Delhi High Court orders Lava to pay Rs 20.03 crore in Dolby patents ongoing dispute

New Delhi: The Delhi High Court has directed Indian smartphone maker Lava International to pay Rs 20.03 crore to Dolby International as compensation for infringing on the latter’s standard essential patents (SEPs) related to advanced audio coding (AAC) technology. 

According to news reports, the court found that Lava acted in bad faith during licensing negotiations with Dolby, failing to secure a fair, reasonable, and non-discriminatory (FRAND) agreement despite years of discussions. 

As per reports, Dolby had offered Lava a pool-licensing deal through Via LA Licensing, but the court found that Lava continued to incorporate Dolby’s technologies in its devices without securing the required licences, leading to a breach of intellectual property rights.

Lava has been ordered to deposit the sum with the court’s Registrar General within eight weeks. Failure to comply could lead Dolby to seek an interim injunction, potentially halting Lava’s sales of infringing devices in India.

This case stems from a lawsuit filed by Dolby in May 2024, alleging infringement of eight AAC SEPs. While five of these patents have expired, the court upheld Dolby’s claim for past royalties.