LI Network
Published on: 5 August 2023 at 16:47 IST
The Supreme Court, in a recent ruling, has rejected the appeal filed by Chinese smartphone manufacturer Oppo challenging the Delhi High Court’s order.
The High Court had directed Oppo to furnish a pro-tem security payment to mobile manufacturer Nokia in a patent infringement dispute between the two companies [Guangdong Oppo Mobile Telecommunications Corporation Limited and Others v. Nokia Technologies OY].
The three-judge bench comprising Chief Justice of India DY Chandrachud, Justices JB Pardiwala, and Manoj Misra, declined to interfere with the High Court’s decision, stating that it was a reasoned order.
Despite the division bench overturning the single-judge’s order, the Supreme Court recognized it as an interlocutory order and found no grounds for intervention.
However, the Supreme Court granted a short extension to Oppo until August 25 to comply with the directions issued by the Delhi High Court.
Representing Oppo in the case were Senior Advocates Kapil Sibal, Neeraj Kishan Kaul, Gopal Shankarnarayan, and a team of advocates.
On the other hand, Senior Advocates Mukul Rohatgi, AM Singhvi, Gourab Banerji, along with advocates Pravin Anand, Vaishali Mittal, and Siddhant Chamola, appeared for Nokia.
Earlier, on July 3, the Delhi High Court had issued an interim order in favor of Nokia in the patent infringement dispute with Oppo.
The High Court instructed Oppo to furnish a security payment within four weeks, and the amount, although undisclosed, was determined to be 23% of the ‘last paid amount’ under the 2018 license agreement between the two companies.
This calculation was based on India accounting for nearly 23% of Oppo’s worldwide sales.
The division bench of Justices Manmohan and Saurabh Banerjee had set aside the single-judge’s judgment and ruled in favor of Nokia for the interim relief sought.
The High Court found a prima facie case of infringement against Oppo and remarked that the German bank guarantee was merely a ‘smoke screen’ and would only come into effect after a license agreement is signed.
The court considered Oppo’s status as an ex-licensee, its admission of using Nokia’s patents, and its willingness to renew the 2018 Agreement and make interim payments as late as June 2021, among other factors, in reaching its decision.
