The Delhi high Court has asked Indian smartphone manufacturer Micromax to pay a royalty to Ericsson. The royalty amounts to a whopping one per cent of the selling price of the devices.
According to a report on the Economic Times, the Gurgaon-based company is using Swedish equipment maker Ericsson’s patents on technologies that are essential to manufacture products.
Micromax has been given an interim deadline by the court till December 31, 2015.
According to the report, Micromax would have to cough out almost Rs 10 crore every month.
A senior executive at Micromax told the Economic times that the estimated royalty payment will account to almost 20 per cent of their profits.
Ericsson had sued Micromax last year and claiming damages amounting to Rs 100 crore.
