The Delhi High Court has instructed Oppo, a Chinese smartphone manufacturer, to clear all outstanding royalties owed to the research and development firm InterDigital within three months.
Issuing directives on February 21, the High Court warned that failure to fulfill the payment would empower InterDigital to seek an injunction against the sale of any further devices by Oppo, OnePlus, and Realme in India, citing non-compliance with court orders.
The specific amount, kept confidential by the Delhi High Court, is mandated to be deposited in an interest-bearing bank account. Additionally, the court has set a deadline for concluding the trial in this case by the end of 2024.
Justice Prathiba Singh, who presided over the case, stipulated the formation of a confidentiality club comprising designated experts, internal representatives from both parties, and their legal counsels. Only members of this club will be granted access to trial-related documents. Such confidentiality clubs are established to mitigate the risk of sensitive information, such as patents and financial data, being misused outside the litigation proceedings.
Background of the Case:
The ruling stems from a legal dispute initiated by InterDigital against mobile phone manufacturers, including Oppo, RealMe, and OnePlus, concerning the utilization of cellular technology (3G, 4G, 5G) and video coding technology in their devices.
InterDigital had engaged in negotiations with the Oppo Group for several years to secure a license agreement on Fair, Reasonable, and Non-Discriminatory (FRAND) terms for the use of its technology. When these negotiations failed, InterDigital commenced multiple litigations against the Oppo Group in various jurisdictions, including the UK, Germany, and India, in December 2021.
Oppo vs. Nokia:
In a related case, a two-judge bench of the Delhi High Court directed Oppo in July 2023 to deposit 23 percent of its India sales within four weeks to compensate Nokia for using its technology without proper authorization. The court arrived at the 23 percent figure based on Oppo’s sales in India, which account for approximately 23 percent of its global sales. Oppo had previously obtained a license from Nokia in 2018 to use some of its technology for a period of three years.
Subsequently, the Supreme Court upheld the Delhi High Court’s order.
InterDigital was represented in the case by the law firm Anand and Anand, with partner Pravin Anand serving as the company’s legal counsel.
