The Competition Commission of India is reportedly investigating claims that Sweden-based telecom firm Ericsson is demanding excessive royalties for its standard essential patents from an India-based mobile phone seller.
Micromax Informatics filed a complaint with the CCI against Ericsson claiming the company is charging royalties based on the cost of the mobile phones rather than the value of the patents used in those mobile phones, which would be in violation of FRAND licensing terms, the vendor said.
According to the regulator, such hold-ups can raise costs for the consumer and subvert innovation.
The complaint against Ericsson would seem to be a counter-case, as Ericsson filed a lawsuit against Micromax claiming the cell phone seller infringed on several of the telco’s patents without payment.
Ericsson previously sold its mobile phone selling business to a joint venture now owned by Sony; the company reportedly owns more than 30,000 patents around the globe.
Full Content: PC World
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