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Informist, Monday, Jul. 14, 2025

 

NEW DELHI – The Delhi High Court has asked Lava International Ltd. to deposit INR 200.81 million as security with the court's registrar general on a patent infringement suit by Dolby International relating to audio coding technology, enhancing the functionality of devices such as mobile phones and tablets. Alternatively, the court has allowed Lava International to submit an unconditional bank guarantee of the same amount in favour of the registrar general.

 

Failure to deposit the amount would entitle Dolby International to move an application before the court for an interim injunction preventing Lava International from selling any more devices in India using the American company's patents, the court said. The court also ordered expeditious trial in the suit.

 

In 2018, Dolby International had offered Lava International the option of entering into a global fair, reasonable, non-discriminatory licensing agreement for the patents and engaged continuously with the Indian company. However, it claimed, Lava International engaged in dilatory tactics and never even came up with a counter-offer.

 

As Lava International refused to take up the required licence, or even negotiate in good faith, and continued to sell devices infringing on the American company's patents without paying any royalty, it got an unfair price advantage over licensees of Dolby International who are market competitors of the Indian company, the petitioner said. Consequently, Dolby International moved the high court seeking a permanent injunction against Lava International from using its patents. 

 

Lava International argued that five of the eight patents held by Dolby International had expired prior to institution of the suit by the petitioner. It said Dolby International cannot charge royalty and claim injunction for their use after the patents have expired. The claim charts presented by Dolby International lack clarity and fail to conclusively demonstrate essentiality, it further said. Thus, there was no reasonable basis to believe or presume that the patents held by Dolby International qualify as standard essential patents, the defendant company said.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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