New Delhi: The smartphone patent wars have so far managed to steer clear of Indian courts, but acting on a suit filed by Swedish telecom giant Ericsson, the Delhi High Court has told Micromax to pay royalties on every device it sells as part of an interim arrangement. The two companies are expected to finalise a patent deal by April 9.
The HC agreed to an interim arrangement between the two companies, which would mean Micromax would have to pay royalties for using features that relate to the Ericsson's 2G, 3G and EDGE patents. Micromax will have to pay anywhere between 1.25 per cent to 2 per cent of sale price as royalty for every phone and tablet it sells. Ericsson had approached the HC seeking over Rs 100 crore in damages from Micromax, one of the leading smartphone makers in the country.
As per the terms of the arrangement, the money for the royalties will have to be deposited in the court until the dispute is settled. The technical term for such an arrangement is FRAND (fair, reasonable, and non-discriminatory terms) license agreement. The FRAND agreement between the companies will be in effect for one month.
The interim agreement says that Gurgaon-based Micromax and the Customs department would have to intimate the Swedish company when a consignment of devices arrives to India so that Ericsson's representative can inspect it. Once Ericsson conducts the inspection and clears the consignment for release, it will be immediately handed over to Micromax. Upon sale, Micromax has to deposit the percentage of royalty in the court.
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