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postedĀ 5 monthsĀ ago
By Ranjan Narula and Suvarna Pandey
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Facts
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Court Ruling:
The court ruling on a few important aspects concerning the ‘Pro-tem security deposit’ are covered below:
FURNISHING OF PRO-TEM SECURITY IS THE IMPLEMENTER’S OBLIGATION IN THE NEGOTIATION PHASE ITSELF
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TO BALANCE THE EQUITIES, THE INDIAN COURT HAS THE POWER TO PASS A PRO-TEM ORDER, IF THE FACTS SO WARRANT
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A PRO-TEM SECURITY ORDER CAN NOT BE LINKED TO AN INJUNCTION
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The Court allowed Nokia’s appeal to set aside the challenged order. The Court also directed the respondent to deposit the ‘last paid amount’ attributable to India i.e., Twenty Three percent (23%) of the last paid amount under the 2018 Agreement within four weeks.
Our commentĀ
The order establishes that SEP holders can ask the Court for the direction of a “Pro-tem security deposit” during the initial stages even when the matter is not dealt with in detail by the Court. On the point of prima facie infringement by Oppo, the Court importantly mentioned that an injunction can be secured, even if the infringement of one patent is established either prima facie or at the final stage. Thus, to restrain the sale of an infringing device, a Standard Essential Patent holder does not have to base its case on each of the thousands of patents that it owns and are used in the product; it can do so by showing that one or a handful of representative patents are infringed.
The fact that the Court has the power to pass a pro-tem order without an exhaustive exploration of merits is a welcoming development in favour of the SEP holders.
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