Micromax, Ericsson Patent Tussle: All That You Need To Know

Ericsson has sued Indian mobile handset vendor Micromax in the nation's court, alleging infringement of eight of its patents without payment of any consideration. The dispute appears to be primarily over the royalty payments to be paid by Micromax to Ericsson for handsets it imports into India.

Ericsson said on Tuesday that for more than three years, the company has made numerous attempts to sign a license agreement with Micromax on fair, reasonable and non-discriminatory (FRAND) terms for products compliant with the GSM, EDGE, and UMTS/WCDMA standards.

Among the products involved in this lawsuit include select models of Micromax's Ninja handset series, the Canvas 2 handset series and its Android tablet Funbook Talk. Interestingly, the report also states that Ericsson is looking to file similar lawsuits against other local handset makers like Lava, Spice, Karbonn and Intex Technologies.

In an Interim order, Justice Manmohan of the Delhi High Court said that the two companies have agreed to negotiate a FRAND license agreement by April 9, 2013 and the hearing is scheduled to happen on April 22, 2013. Further, Micromax will intimate Ericsson whenever a new consignment arrives at the Customs department within 24 hours to allow them to inspect the consignment for possible infringement.

The handset manufacturer will also deposit an interim payment with the court, within five working days of the consignment arrival at the customs department.

For GSM phones and devices - 1.25% of sale price.

For GSM phones and devices with GPRS capabilities - 1.75% of sale price.

For GSM phones and devices with EDGE and GPRS capabilities - 2% of sale price.

For WCDMA and HSPA based phones and devices & tablets with calling capabilities - 2% of the sale price.

For Dongles and data cards - $2.50 (approx. Rs 135).

In a recent development, Micromax has issued a statement signaling willingness to abide by an interim order of the Delhi High Court directing the Indian company to pay royalties to Ericsson for the use of its patented technology.