Micromax to pay royalties to Ericsson

Micromax to pay royalties to EricssonIndian handset maker, Micromax will now have to pay royalties for each devices sold to Telefon AB L. M. Ericsson, after the Swedish company's sued the Indian company for not reaching a conclusive patent deal.

Ericsson has said that it had filed a lawsuit against Micromax as negotiations from the previous three years have not reached an agreement between the two companies on standards-essential partnership. Ericsson also said that Micromax has not agreed to license standards essential patents related to 3G, GSM and EDGE technologies that are owned by the company.

A Delhi court order has endorsed an interim agreement between the two companies and ordered Micromax to pay between 1.25 and 2 per cent of sale price as royalty per phone and tablet to Ericsson. Micromax as well as the Customs department are likely to inform Ericsson whenever a consignment of Micromax arrives so that Ericsson officials are able to inspect the devices. The goods will only be handed over to Micromax after Ericsson confirms that it does not have any objection to the release of these devices.

Ericsson had filed a patent lawsuit against Micromax for illegally using its patents and was claiming Rs 100 crore in damages from the Indian company.