Delhi High Court Upholds ₹217 Crores Lost Profit Damages In Patent Infringement Suit

Delhi High Court Upholds ₹217 Crores Lost Profit Damages In Patent Infringement Suit

Communication Component Antenna Inc. (CCAI) was awarded ₹217 crores as lost profits damages by the Delhi High Court in a patent infringement case against Mobi Antenna Technologies.

Justice Jyoti Singh referenced the Delhi High Court's ruling in Strix Ltd v. Maharaja Appliances Limited, which established that a suitable method for calculating damages would involve assessing the potential reasonable profit that the patentee could have garnered if the infringing product had been sold by them.

During the proceedings, the Court considered a patent infringement case filed by CCAI against Mobi, alleging infringement of a patent granted for an invention named ‘Asymmetrical Beams for Spectrum Efficiency’ in bisector array antennas. According to the allegations in the suit, the novelty of the patent lay in its ability to enhance spectrum utilization efficacy by altering the beam pattern.

As per the plaintiffs, Mobi's bisector array antennas were purportedly interchangeable with their own.

The invention aims to enhance efficacy without sacrificing quality, enabling a higher number of subscribers to connect using the same spectrum while maintaining call quality.

Mobi was actively involved in the trial but ceased its participation in the proceedings after the Court rejected its challenge to the validity of CCAI's patent.

Based on the evidence presented, the Court found the following facts to be established:

a) The beam patterns of both products were alike.

b) Mobi's infringing products exhibited a beam shape that closely resembled the "substantial equivalence" of the critical coverage area compared to the earlier antennas.

c) Mobi's products replace or are capable of replacing three existing 65-degree antennas in a 3-sector configuration as well as in greenfield cellular networks where three 65-degree antennas in a 3-sector configuration could have been used.

Advocates Sidhant Goel, Mohit Goel, Deepankar Mishra, and Aditya Goel from Sim & San conducted the cross-examination of the defense witnesses.

The Court, basing its decision on lost profits, determined that damages were to be awarded. It estimated the lost market share by supposing that if Mobi had not been present in the market, CCAI would have sold approximately 47,355 units, each with a profit margin of $550. This calculation amounted to approximately ₹217 crores.

Consequently, the Court issued a permanent injunction against Mobi and directed them to pay ₹217 crores along with 5% interest per annum from the date of the judgment, along with the entire costs of the proceedings.