Delhi High Court has issued orders to Micromax to pay a royalty that amounts to 1% of the selling price of its devices to Ericsson for using the equipment maker’s patents on technologies that are essential to manufacture the products.
The court has given deadline to pay the royalty till December 2015. As part of the order Micromax may have to shell out about Rs.10 crore every month till that time, said an industry executive. In a major setback, the company’s low cost business strategy could be at stake.
Last year Ericsson sued Micromax claiming Rs. 100 crore as damages over patent infringement.