Micromax Sued by Ericsson for Rs. 100 Crore
Micromax, the Indian smartphone maker is again in the news. But it is for a negative reason this time. Ericsson, the Swedish telecom brand have accused Micromax over a patent infringement. The damage seeked by them is worth Rs 100 Crore. However, the Delhi High Court has responded in a swift manner in this regard. They’ve asked Micromax to pay a part of royality to Ericsson on every handset sold. The decision of court is the interim between two companies.
The report of a leading Indian Newspaper claims that Ericsson took the step of moving to court. They’ve also said that this action was taken against Micromax after a huge negotiation which lasted more than three years. The officials of Ericsson have claimed that the Indian maker Micromax kept on refusing the agreement proposal. The agreement was for some technology patent for GSM,EDGE owned by Ericsson.
Micromax -Ericsson : FRAND Agreement
Now the agreement FRAND (Fair, Reasonable and Non Discriminatory Terms) would mean that Micromax would be required to pay 1.25-2% of sale price of devices as royalty to Ericsson.
This could lead to a further delay in delivery of Micromax handsets in market. This is because High court has asked custom department to get every consignment of Micromax to be chcked by Ericsson officials before it is delivered.
This is the first case of this kind in country. We’ve already seen patent wars among companies including Apple and Samsung. But most of them were in the international arena. But this time, it is an Indian manufacturer.
The Micromax Officials haven’t given any verdict on the same. But if this agreement is taken upon, this could be a setback for the Indian manufacturer micromax. They’ve recently been into new for their best-selling device which is Micromax Canvas HD.