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IN THE HIGH COURT OF DELHI AT NEW DELHI FAO(OS) 369/2014 VRINGO INFRASTRUCTURE INC, and ANR. ..... Appellant Represented by: Ms.Pratibha M.Singh, Sr.Adv. instructed by Mr.Ashutosh Kumar, Mr.B.Prashant Kumar, Mr.Saurav, Advs. versus ZTE CORPORATION and ORS. ..... Respondent Represented by: Mr.Sandeep Sethi, Sr.Adv. instructed by Mr.Sanjeev K.Tiwari, Ms.Valini Panta, Advs. for R-1 to 3. CORAM: HON'BLE MR. JUSTICE PRADEEP NANDRAJOG HON'BLE MS. JUSTICE MUKTA GUPTA O R D E R 13.08.2014 CAVEAT 683/2014 Counsel as above appears for the respondent/ caveator and thus the caveat is discharged. CM Nos. 13159-13161/2014 Allowed. FAO(OS) 369/2014 1. Having heard learned counsel for the parties we note that emphasis in appeal today is restricted to prayer ?b?. It reads as under: ?b. Set aside the observations/ findings recorded by the learned Single Judge against the appellants to the following effect: - Mr.Regis Bates, Jr is not an expert (paragraph Nos.22-25 and 27); - The predecessor in title and the licensees of the appellants were also required to complain against the respondents (paragraphs 29-30 and 35); - Working of a patent must necessarily be established in plaint and the averments contained in rejoinder/replication cannot be taken into consideration (paragraphs 33-34) 2. To appreciate the prayer made it would be necessary to pen profile the backdrop facts. The plaintiff No.1 claims to be the subsidiary of plaintiff No.2. As per the plaint, plaintiff No.2 is engaged in the business of development and manufacture of mobile application products. The plaintiffs claim proprietary rights in patent No. IN-200572. They title the innovation ?A method and a device for making a handover decision in a mobile communication system?. The plaintiffs claim that the innovation lies in the ability to measure at a mobile station, a radio signal transmitted by a base station of a microcell and reporting the measurement resulting at substantial regular intervals and commanding the mobile stations as slow moving mobile stations to switch to the base station of a suitable microcell. The plaintiffs explain the patent with respect to pictorial description by the learned Single Judge in paragraph 5 of the impugned decision. 3. The grievance was against defendant No.3, a wholly owned subsidiary of defendant No.4, which defendant is a company incorporated in the People?s Republic of China. 4. The allegation is that the defendants are infringing the patent of the plaintiff by manufacturing, importing and selling infrastructure equipments including Base Station Controllers, the examples of which as per the allegations in the plaint have been noted in paragraph 7 of the impugned decision. 5. The plaintiffs do not claim to be the inventor of the patent. According to them the patent was owned by NOKIA Corporation and was assigned to them on August 09, 2012. 6.
The defendants dispute having infringed the patent of the plaintiff and
disclosed to the learned Single Judge the technology behind the product manufactured and sold by them. The same has been captured by the learned Single Judge in paragraph 10 of the impugned decision. 7. In support of its case that the defendants were infringing the patent of the plaintiffs, which have been acquired by the plaintiff on assignment from NOKIA, the plaintiffs filed a detailed affidavit of one Mr.Regis Jr. Bates to bring home the point that prima facie the defendants were infringing the patent of the plaintiffs. The learned Single Judge has taken a prima facie view that the worth of the opinion of Mr.Regis Jr. Bates would be nil. The reason for the view taken by the learned Single Judge is that he does not hold a degree in science, engineering or technology concerning telecommunication. As per the learned Single Judge he lacks practical or research experience to qualify as an expert. He does not hold a responsible post in a scientific or technical department. 8. The first grievance in prayer ?b? relates to said prima facie observations made by the learned Single Judge. 9. The plaintiffs would be adversely affected as told to us at the bar today, for the reason the plaintiffs have been citing Mr.Regis Jr. Bates as their expert witness in other litigations and the prima facie view taken by the learned Single Judge would cause prejudice to the plaintiffs. 10. Suffice it to state that observations in ad-interim or interim orders in relation to the backdrop facts noted are never treated as conclusive and final. It would be not possible for any Judge to bring out an issue of law without capturing the backdrop facts in which the issue of law has to be decided. Thus, in relation to interim orders the capturing of the backdrop facts is not to be treated as if the said backdrop facts have been held to be proved. The said backdrop facts are akin to the backdrop colour on the canvas put by an artist before painting a picture. 11. Be that as it may, it is accepted and recognised that a person could be an expert in an area of specialised knowledge by experience and he or she need not hold a degree in the field of specialised knowledge. A person can also become an expert by virtue of one?s avocation or occupation. 12. To understand the second grievance as per prayer ?b? the backdrop facts would be a view taken by the learned Single Judge that the defendants are selling the products using the technology, which is alleged to be constituting a violation of the plaintiff?s patent rights, since the year 2006. The learned Single Judge has noted the fact that companies like NSN (Nokia), Alcatel, Samsung etc. who are the licensees of the patent of the plaintiffs were aware of the sale of the products by the defendants in India and that they never objected thereto. 13. The grievance of the plaintiffs is that the observations would constitute a finding against them and may create problems in the form of estoppel or waiver. It is urged that licensees cannot take action for infringement of a patent. 14.
The observations of the learned Single Judge have to be understood in
the context of the fact that they find a mention in the impugned order when the learned Single Judge was considering the balance of convenience. To put it pithily, the signature tune of the observations is that no injunction should be granted against a defendant if the defendant is continuing with an activity for long. It is trite that in cases of injunction where a plaintiff has permitted a situation to exist for a long period of time, its discontinuation is not warranted unless a prima facie case of a very strong nature is made out. 15. The observations of the learned Single Judge have to be treated as prima facie and have to be understood as above. We see no cause for the plaintiff?s grievance of estoppels or waiver against it emanating from the findings returned by the learned Single Judge. 16. The third grievance has to be understood with reference to the fact that in the plaint there are no averments regarding commercial exploitation of the patents in India on which the plaintiff relied. When a plea was taken in the written statement that in view of the law declared in the opinion reported as AIR 1997 DELHI 79 Franz Xaver Huemer Vs. New Yash Engineers the plaintiffs are not entitled to any relief, in the replication pleadings were made regarding commercial exploitation of the patent through the licensees the learned Single Judge took the view that replication does not constitute pleadings. The Learned Single Judge held, for purposes of grant of an ad-interim injunction, that he must proceed on the basis that the plaintiffs had not commercially exploited the patents in India. 17. Emphasising that the view taken is a prima facie view, we would simply hold that law is clear on the subject. If a Court grants an opportunity to a plaintiff to file a replication, the replication has to be treated as a pleading. Of course if a fact is pleaded for the first time in a replication, should the defendants desire a right has to be afforded to file a sur-rejoinder. 18. In view of the discussion noted above, dealing with three issues concerning prayer ?b? and noting that during arguments no arguments have been advanced on prayer ?a? we bring the curtains down noting that the learned Single Judge has vacated the ex-parte ad-interim injunction but on terms. The impugned order is not interfered with. 19. The appeal is disposed of. 20. No cost. CM 13158/2014 (stay) Dismissed as not pressed. PRADEEP NANDRAJOG, J. MUKTA GUPTA, J. AUGUST 13, 2014 ?ga? FAO(OS) 369/2014 Page 1 of 6 $ 17
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