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Micromax to pay Rs 100 crore to Ericsson?

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Telecom networks and communications technologies giant Ericsson has finally got relief from the Delhi High Court in a case where it sought Rs 100 crore from Micromax for patent infringement. The Delhi High Court, as a part of interim agreement between the two, has asked Micromax to pay royalty against every device, it sells till April 9, the day the two companies are expected to finalise a patent deal.

 Micromax has been accused of leveraging some of the Ericsson's patented features related to Edge, 2G and 3G technologies. As a part of interim arrangement, there is FRAND (fair, reasonable, and non-discriminatory terms) license agreement that mandates Micromax to pay close to 2 per cent of their sale proceeds to Ericsson. According ot Wall Street Journal, the Indian company also has to pay a royalty of $2.50 to Ericsson for every internet dongle it sells.

As the dispute is yet to settle between the two firms, justice Manmohan asked Micromax to deposit the money in the court. The Customs department, in accordance with temporary settlement, is required to inform Ericsson whenever devices consignment from Micromax arrives that would allow former to inspect and in case of no objection, hand over the custody back to Micromax.

Micromax Informatics MD Rajesh Agarwal, however, declined to comment. Instead, the company issued statement that read: "Micromax is committed to negotiating a FRAND license with Ericsson. Since the matter is pending before the court it would be incorrect for Micromax to make any further statements on the matter".

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