Lava International Ltd v. Telefonaktiebolaget LM Ericsson

This case involved a patent infringement dispute between Ericsson and Lava International. Ericsson, claiming to own Standard Essential Patents (SEPs) related to 2G and 3G mobile technology, accused Lava of infringement for manufacturing and selling mobile devices that used these patented technologies without a license. Lava countered by challenging the validity of Ericsson's patents and denying infringement. The court found one of Ericsson's eight asserted patents invalid due to it being a non-patentable algorithm and lacking novelty, but upheld the validity of the remaining seven patents. The court also concluded that Lava acted as an 'unwilling licensee' by failing to negotiate a FRAND license in good faith and that Lava's devices infringed Ericsson's valid SEPs. Consequently, the court awarded damages to Ericsson based on a FRAND royalty rate calculated on the net selling price of Lava's end products. Result: Ericsson's suit was partly allowed; one patent (IN 203034) was revoked, seven patents were held valid and infringed. Damages of Rs. 244,07,63,990/- plus 5% interest and costs were awarded to Ericsson.