it had filed to the Competition Commission of India, alleging that Ericsson was indulging into unfair trade practices to obtain royalties.
History of the Dispute-
The legal disputes between the two companies started when in March 2013, Ericsson dragged Micromax to Court alleging that the latter had refused to enter into a licensing agreement covering its patented innovations across several wireless technology standards such as GSM, EDGE and 3G. It also demanded for Rs.100 crore as the compensation for the same. In the interim order, the Court had asked Micromax to deposit between 1.25% and 2% of the sale price of disputed devices with the court.
On the other hand, Micromax contested that Swedish company Ericsson was not providing its patents on fair, reasonable and nondiscriminatory or FRAND terms. Micromax, along with another Indian mobile manufacturing company Intex, further moved to the CCI alleging Ericsson for adopting unfair trade practices by demanding exorbitant royalties from them.
Micromax has reportedly written to the Competition Commission of India to withdraw its complaint.
Read the High Court order below: