Court orders Micromax to pay royalty to Ericsson

By November 20th, 2014 AT 5:59 PM

Delhi High Court has asked domestic handset maker Micromax to pay a royalty that amounts up to 1% of the selling price of its devices to Ericsson for using the Swedish equipment maker’s patents on technologies that are essential to manufacture the products.

Micromax-new-logo

The interim order holds until December 31, 2015, the deadline set by the court to conclude the trial.

Ericsson had argued that it has similar payment arrangements with many handset makers globally and to support the claim, it furnished at least 26 licence agreements. The court, after perusing the royalty rates contained in those agreements, arrived on this rate, which both parties agreed upon, according to the order.

The handset manufacturer has also made clear that it has little operations overseas and when it plans to expand to other markets, it will negotiate royalty rates separately with Ericsson under global guidelines.

Also Read: Future Micromax smartphones to come with CyanogenMod pre-installed?

A year ago, Ericsson had sued Micromax over patent infringement and moved to Delhi High Court, demanding Rs 100 crores in damages. This marks the arrival of patent wars on the Indian shores, with similar feuds between tech giants including Samsung, Apple, Google and Microsoft already going in courtrooms around the world.

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

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SudhakarBranded ManMaharaniNandlal Recent comment authors
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Sudhakar
Sudhakar

No one even cared to comment here first. But others are behind me in favour of the third class companies (xiaomi, karbonn, micromax, g five, lava, xolo etc). What a shame !!!!

Sudhakar
Sudhakar

I have already said that micromax, lava, g five, karbonn, xolo etc are third class companies. Now it has been proved. Lol.

Nandlal
Nandlal

They are third class so they are using Ericsson’s technologies, isn’t it?

Sudhakar
Sudhakar

Using the technology but not paying for it !!!.

Branded Man
Branded Man

“Using the technology but not paying for it !!!” Who started the trend? Branded Company Sam

Maharani
Maharani

Rightly said, the so called branded companies are involved in more criminal activities like lobbying, tax evasion, patent infringement ,human rights,labor laws violation etc.

Branded Man
Branded Man

Earlier Max did it, later Micro which is following the business model of Max is doing the same

Of late unfortunately TT is becoming “Branded and Unbranded Comments” site only

Let’s bring back the old glory of TT please

Sudhakar
Sudhakar

The third class companies steal our personal data and already one such company (I think xiaomi) fell into trouble !!!!.

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