The Delhi HC said on Wednesday that Micromax-owned Yu Televentures was found to be violating Ericsson’s patents. Earlier in 2014, Micromax was slapped with a fine for violating patents; the ruling now applies to Yu Telelventures as well, said the court.
Swedish mobile manufacturer Ericsson filed a suit against Micromax in 2014 for using its patents while manufacturing Micromax phones without permission. The court ruled in favor of Ericsson in 2014; Micrormax agreed to pay Rs 55 crore in fines to Ericsson.
Ericsson’s recent suit said that that Yu Televentures was a subsidiary of Micromax, while Yu argued that it was a separate legal identity under the law and the previous injunction did not apply to it.
After rejecting the arguments, Justice Nazmi Waziri on Wednesday issued a bailable warrant against Sumeet Kumar, Rahul Sharma and Vikas Jain—common directors and principal promoters of Yu Televentures and Micromax.
“These were common directors who were well aware of the import of the operative injunction order and tried to circumvent it under the garb of a subsidiary company,” said Justice Waziri.
The order further pointed out that the 2014 injunction applied only for Ericsson’s patents and the non-payment of royalty; the contention of Yu Televentures being a subsidiary of Micromax was not sustained.
“They have been dishonest while saying that Yu Televentures was not a wholly-owned subsidiary of Micromax as they had themselves stated this in their reply,” said Ericsson’s Advocate Neeraj Kishan Kaul.