Patent Damages in India

Strix Ltd. vs. Maharaja Appliances Ltd.

In a landmark decision in October 2023, the Delhi High Court has concluded a 24-year-old patent infringement case, directing Maharaja Appliances Ltd. to pay over INR 81 lakhs (US$100,000) in damages to Strix Ltd.

The judgment is significant for three reasons: it involves the computation of notional damages on a “reasonable royalty basis,” issues a decree after an interim injunction, and serves as a warning to defendants abandoning litigation midway. The case revolves around Strix’s ‘Liquid Heating Vessels’ patent allegedly used by Maharaja Appliances in electric kettles. The court dismissed challenges to patent validity and non-working claims, affirming infringement by comparing granted claims. Despite various defenses, including claims of changing suppliers due to quality issues, the court found in Strix’s favor, emphasizing that Maharaja had benefited from Strix’s patent. The damages were calculated using the defendant’s turnover and product sales, leading to the substantial awarded sum including estimated damages at INR 50 lakhs, additionally awarding INR 31.44 lakhs as actual costs. The case underscores the court’s determination to ensure justice in intellectual property disputes, even when parties attempt to evade responsibility mid-trial.

The court cited Sotefin SA v. Indraprastha Cancer Society and Research Centre when addressing infringement, holding that a comparison of the defendant’s product and the granted claims of the suit patent is sufficient to show infringement. In light of this, the court determined that the defendant’s product has every feature specified in the plaintiff’s suit patent.

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