Dolby Initiates Patent Infringement Suit Against Lava Over Audio Coding SEPs in Delhi

Dolby Laboratories has commenced legal proceedings against Indian smartphone maker Lava at the Delhi High Court, accusing the company of infringing eight of its advanced audio coding (AAC) standard-essential patents (SEPs). The lawsuit was filed on Monday, April 29, 2024, marking a significant development in the ongoing patent disputes involving Lava.

This legal action follows closely on the heels of a landmark victory by Ericsson earlier this year, when the telecom giant was awarded record SEP damages amounting to ₹244 crores (approximately $29 million) against Lava in March 2024. While Ericsson’s case focused on telecommunications patents, Dolby’s suit centers on its AAC technology patents.

Dolby’s complaint details infringement of eight patents that are essential to the AAC standard. These patents are licensed both bilaterally by Dolby and through the patent pool operator Via LA Licensing. Notably, five of the eight patents at issue expired during the course of Dolby’s licensing negotiations with Lava. Despite this, Dolby asserts entitlement to relief based on profits Lava earned while allegedly infringing the patents.

Several prominent smartphone manufacturers, including Oppo, Vivo, and Reliance, have already secured licenses from Dolby for its AAC technology, underscoring the technology’s widespread adoption in the industry.

Dolby and Lava have been engaged in licensing discussions for approximately six years but have yet to reach an agreement on licensing terms. Concurrently, Lava has been in contact with Via LA Licensing to obtain a license for the AAC patents managed by the pool.

In its petition, Dolby has requested the Delhi High Court to safeguard its interests by ordering Lava to provide an interim security deposit or face an interim injunction to prevent ongoing infringement.

The case was first heard on May 1, 2024. During the hearing, Lava indicated its preference to resolve the dispute amicably, signaling potential for settlement discussions.

This lawsuit adds to a growing portfolio of SEP enforcement actions in India, reflecting the increasing assertiveness of patent holders in protecting their intellectual property rights within the country’s expanding smartphone market.

Dolby’s move underscores the strategic importance of AAC technology and the value of SEPs in the competitive mobile device sector. The outcome of this case may influence future licensing negotiations and enforcement strategies involving standard-essential patents in India.

Legal observers will be closely monitoring developments in this case, as it may set precedents regarding enforcement of expired patents and the calculation of damages based on past profits.

The Delhi High Court’s handling of this matter will be pivotal in shaping the landscape for SEP disputes in India, particularly in the audio and telecommunications domains.