In a setback to Chinese smartphone maker Oppo, the Supreme Court on Friday refused to interfere with the Delhi High Court judgment that asked it to deposit 23% of the amount paid under a 2018 licence agreement towards “royalty” for alleged infringement of Nokia Technologies’ three standard essential patents (SEPs) in cellular Technology. Oppo has been accused of using the patents despite expiry of the three-year agreement.
The apex court on Friday asked the Chinese phone manufacturer to comply with HC’s directions within three weeks. And also asked it to give an undertaking to the SC in 10 days.
The dispute began when Nokia moved the Delhi HC, alleging that Oppo had continued to use its patented technology even after the expiration of a three-year license agreement in 2021.
The SC asserted that there was no justification for intervening at this stage and has allowed Oppo three more weeks to comply with the Delhi HC’s order to deposit the specified amount from its India sales.
As per the source, initially, a single judge of the High Court dismissed Nokia’s plea seeking interim deposit, saying the court did not have the power to do so without going into the merits of the case. Nokia appealed again against the order before a two-judge bench of the court.
Then the HC division bench asked Oppo to deposit 23 per cent of its India sales. Oppo, in its plea before the apex court, said the HC order “altered the level playing field”.
It further caused significant hardship to them as it overlooked the fact that the Nokia Technologies’ interest was secured by its bank guarantees (BGs).
Alleging “undue advantage” to Nokia, Oppo said that the obligation imposed on it to additionally secure Nokia in India, over and above the BGs submitted in furtherance to a global counteroffer, is “absolutely unfair”.
