Micromax to pay royalty for using Ericsson patents

The smartphone patent war has finally reached India. For the last couple of years, we have been reading about Apple, HTC, Samsung, Motorola and almost every other smartphone giant fighting the patent wars in one or the other countries and now our home-grown Micromax has also become a part of it.

Telecom giant Ericsson had recently sued Micromax in Delhi High Court for infringing upon its 2G, 3G and EDGE patents, often known as FRAND patents and they can be licenced easily by paying agreed amount to the license holder. Ericsson was seeking over INR 100 crores in damages from Micromax.

Justice Manmohan of Delhi High Court directed Micromax to pay royalties to Ericsson until they get to a patent agreement by April 9.  Micromax will be paying around 1.25% – 2% of phone/ tablet sale price as royalty to the company, reports Times of India.

As a part of this interim arrangement, Ericsson will be informed by the customs department whenever a new consignment of Micromax devices reached India. The Swedish company will then inspect each consignment and give its nod for Micromax to take the possession.

“Micromax is committed to negotiating a FRAND licence with Ericsson as has Ericsson undertaken to providing a FRAND licence to Micromax. Since the matter is pending before the Hon’ble court it would be incorrect for Micromax to make any further statements on the matter,” Micromax said in a statement.

Ericsson was obviously happy with the order, and its counsel Pratibha Singh told Times of India – “This shows Indian courts can decide very complex patent litigation swiftly.”