Lava May Challenge Delhi High Court’s ₹244 Crore Penalty in Ericsson Patents Case

Indian smartphone maker Lava is considering appealing a Delhi High Court ruling that orders it to pay ₹244 crore plus interest to Ericsson for violating the telecom company’s 2G and 3G patents.

A spokesperson for Lava International stated, “Lava will explore all possible legal options, including the option to appeal the judgment. Lava remains committed to the ‘Make in India’ initiative by designing and manufacturing phones entirely within the country.”

Ericsson had accused Lava of using eight of its standard essential patents without a licensing agreement back in 2014. Similar cases were filed against other smartphone makers like Micromax, Intex, Xiaomi, and iBall. Some of these cases were resolved through licensing agreements.

In 2016, the Delhi High Court issued an interim injunction against Lava, preventing it from importing, exporting, manufacturing, and selling phones that used Ericsson’s patents and technology.

In its final ruling on March 28, the court sided with Ericsson, confirming the validity of seven out of eight patents. It ordered Lava to pay ₹244 crore plus 5% annual interest until compliance. Lava was granted relief in one patent case.

The court determined damages based on the licensing fees Ericsson would have received under a fair, reasonable, and non-discriminatory (FRAND) agreement, which is a standard practice where handset makers pay royalties for using essential patents.

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