Published: 2/23/16
Publication: Hindustan Times
High patent royalty fees charged by foreign technology firms are fast emerging a major hurdle for India’s ambitions of turning into a global mobile manufacturing hub.
Mobile phone makers such as Micromax, Intex, Lava and iBall will together pay at least Rs 2,000 crore in royalty payments over the next four years to foreign telecom equipment makers.
Standard essential patents owners demand royalty payments on the end value of the mobile device rather than on the value of the component used.
This means that royalty payouts will only rise when Indian phone makers launch more sophisticated — and expensive — handsets as the market matures.