Delhi HC Asks Oppo, Vivo And Realme To Pay Up All Pending Royalties To InterDigital

The Delhi High Court has asked Chinese smartphone makers Oppo, OnePlus and Realme to pay up all pending royalties for using InterDigital’s patented technology with its registrar general within three months. 

Failure to deposit would allow InterDigital to seek court action to prohibit the defendants from selling additional devices in India, warned Justice Pratibha Singh, as per an ET report.

The order came on the two suits filed by the US technology research and development firm seeking enforcement of patent rights involving five standard essential patents (SEPs) that relate to wireless communication technology standards by InterDigital Technology Corporation and its associated companies (InterDigital) against Oppo, OnePlus Technology, and Realme Mobile Telecommunication.

Considering the financial circumstances of Oppo, OnePlus, and Realme, Justice Singh emphasised the need to balance the interests of both parties. The defendants were instructed to secure InterDigital with a sum reflecting the latest bank guarantee submitted in a German court.

Noting that “this proportion also aligns with the defendants’ approximate share of global sales attributed to India”, the court accordingly directed them to deposit a sum covering all past sales for the years 2021-24 with the HC Registrar General within three months.

Justice Singh directed that the specified amount should be maintained in an interest-bearing fixed deposit set on auto-renewal. 

Additionally, the judge ordered the establishment of a confidentiality club to facilitate the exchange of sensitive information between the parties. 

As a consequence of the conduct and significant delays attributed to the Chinese firms, a cost of INR 5 lakh was imposed by the court.

The HC noted that since November 2022, the defendants had continued to sell their products in India and generate profits.

“Despite claiming to have incurred losses in India, their sales, amounting to lakhs of crores of rupees, have led to investigations by various authorities. To date, the defendants have been in negotiations with InterDigital for almost 10 years.” 

As per the report, the court expressed its inability to comprehend why the parties couldn’t reach an agreement. Notably, the Munich Regional Court I in Germany recently ruled that the defendants were infringing, leading to an injunction.

InterDigital contends that it is among the top four wireless SEP innovators globally, possessing various SEPs related to 3G, 4G, and 5G standards crucial for implementation. 

The Chinese smartphone manufacturers argued that lacking prima facie findings by the court, InterDigital should only be secured through bank guarantees, and no pro-tem deposit should be mandated.

Given Oppo and others’ substantial market share in India and the sale of devices compliant with 3G, 4G, and 5G standards since 2014, InterDigital urged them to acquire licenses and pay rightful royalties.

The development comes at a time when BBK Group has forged partnerships with Indian manufacturers Dixon Technologies and Karbonn Group to produce its Oppo, Vivo, and Realme smartphones.

In the fiscal year 2022-23, BBK Group retained its lead in the Indian smartphone market, earning revenue of INR 81,870 Cr.