Oppo vs InterDigital: Delhi HC asks Oppo to pay pending royalties or face sales ban

 

The Delhi High Court on Friday directed Chinese consumer electronics manufacturer Oppo to pay up all pending royalties to InterDigital or face a potential sales ban in India. InterDigital provides wireless and video technologies for mobile devices, networks, and services worldwide. It claimed mobile companies, including Oppo, OnePlus, and Realme, are utilising proprietary technology, protected by patents, without the requisite authorisation.

The plea filed by InterDigital stated that the Chinese handset makers had infringed on its 3G, 4G, and 5G Standard Essential Patents (SEPs).

The Delhi HC also imposed a penalty of Rs 500,000 ($6,000) on Oppo for delaying the proceedings. 

“The Defendants shall deposit a sum covering all past sales for the years 2021-22, 2022-23, 2023-24 (not disclosed), with the worthy Registrar General of this Court, within a period of three months. The said amount shall be kept in an interest-bearing fixed deposit on auto-renewal mode,” Justice Prathiba Singh said.

The court said that if the companies failed to do so, it would entitle InterDigital to move an application before the court seeking an injunction/restraint on the sale of any further devices by Oppo in India, due to non-compliance with court orders.

The court ordered that the trial should be completed by the end of this year or else Oppo will be liable to pay an additional sum.

"The trial in the suits shall now be concluded in 2024 itself. Should the trial not conclude for any reason, by December, 2024, the Defendants shall deposit an additional sum of with the worthy Registrar General by 31st March 2025," the bench said. 

The court has also set up a confidentiality club which will comprise designated experts, internal representatives of both the parties, and their lawyers. Only members of this club will have access to the documents exchanged during the trial.

InterDigital was negotiating with the Oppo group for a number of years for a license agreement on Fair, Reasonable and Non-Discriminatory (FRAND) terms. When the parties could not find common ground, InterDigital initiated a multi-jurisdictional campaign against the Oppo Group in the UK, Germany, and India in December 2021.

Last year, Oppo had been directed to pay up interim security in its dispute with Nokia. That case, however, was settled as part of a cross-licensing agreement reached between Nokia and Oppo last month. Nokia withdrew the case from the Delhi High Court.

Also read: Oppo F25 Pro 5G confirmed to launch in India on February 29, will be priced below Rs 25,000