CS COMM--434/2016. Case: TELEFONAKTIEBOLAGET LM ERICSSON(PUBL)..... Vs. XIAOMI TECHNOLOGY & ORS. High Court of Delhi (India)

Case NumberCS COMM--434/2016
CitationNA
Judgement DateOctober 24, 2017
CourtHigh Court of Delhi (India)

$~

* IN THE HIGH COURT OF DELHI AT NEW DELHI

% Reserved on: 09th October, 2017

Pronounced on: 24th October, 2017

+ CS(COMM) 434/2016, CC Nos.60-65/2015, CC (O) No.11/2015

IANos.24580-81/2014, 11784/2015, 17428/2015, 25545/2015, 9253/2016

TELEFONAKTIEBOLAGET LM ERICSSON(PUBL)..... Plaintiff

Through : Mr. R. Virmani and Mr. Sandeep Sethi,

Senior Advocates with Mr. Ashutosh Kumar, Ms. Saya Chaudhary Kapoor, Mr. Adithya Jayaraj, Mr. Prateek Sehrawat, Mr. Devanshu Khanna & Mrs. Karnika Kanwar & Mr. Ujjwal Sinha, Advocates.

versus

XIAOMI TECHNOLOGY & ORS ..... Defendants

Through : Mr. Saikrishna Rajagopal with Ms. Julin

George, Ms. Raxchel Mamatha, Ms. Anu Paarcha, Mr. Yatinder Mr.Yashwant Prasad & Ms. Nilofar Abbasar, Advocates for D-1.

Ms. Ria Anand, Advocate for D-3.

CORAM:

HON'BLE MR. JUSTICE YOGESH KHANNA

YOGESH KHANNA, J.

IA No. 5893/2016

1. This is an application by the plaintiff seeking constitution

confidential club. The plaintiff has filed the suit for permanent injunction

CS(COMM) No.434/2016 Page 1 of

against the defendants seeking inter alia a restrain qua violation

infringement of its rights in its patents being as follows :

(i) IN 203034 titled as “Linear predictive Analysis by synthesis

encoding method and encoder”;

(ii) IN 203036 tilted as “apparatus of producing from an original

speech signal a plurality of parameters”;

(iii) IN 234157 tilted as “A method of encoding/decoding multi

codebook fixed bitrate CELP signal block”;

(iv) IN 203686 tilted as “Method and system for alternating

transmission of codec mode information”;

(v) IN 213723 titled as “Method and apparatus for generating

comfort noise in a speech decoder”;

(vi) IN 229632 tilted as “Multi service handling by a Single Mobile

Station”;

(vii) IN 240471 tilted as “A mobile radio for use in a mobile

communication system”;

(viii) IN 241747 tilted as “A transcieving unit for block automatic

retransmission request”;

Along with damages, delivery-up etc. The said suit is pending

adjudication before this Court and is currently at the initial stages of trial.

2. It is argued that this court shall be determining as to whether

plaintiff has offered to defendant No.1 a licence on fair, reasonable

non-discriminatory (FRAND) terms and whether the Plaintiff is entitled

to damages or payment of royalties from the Defendants for sales

by it devices infringing the Plaintiffs patented technology and if so,

CS(COMM) No.434/2016 Page 2 of

what period and on what terms. To discharge its onus and in order

fully assist and in determining the issues of FRAND, the Plaintiff would

be producing various patent licensing agreements with similarly placed

parties, including competitors of the Defendants. These agreements

highly confidential in nature and contain, apart from licensing

business sensitive information relating to such similarly placed parties,

hence the plaintiff is seeking constitution of confidentiality club wherein

all confidential licence agreements relating to similarly placed parties

permitted to be filed in sealed cover and be kept in the safe custody

Registrar General and its access shall be to limited personnel from

side.

3. It is argued that such confidentiality clubs have been constituted

even in past in cases involving patents, trade etc. and in the disputes

involving FRAND issues it is legitimate for the courts to constitute

confidentiality club with a view to ensure the sanctity and confidentiality

of business and commercial sensitive information/material, filed by

party is maintained.

4. During the course of arguments, though, the defendants were

averse to the constitution of such confidentiality club but pressed

defendant/clients be allowed to be a party to such club or to have

access to the information. For the learned counsel for the defendant

is no jurisdiction in the world as known to him wherein the parties

kept out of such confidential clubs and since as the lawyers, though

on instructions of their clients, if are not in a position to discuss

contents of the documents would not be in a position to seek instructions

CS(COMM) No.434/2016 Page 3 of

qua the similarly placed organizations with whom the plaintiff

entered into licence agreements.

5. To support this view the learned counsel for the defendants

upon the following judgments:

(a) Himalayan Cooperative Group Housing Society vs. Balwan

Civil Appeal Nos.4360-61/2015 decided on 29.04.2015 wherein

Supreme Court had noted the importance of obtaining instructions

the client and it notes:

32 . Therefore, it is the solemn duty of an advocate not to transgress the authority conferred him by the client. It is always better to seek appropriate instructions from the client or his authorized agent before making any concession which may, directly or remotely, affect the rightful legal right of the client. The advocate represents the client before the Court and conducts proceedings on behalf of the client. He is the only link between the Court and the client. Therefore his responsibility is onerous. He is expected to follow the instructions of his client rather than substitute his judgment. 33 . ......Thus, according to generally accepted notions of professional responsibility, lawyers should follow the client’s instructions rather than substitute their judgment for that of the client.”

(b) Patrick McKillen vs. Misland (Cyprus) Investment Limited

(2012) EWHC 1158 (Ch) wherein it was held:-

45. While both these statements refer to the possibility of an "exceptional" or "very exceptional" course that might be taken in a patent or trade secret case, it is, as I have said, unknown that it has ever in fact been adopted. The only cases in which it is known that access is sometimes

CS(COMM) No.434/2016 Page 4 of

denied are those concerning the welfare of children...

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