Ericsson Facing Indian Investigation into Patent Royalty Rates

Ericsson is facing an investigation from Indian authorities over the patent royalty rates it charges a local mobile phone manufacturer.

Indian phone manufacturer, Micromax is reported to have filed a complaint about the rates being charged for standards essential patents, which are supposed to be offered on fair terms (FRAND) to licensees.

Citing a document from India’s anti-trust regulator, Foss Patents reported that Ericsson is now facing a formal investigations into its royalty demands relating to FRAND-pledged standard-essential patents

The document states that previous hearings between Ericsson and the regulator has not convinced it of Ericsson’s case and the formal investigation is warranted.

The main argument stems from percentage based royalty rates where the amount paid to Ericsson rises with the smartphone price. It says that charging different rates for the same technology is discriminatory.

On the web: Foss Patents