Ericsson Drags Intex To Court

  • Swedish-based mobile company Ericsson has accused Indian smartphone marker Intex of infringing on its patents and has filed a law suit against it.
  • The bone of contention is failure to negotiate a reasonable agreement over royalty rates and licensing terms on fair, reasonable and non-discriminatory (FRAND) terms for products compliant with GSM, EDGE, and UMTS/WCDMA standards.
  • While Intex has alleged that Ericsson has exploited its dominant position in the market by charging exorbitant rates for patents with no market alternative, Ericsson has deemed it as a reasonable attempt to protect its R&D investment and intellectual property.
  • Earlier Ericsson had dragged Micromax to court over alleged infringement of patent rights, the case is still in progress. If Ericsson wins either of these cases it will be a hard blow for low-cost business strategies of Intex and Micromax which operate on marginal profits.
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