Royalty Case: Oppo Moves SC Against HC Order That Directed It To Pay 23 Per Cent Of Its India Sales To Nokia

Oppo Mobile Telecommunications Corp, Oppo Mobile India, Realme Mobile Telecommunication (India), and others SC that the HC directive of July 3 has caused "significant hardship" to them.

Handset maker Oppo has moved Supreme Court against a High Court order that directed it to pay 23 per cent of its India sales under its 2018 License Agreement towards "royalty" for alleged infringement of Nokia's three standard essential patents (SEPs) in cellular technology, says a report by ET Telecom. The matter is said to be heard on Friday by a bench headed by Chief Justice of India DY Chandrachud. Oppo Mobile Telecommunications Corp, Oppo Mobile India, Realme Mobile Telecommunication (India), and others SC that the HC directive of July 3 has caused "significant hardship" to them. The judgement also overlooked the fact that Nokia Technologies' interests were protected by its bank guarantees (BGs), they added.

Nokia's three SEPs necessary to make cellular systems are 2G, 3G, 4G and 5G compliant. The 23 per cent figure was derived from Oppo's sales in the country which was around 23 per cent of its total global sales.

Oppo has alleged undue advantage to Nokia and stated that the obligation imposed on it to additionally secure Nokia in India, over and above the BGs submitted in furtherance to a global counteroffer, is "absolutely unfair", the ET report added.

Nokia, in its plea, said that after the expiry of the agreement, Oppo witnessed an unprecedented hike in India sales, where it sold around 77 million devices without paying anything to them as royalty, said another report. Nokia, in its plea, has also demanded a pro tem (temporary) deposit from Oppo of an amount either based on the latest counter-offer by the Chinese OEM for a global licence or an amount equivalent to the royalty paid under the 2018 agreement.