Patent Infringement: Delhi HC Awards Rs217 Crore in Lost Profits Damages to Communication Components Antenna

Moneylife Digital Team 04 July 2024

Economy & Nation

The Delhi High Court (HC) has awarded Rs217 crore in lost profits damages to Communication Components Antenna Inc (CCAI) against Mobi Antenna Technologies (MAT) in a patent infringement case for an invention titled 'asymmetrical beams for spectrum efficiency'.

In 2010, CCAI filed the suit seeking a permanent injunction against MAT from manufacturing, selling, or importing any product infringing its suit patent into India.

CCAI presented a total addressable market (TAM) analysis to estimate damages, evaluating Indian operators, site numbers, subscriber growth, spectrum allocation, and bi-sector array antenna types. Based on sales data before the patent grant and trial completions, the analysis projected potential sales of at least 94,710 bi-sector antennas in India by the end of 2015.

On the first issue of whether the suit patent was liable to be revoked, the HC bench of justice Jyoti Singh observed that "By judgment dated 4 February 2022, Court decided the issue in favour of CCAI and against MAT and also proceeded ex parte against them as none was appearing on their behalf. Order sheets reveal that post this date, no steps were taken by MAT for setting aside the ex parte order and they abandoned the proceedings."

On the second issue as to whether MAT had infringed the suit patent, the HC finds that almost every feature of the suit patent (of CCAI) is practised in MAT's products, as shown in its brochures. Based on the evidence led by the expert witnesses of both parties, the bench asserts that "…MAT's products infringe Claim 1 and Claim 10 of IN'893 and issue No.(ii) is decided in favour of CCAI…"

Concerning issues of relief that CCAI is entitled to, the HC considered the market size estimated to be lost by CCAI, the retail price of antennas in various jurisdictions for different periods and the manufacturing price of antennas. It assessed total lost profits claimed by CCAI; however, noting the absence of any evidence of actual lost market share, the HC halved the figure arrived at by CCAI and awarded damages of Rs217 crore while holding CCAI to be entitled to actual costs.

The Delhi HC also issued a permanent injunction, preventing MAT from manufacturing, using, distributing, selling, offering for sale, or importing any product infringing CCAI's patent until 2027.

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