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Micromax agrees to take patent license from Ericsson after five year long legal battle

March 14, 2018

Micromax Informatics has agreed to take a global patent licence from Ericsson, under which it will pay royalties on every phone sold in India and overseas using 2G or 3G technology.

The agreement was signed after mutual negotiations between the companies that had been engaged in a five-year long legal battle in the Delhi High Court. The development also put an end to all related and pending disputes between the two companies.

Bank guarantees totalling more than Rs 820 million has also been ordered by the court to be released to Micromax and its subsidiary Yu Televentures. Release of guarantee of nearly Rs 78 million to Ericsson has also been ordered.

Micromax has also written to the Competition Commission of India (CCI), withdrawing its complaint against unfair practices used by Ericsson to obtain royalties.

In March 2013, Ericsson had taken Micromax to court and claimed approximately Rs 1 billion in damages. Ericsson had stated that the Indian handset maker had refused to enter into a licensing agreement regarding its patented innovations across several wireless technology standards such as GSM, EDGE and 3G.

Micromax, had contested the claims citing that Ericsson was not providing its patents on reasonable and non-discriminatory terms.


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