Oppo Approaches Supreme Court Challenging Delhi High Court's Order Favouring Nokia in Patent Infringement Matter

Oppo, a manufacturer of mobile phones, has appealed a Delhi High Court decision to the Supreme Court. The order calls for Oppo to deliver a security payment about the India portion of the most recent licence fee paid to Nokia in connection with a pending patent infringement lawsuit.

The matter is scheduled to be heard by Chief Justice of India D Y Chandrachud's bench today, August 4th.

The security payment will account for 23% of the total amount Oppo must pay under the 2018 Licence Agreement, albeit the exact amount is still secret. The Indian market for Oppo, which accounts for 23% of its worldwide sales, is reflected in this ratio.

Oppo's status as an ex-licensee, its admission of using Nokia's patents, its willingness to renew the 2018 Agreement and make interim payments until June 2021, its request to a Chinese court to determine a Fair, Reasonable, and Non-Discriminatory (FRAND) rate, as well as Oppo's financial situation were all taken into account in the Delhi High Court's order, dated July 3rd, 2023.

Nokia's appeal against a decision rendered on November 17th of the previous year that denied Nokia's application catalysed the conflict. Depending on Oppo's most recent counter-offer for a worldwide licence of Nokia's Standard Essential Patents portfolio or an amount equal to the royalty paid under the 2018 Agreement, Nokia had asked Oppo to deposit an interim security. This amount reflected Oppo's global sales proportion to the number of smartphones it sold in India.

Nokia notified the court that, under the 2018 agreement, Oppo obtained a licence for Nokia's Standard Essential Patents in 2018, valid for three years and expiring on June 30th, 2021. The arrangement acted as a cross-licensing agreement for the parties' respective patents.

Nokia argued that patents about 5G technologies were not included in the 2018 Agreement. Any new licence cost is likely to be significantly higher given that 52% of Oppo's sales in India and 64% of its global sales are 5G smartphones.

Nokia argued that Oppo saw a notable increase in smartphone sales after the 2018 Agreement expired. Oppo sold almost 77 million handsets in India between July 2021 and December 2022 without giving Nokia royalties. Oppo refused to negotiate a new licence arrangement despite Nokia's efforts to start conversations on the technical and financial fronts.

Nokia filed a petition with the Delhi High Court after Oppo rejected its offer, claiming that Oppo had violated three Standard Essential Patents. The alleged violation results from Oppo's unauthorised production and distribution of mobile phones that adhere to 2G, 3G, 4G, and 5G telecommunication standards.