Dolby v. Lava Standard Essential Patent Case at Delhi High Court

In 2025, Dolby International AB initiated legal proceedings against the Indian smartphone manufacturer Lava International Ltd. before the Delhi High Court. Dolby alleged that Lava had infringed its standard essential patents covering advanced audio coding technologies by incorporating the patented codecs into its handsets without securing a FRAND license. Lava contested the claims, arguing that the patents were not essential, that the asserted royalty demands were excessive, and that Dolby had failed to act in accordance with its FRAND obligations during negotiation. The court scrutinized the technical essentiality of the patents, the history of licensing discussions, and the parties' conduct. The dispute became a pivotal test for the enforcement of SEPs within India's rapidly expanding mobile device market, raising questions about the balance between innovation incentives and consumer access.

The Delhi High Court ruled in favor of Dolby, recognizing the patents as valid and essential to the standards. It determined that Dolby's licensing offer was broadly FRAND-compliant, while Lava had failed to engage constructively. The court ordered Lava to enter into a FRAND license with Dolby and to pay past royalties, though it declined to impose a permanent injunction in favor of ongoing commercial viability.

Whether the audio codec patents were truly standard essential; whether Dolby had offered a license on FRAND terms and negotiated in good faith; and whether Lava's use constituted willful infringement justifying an injunction or monetary relief.

The verdict reinforced the legal strength of standard essential patents in India, setting a precedent that encourages foreign technology holders to enforce their IP in the Indian market. It prompted Indian device manufacturers to reevaluate their licensing strategies and elevated the importance of good-faith FRAND negotiations. The case also contributed to the global discourse on SEP jurisprudence, highlighting the Delhi High Court's role as a prominent forum for complex intellectual property disputes.