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Delhi HC orders Lava to deposit Rs 20.81 cr in ongoing patent dispute with Dolby
The court has asked Lava International to provisionally pay sum as security or provide a bank guarantee to cover past sales from 2019-2024, following a patent infringement suit filed by Dolby International.
Dolby has alleged that Lava used its audio coding technology without a license, amid the on-goining in the long-standing patent infringement dispute.
In a significant development in the long-standing patent infringement dispute between Dolby and Lava International, the Delhi High Court has directed the Indian smartphone maker to deposit Rs 20.81 crore as security covering all past sales from 2019 until 2024 with the court’s registrar general. The court has permitted Lava to submit an unconditional bank guarantee of the same amount from a local bank in favour of its registrar general within eight weeks.
The interim measure comes as the legal battle intensifies over Dolby’s allegations that Lava used its proprietary audio compression technologies without proper licensing.
The case stems from Dolby’s contention that Lava continued to embed Dolby’s patented technologies, used to enhance sound quality in consumer electronics, into its devices even after its licensing agreement expired in December 2020.
According to Dolby, Lava failed to secure a renewal of its license and did not respond to multiple communications regarding compliance and audits, despite continuing to manufacture and sell devices equipped with Dolby technology.
A failure to deposit the amount of the bank guarantee, as per the terms, would entitle Dolby to move an application before the Court for seeking an interim injunction/restraint order against Lava from selling any further devices in India that implement the suit patents.
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