Micromax ordered to pay Ericsson royalty

Indian manufacturer agrees to work out a royalty deal with the Swedish network equipment maker, which had filed a lawsuit--seeking US$18 million in damages--against the company over patent infringement.
Written by Mahesh Sharma, Correspondent

One of India's largest smartphone manufacturers, Micromax, has agreed to ink a royalty deal with Swedish network gear manufacturer Ericsson, which had filed suit against the company over patent infringement.

According to a report Thursday by Times of India, Micromax issued a statement revealing its intent to satisfy an interim order by the Delhi High Court instructing the Indian manufacturer to pay royalties to Ericsson for every smartphone and tablet it manufactures. 

The Swedish network equipment maker had filed suit against Micromax, seeking US$18 million in damages over claims Micromax had infringed its patents covering its 2G, 3G, and EDGE technology.

Ruling on the lawsuit, the Delhi High Court earlier this week told Micromax to work out a patent deal with Ericsson by April 9, stated an earlier report by the Times of India. While both companies agreed on a long-term arrangement, they will sign a one-month fair, reasonable, and non-discriminatory license agreement" (FRAND) which stipulates between 1.25 percent and 2 percent of the sale price per device be paid as royalty.

The agreement also states that a consignment of devices cannot pass through customs until an Ericsson representative has inspected and approved its release into the hands of Micromax.

According to the news report, Ericsson's advocate Pratibha Singh welcomed the quick HC interim order. "This shows Indian courts can decide very complex patent litigation swiftly," she said.

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