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Ericsson files Rs 100 cr suit on Micromax

New Delhi, Mar 26 () : Patent suit for Rs 100 crore has been filed by Ericsson, the world’s largest mobile network infrastructure player. Micromax, the Indian company faces this suit from the Sweden-based network equipment provider which claims that for past three years it has been evading getting licensing agreements for patented applications. This is the biggest patent suit filed in Indian telecom sector.

Ericsson says it moved the Delhi High Court claiming about Rs 100 crore in damages, saying it was after three years after talks that they were taking legal action after Micromax failed to sign a licence agreement on ‘standards-essential’ patents that were being used in 3G, Edge and GSM.

Micromax has been told to deposit 1.25-2% of the sale price of the devices that Ericsson had dispute with the court. Ericsson also got court order to go along with custom officials during inspection of Micromax devices for patent violation.

Micromax claims is sought to seek Frand terms which is known as fair reasonable non-discriminatory for the handsets for the devices, a practice acknowledged globally. Ericsson did not want to stick to it. Micromax has a market share of 5.5% of the 200 million mobiles sold every year in India.

Micromax points out that Ericsson has filed a similar suit on Samsung in South Korea and said that after they quit the tie up with Sony its presence in mobile market was negligible due to which it was filing illogical cases. The case if goes in favour of Ericsson, other players Karbonn, Lava, Intex and Spice could be in trouble.

Funbook Talk, Ninja and Canvas2 series of Micromax are in the dock. Micromax points out that court has asked both parties to enter into a Frand agreement before the next hearing.

Global giants Apple, Samsung, HTC and Finland’s Nokia have fought patent infringements in various parts of the world; in this case unlike the earlier ones where they were technology owners, here Micromax does not own the technology.