CCI by its order dated May 12, 2015 has initiated an investigation against M/s Telefonaktiebolaget L M Ericsson (Publ) & M/s Ericsson India Private Limited for alleged contravention of section 4 of the Act. The instant case was filed by Best IT World Pvt. Ltd. (iBall). Ericsson has been prima-facie considered to be a dominant entity owing to its position as the holder of the SEP for GSM and WCDMA mobile telephony standards. Practices adopted by Ericsson appear to be discriminatory as well as contrary to fair reasonable and non-discriminatory (FRAND) terms. Ericsson refused to share the details of SEPs with iBall which it considered violated, unless iBall signed an onerous non-disclosure agreement as drafted by Ericsson. Ericsson further acted contrary to the FRAND terms by imposing royalties linked with the cost of product being manufactured by the licensee. Charging of two different license fees per phone for use of the same technology, prima facie, appears to be discriminatory.
- Checklist Checklist: Reviewing a confidentiality agreement (receiving party) (USA)
- How-to guide How-to guide: Understanding antitrust and unfair trade practices law and your organization’s compliance obligations (USA)
- How-to guide How-to guide: How to draft an antitrust–unfair trade practices compliance program (USA)