"Supreme Court Rejects Oppo's Appeal Against Delhi High Court's Order for Security Payment in Nokia Patent Dispute
The Supreme Court, on Friday, dismissed an appeal lodged by Chinese smartphone manufacturer, Oppo, challenging a Delhi High Court directive. The order had mandated Oppo to provide a provisional security payment in favor of mobile manufacturer Nokia, amidst an ongoing patent infringement conflict [Guangdong Oppo Mobile Telecommunications Corporation Limited and Others v. Nokia Technologies OY].
Chief Justice of India DY Chandrachud, along with Justices JB Pardiwala and Manoj Misra, comprising a three-judge panel, declined to intervene in the High Court's decision, citing its well-reasoned basis.
The Court emphasized, "There exists no valid ground for this Court to intervene in the division bench's ruling. Although the division bench reversed the single-judge verdict, it pertains to an interim measure."
Nevertheless, the Court granted Oppo a brief extension until August 25 to adhere to the High Court's instructions.
Senior Advocates Kapil Sibal, Neeraj Kishan Kaul, Gopal Shankarnarayan, and advocates Saikrishna Rajagopal, Ruby Singh Ahuja, Siddharth Chopra, Deepti Sarin, Kritika Sachdeva, Julien George, Vasu Singh, Anu Paarcha, Arjun Gadhoke, Vivek Ayyagari, Avliit Kumar, Aniruddh Bhatia, and N Parvati, represented Oppo.
Senior Advocates Mukul Rohatgi, AM Singhvi, Gourab Banerji, and advocates Pravin Anand, Vaishali Mittal, and Siddhant Chamola appeared on behalf of Nokia.
In a development on July 3, the Delhi High Court issued an interim order in favor of Nokia in an ongoing patent infringement dispute against Oppo. The Court instructed Oppo to provide the security payment within a four-week timeframe.
While the exact amount remains undisclosed, the High Court clarified that it would equate to 23% of the 'last paid amount' under the 2018 license agreement between the two companies. This determination arises from India's contribution to almost a quarter (23%) of Oppo's global sales.
A division bench composed of Justices Manmohan and Saurabh Banerjee issued the ruling upon Nokia's appeal, overturning the single-judge decision that had favored Oppo in terms of interim relief.
In its judgment, the division bench noted, "Considering Oppo's status as a former licensee, its acknowledgment of Nokia's patent use in its phones, its expressed willingness to renew the 2018 Agreement, and to make interim payments as recently as June 2021, coupled with its initiation of proceedings in a Chinese court for determining a FRAND [Fair, Reasonable and Non-Discriminatory] rate, along with the consistent practices of this Court and Oppo's financial standing, the present verdict concludes that the contested judgment contradicts both factual circumstances and established legal principles. Consequently, the appeal is upheld, and the disputed order is annulled."
Consequently, the Court asserted a prima facie instance of infringement against Oppo and highlighted that the German bank guarantee serves as a 'diversion' tactic, as its effectiveness only transpires upon formalization of a licensing agreement."
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TAGS: Supreme Court Oppo Delhi High Court security payment patent infringement Nokia appeal dismissal Chinese smartphone manufacturer Chief Justice of India Justices intervention reasoned decision compliance extension senior advocates legal representation interim order undisclosed amount license agreement global sales division bench appeal outcome FRAND rate factual circumstances annulment prima facie infringement German bank guarantee licensing agreement.
