14/07/2023
The Ld. Division Bench of the Hon'ble Delhi High Court on 13.07.2023 pronounced the judgment in the Ericsson v. CCI batch matters, which raised pertinent questions relating to the jurisdiction of the CCI in cases relating to exercise of rights by a patentee under the Patents Act, 1970.
In this landmark and highly anticipated verdict, the Hon’ble High Court agreeing with Ericsson’s case observed that the Patents Act is a complete code in itself which contains sufficient safeguards to deal with instances of abuse of rights by a patentee.
In observing that the Patents Act will prevail over the Competition Act, being a special statute over the latter, the Hon'ble Court held that regard must be had to (i) subject matter in question, (ii) the intendment of the statutes and (iii) relevant provisions. Addressing the same, it was observed that the dispute between Ericsson and private respondents like Intex, Micromax and i-Ball, pertained to alleged anti-competitive and abusive conduct of a patentee in exercise of its statutory rights granted under the Patents Act. Since the genesis of the dispute before the CCI was arising out of the Patents Act, it was held that the issues raised do not fall within the ambit of CCI’s jurisdiction.
The Bench also held that the inter-se settlements and ex*****on of licenses between the parties, also oust the jurisdiction of the CCI as the very genesis of the complaint filed before it does not survive when the parties enter a settlement amongst themselves.
Accordingly, the decision of the Ld. Single Judge was set aside and all proceedings initiated by the CCI against Ericsson have been quashed.
The judgment brings in the much needed clarity on the issue of alleged overlap and repugnancy between the Patents Act and the Competition Act and clarifies that none exists in the facts of the present case. It was clarified by the Hon'ble Court that both acts operate within their own separate spheres.
Singh & Singh Law Firm represented TLM Ericsson (Publ) in the batch appeal and was led by SAYA CHOUDHARY, Partner Ashutosh Kumar, Partner, along with Vrinda Bagaria, Principal Associate, Vinod C., Principal Associate and Radhika Pareva, Associate.
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