Mobile phone manufacturer Oppo has challenged in the Supreme Court a Delhi High Court order asking it to deposit 23 percent of its India sales. The case is likely to come up before the bench of Chief Justice of India DY Chandrachud on August 4.
A division bench of the High Court in July passed the order after it found that the Chinese smartphone maker was using Nokia's technology without the requisite consent. It arrived at the 23 percent figure after noting that Oppo's sales in India accounted for around 23 percent of its global sales.
Oppo secured a licence from Nokia in 2018 for using some of the Finnish telecom gear company’s technology for three years. Oppo had also made advance payments. The agreement, however, did not cover the use of patents relating to 5G standards. Considering that 5G devices account for 52 percent of Oppo's sales in India, the company would have had to pay a substantially higher amount to Nokia.
Nokia alleged that after the expiry of the agreement, Oppo
witnessed an unprecedented increase in sale, selling around 77 million devices in India without paying a single rupee in royalty.
The Finnish firm argued that it offered to discuss the renewal of the agreement but Oppo refused to negotiate, forcing it to moved the high court for infringement of its patent for 2G, 3G, 4G and 5G devices in India.
Nokia sought a pro tem (temporary) deposit from Oppo of an amount either based on the latest counter offer by the Chinese firm for a global licence or an amount equivalent to the royalty paid under the 2018 agreement.
A single judge of the High Court dismissed the application seeking interim deposit, saying the court did not have the power to do so without going into the merits of the case. Nokia then appealed against the order before a two-judge bench of the court.
A division bench set aside the order and asked Oppo to deposit 23 percent of its India sales. To balance the equities in such cases, the court has the power to pass an order directing Oppo to make a temporary deposit without going into the merits of the case, it said.
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