Ericsson Faces Investigation In India Over Patent Row

Ericsson faces an antitrust investigation in India over claims it is abusing its dominant position in the networking equipment industry by charging excessive amounts for the use of its patents.

In March, Ericsson sued local handset manufacturer Miromax, alleging that it had infringed the Swedish firm’s patents and was refusing to license the intellectual property on fair, reasonable and non-discriminatory (FRAND) terms.

Ericsson India

Miromax responded by bringing a complaint to the Competition Commission of India (CCI), accusing Ericsson of wanting to charge excessive royalties for the use of its patents, which relate to GSM technology.

The CCI has now decided that the matter warrants further investigation and Ericsson says it will work with the authorities going forward.

“The CCI has now decided to refer the case to the Director General for an in-depth investigation,” explains a company spokesperson. “Ericsson will fully cooperate with the authority in this investigation to reach a fair and reasonable conclusion.”

Ericsson is one of a number of European companies set to benefit from the rollout of 4G in China as it has secured ten percent of a £2 billion contract to build China Telecom’s 4G network.

Earlier this year, Ericsson and STMicro shut down their loss-making chip joint-venture, with Ericsson moving 1,800 employees to other parts of its business. It had already sold its share in the Sony Ericsson smartphone manufacturing joint-venture back to its Japanese partner.

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