The Delhi High Court has directed Indian mobile phone brand Lava to compensate Swedish telecommunications giant Ericsson with over Rs 244 crore for infringing upon its 2G and 3G patents. Justice Amit Bansal, in a March 28 order, upheld the validity of seven out of eight Standard Essential Patents (SEPs) claimed by Ericsson.
These patents are said to encompass key technologies including AMR speech codec, EDGE, and 3G.
Post the ruling, Lava is mandated to pay damages of Rs 244 crores along with 5 percent interest per annum until the time it makes the full payment. The company must also bear the additional court fees.
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Moreover, the court has granted Ericsson’s claim for taxed costs and partially revoked Lava’s suit patent. It dismissed Lava’s arguments against the validity and essentiality of Ericsson’s patents, declaring that Lava did not negotiate the licensing agreements in good faith.
Highlighting the significance of fair, reasonable, and non-discriminatory (FRAND) licensing terms, the court rejected Lava’s proposal to calculate royalties based on chipset value, favouring end-product level royalties in the telecom sector.
The ruling comes at a time when Lava is reportedly planning to raise Rs 500 crore through either private equity investment, a public listing, or a combination of both.
