Chinese mobile manufacturers, Vivo and Oppo have been dragged into legal matters by Dolby Laboratories for illegal usage of their sound enhancement technology over their devices. Both of the firms are said to pay royalty to the victim firm based on every device on which it was illegally installed. For those who don’t know Dolby Laboratories is an American company that specializes in audio noise reduction, encoding and compression techniques which the company then licenses out to third-party manufacturers which in turn pay royalties to them based on the terms and conditions.
According to Dolby, both the firms, Vivo and Oppo had been launching new mobiles with Dolby’s sound enhancement technology pre installed in them but in turn don’t pay royalties to the victim firm which in turn leads to a big amount of monetary loss to the victim firm. According to the reports Smartphone maker, Vivo has seen a whopping 759 percent year-on-year growth in sales and on the other hand the other accused firm, Oppo has been experiencing 159 percent of year-on-year growth. However the actual market share of both of the firms is way too less than the stats but it won’t be wrong to say that Dolby must have paid a big part in increasing that percentile of growth for both the firms which in return got nothing.
Now, the High Court has asked both the firms to deposit Rs 32 per infringing device manufactured, imported and sold in escrow to the victim firm while they discuss the royalty terms. Also, both of the firms have been asked to “furnish” the “particulars of manufacture, sale, and import of the devices” using Dolby’s technology illegally by 5th of every month and accordingly the total of the royalty should be submitted by 8th of that month.
The total amount would be paid in US Dollars and should be paid as soon as possible according to High Court’s directives.