Telefonaktiebolaget LM Ericsson v Intex Technologies
2015 SCC OnLine Delhi 848820152 min read
The case in brief30-second read
- Facts
- Ericsson held eight Indian patents declared essential to GSM/EDGE/3G standards (AMR codec technology) Every mobile phone using these standards necessarily infringed the patents.
- Issue
- Whether a SEP holder can obtain injunctive relief despite a FRAND commitment
- Held
- A FRAND commitment does not extinguish the right to seek injunction; it modifies the conditions under which injunction is appropriate.
- Principle
- Standard Essential Patent (SEP) holders must license on FRAND terms; refusal to license on FRAND terms may constitute abuse of dominant position.
Facts
- Ericsson held eight Indian patents declared essential to GSM/EDGE/3G standards (AMR codec technology)
- Every mobile phone using these standards necessarily infringed the patents
- Ericsson offered Intex a FRAND licence; Intex refused to engage or counter-offer
- Intex manufactured and sold millions of phones using the patented technology without any licence
- Ericsson filed suit seeking permanent injunction, damages, and an interim order for royalty deposit
- Intex raised defences of patent invalidity, FRAND abuse, and competition law violations
Issues
- Whether a SEP holder can obtain injunctive relief despite a FRAND commitment
- What obligations does a FRAND commitment impose on the patent holder and the implementer
- Whether interim royalty deposit orders are appropriate in SEP litigation
Held
- A FRAND commitment does not extinguish the right to seek injunction; it modifies the conditions under which injunction is appropriate
- Where the implementer is "unwilling" (refuses to negotiate, makes no counter-offer, does not engage), the SEP holder may seek interim relief
- Intex was an unwilling licensee: it ignored Ericsson's offers and continued infringing
- Court ordered Intex to deposit interim royalties (per device) pending trial
- The FRAND rate determination would occur at trial
Ratio decidendi
The FRAND framework creates reciprocal obligations: the SEP holder must offer licences on fair terms; the implementer must negotiate in good faith. A willing licensee is protected from injunction; an unwilling one is not. The test for willingness: does the implementer engage with the offer, make counter-proposals, and demonstrate readiness to take a licence on judicially determined terms? If not, standard patent remedies remain available to the SEP holder.
Exam use
How to use it in an answer
- Leading Indian authority on SEP/FRAND litigation and the "willing licensee" doctrine
- Cite in IPL questions on patents, standards, and competition law intersection
- Relevant for IT Law questions on telecommunications standards and patent licensing
- Compare with EU approach (Huawei v ZTE, CJEU 2015) for the global framework
Cite this
Citation
Telefonaktiebolaget LM Ericsson v Intex Technologies 2015 SCC OnLine Delhi 8488Reported: 2015 SCC OnLine Delhi 8488. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.