In the ongoing patent‑infringement case between Dolby and Lava International, the Delhi High Court has ordered the Indian smartphone manufacturer to deposit Rs 20.81 crore as security with the court’s registrar general, covering all past sales from 2019 to 2024.
According to media reports, Lava may instead submit an unconditional bank guarantee for the same amount from a local bank in favour of the registrar general within eight weeks.
This interim relief comes amid Dolby’s allegations that Lava unlawfully used its proprietary audio compression technologies without a valid license. Dolby contends that Lava continued to incorporate its patented audio enhancements, which improve sound quality in electronic devices, even after the licensing agreement expired in December 2020.
Dolby further claimed that Lava failed to renew the license and ignored repeated requests for compliance audits, yet continued to manufacture and sell devices featuring Dolby technology. If Lava does not provide the bank guarantee within the stipulated period, Dolby will be entitled to seek an interim injunction restraining Lava from selling any additional devices in India that implement the disputed patents, media reports added.
