The Delhi High Court has restrained Micromax's subsidiary firm YU Televentures from importing and selling mobile handsets and other devices that infringe Ericsson’s registered patents without paying royalty.
The launch of Micromax YU Yutopia, which was expected to be launched on December 7, has been postponed to December 17. The delay in company’s new flagship smartphone launch seems to be the Delhi High Court order that has issued bailable warrants against three of Micromax founders — Sumeet Kumar, Rahul Sharma and Vikas Jain — in a matter of contempt on its earlier order of November 2014 relating to payment of royalty to Swedish technology major Ericsson on the sale of its handsets.
The court order also restrained Micromax’s subsidiary firm YU Televentures from importing and selling mobile handsets and other devices that infringe Ericsson’s registered patents without paying royalty. YU Televentures founder Rahul Sharma tweeted about the updated launch date, “Hold your excitement, as we plan to announce something special with YUTOPIA. The most powerful phone now launches on 17th Dec.”
The spokesperson of the company has said that the launch of Micromax YU Yutopia has been delayed as there are two phone launches lined up and also December 17 happens to be the anniversary of the brand.
Last November, in a patent row between Ericsson and Micromax, the court had ordered the latter to pay royalty to the former that amounted to 1% of the selling price of its devices for using its patents on technologies that are essential to manufacture the products. The interim order holds until December 31, 2015, the deadline set by the court to conclude the trial.
However, Ericsson had recently approached the court saying Micromax was not paying the royalty by selling the handsets through a separate company floated by it and arguing that the order pertained to Micromax and not the entity through which the devices were being sold. This contention of Micromax was rejected by the court while issuing the bailable warrants.