[This post is authored by SpicyIP intern Sushant Jaiswal. Sushant is a third-year law student at the National Law School of India University, Bengaluru, with a keen interest in intellectual property law and legal research.]
In a recent turn of events, Koninklijke Philips N.V. and Vivo Mobile Communication Co. Ltd. decided to settle their 5-year-old SEP dispute over 3G and 4G technologies. The two sides confirmed before Justice Amit Bansal of the Delhi High Court that they had entered into a settlement.
The dispute arose when Philips filed a patent infringement suit in 2020 before the Delhi High Court against Vivo, alleging unauthorized use of its five SEPs related to 3G and 4G technologies. To support its claims, Philips produced several Vivo phones, including the V17 Pro, V15 Pro, and SI phones (pdf). Vivo’s defense strategy was straightforward. They challenged the essentiality of the suit patents and alleged that the rates offered were not on FRAND terms. They also argued that the technology of the suit patent resides in the chipset, which it purchased from Qualcomm (pdf). We have previously seen these defences being unsuccessfully raised in other SEP disputes. The matter was set for trial, with issues framed and a confidentiality club established by the High Court (see here).
Then came the twist. Irrespective of all the procedural dancing and legal maneuvering, the parties submitted a joint application on 9th April 2025, asserting that they had executed a licensing agreement. While the details have not been disclosed, the Court examined the deal and disposed of both the principal suit as well as Vivo’s counterclaim. As per the order, the terms of the settlement involved the return of the phones, the destruction of confidential records, and the lifting of restrictions on Vivo’s property, effectively restoring the status quo.
Such settlement deals are not novel in the world of tech. Resolution of SEP disputes via negotiated settlements rather than prolonged litigation is now a common practice. For example, in January 2024 Philips settled its SEP dispute with Oppo Mobile Telecommunications. Likewise, Finnish tech firm Nokia signed a patent-licensing deal with Oppo, thereby closing all pending patent cases between the two firms in all jurisdictions, including India, in January last year. Interestingly, as pointed out in IP Fray by Olivia Sophie Rafferty, after this deal, Vivo has no other SEP litigation against it.
This development makes one wonder if the stern approach of the Delhi High Court, in the Lava-Ericsson judgement, towards implementers swayed the parties to explore the option to settle the dispute out of court. Regardless, the news could not have come at a better time for Vivo, as in the last quarter of 2024, it reportedly became the top-selling smartphone company in the country.