Delhi HC Orders South Korean Firm to Deposit ₹290 Crores As Security in Patent Infringement Suit [Read Judgment]

New Delhi: The Delhi High Court has issued a significant directive requiring Ace Technologies Corp, a South Korean antenna manufacturer, to deposit ₹290 crores as security in a patent infringement case, emphasizing the importance of protecting intellectual property rights and ensuring the enforceability of potential judgments.

Justice Saurabh Banerjee presided over the case filed by Communication Components Antenna Inc. (CCA), a Canadian company, which sought a permanent injunction against Ace Technologies Corp and others for allegedly infringing Indian Patent No. 240893.

The court noted that CCA is “a private company incorporated under the laws of Canada with its principal place of business at 11 Hines Road, Ottawa, Ontario, Canada,” providing cellular base station products including “Antennas, Amplifiers, Low Loss Combiners, Tower Mounted Amplifiers (TMA), and Diplexers.”

The defendants include “Ace Technology Corporation, a South Korean company engaged in the manufacturing and sale of antennas for the telecommunication industry,” along with Shin Ah Ltd., a Hong Kong-based company, and two Indian subsidiaries.

Addressing enforcement concerns, counsel for the plaintiff submitted that “South Korea does not share a reciprocal arrangement with India for recognition and enforcement of decrees under Section 44A of the CPC” and that “a decree passed by a foreign court shall be enforceable within the Republic of South Korea only upon satisfaction of the condition of reciprocity.”

The court expressed concern over financial risks, observing that “Defendant No. 1 has lost more than 64.90% of its share value” and noting that the plaintiff has claimed damages amounting to “approximately ₹1160 crores (approximately USD 140 million).”

In a key directive, the court ordered: “Defendant No. 1 is hereby directed to furnish and deposit an amount equivalent to 25% of the claimed damages, i.e., ₹290 crores, either by way of a Bank Guarantee issued by a scheduled commercial bank or in the form of a Fixed Deposit Receipt.”

The court emphasized the need to protect patent holders’ rights, stating that such a measure is essential “to uphold/protect the rights of a registered patent holder like the plaintiff and to promote a progressive patent regime that incentivizes innovation, creativity, and intellectual advancement.”

Counsel for the defendants argued that approximately ₹70 crores had already been deposited pursuant to earlier court orders, and maintained that the defendant company possesses sufficient financial health to satisfy any potential decree.

The court has granted the defendants four weeks to comply with the deposit requirement, in addition to the amounts already deposited in compliance with previous orders.

Mr. J. Sai Deepak, Senior Advocate, along with Mr. Mohit Goel, Mr. Sidhant Goel, Mr. Deepankar Mishra, Mr. Aditya Goel, and Mr. Avinash K. Sharma, Advocates, appeared for the Plaintiff. Mr. Suraj Kumar Singh, Mr. Bharat Singh, and Mr. Abhay Singh, Advocates, appeared for the Defendants.

Case Title: Communication Components Antenna Inc. vs. Ace Technologies Corp. & Ors.

[Read Judgment]