₹290 Crores Security Directed in Patent Infringement Case; SIM And SAN Leads for Communication Components

In a significant development for cross-border intellectual property enforcement, the Hon’ble Delhi High Court has directed South Korean firm Ace Technologies Corporation to furnish security amounting to ₹290 crores in an ongoing patent infringement dispute concerning cutting-edge cellular antenna technology. The matter pertains to alleged infringement of Indian Patent No. 240893, held by Canada-based Communication Components Antenna Inc., a global leader in cellular base station infrastructure.

The Delhi High Court passed the order in response to concerns raised by the plaintiff regarding the enforceability of any future decree, given that the defendant is based outside India, has limited assets within the country, and operates in a jurisdiction — South Korea — which does not have a reciprocal arrangement with India for the enforcement of civil decrees under Section 44A of the Code of Civil Procedure, 1908.

The Court invoked its inherent powers under Section 151 of the Civil Procedure Code, which enables Indian courts to pass protective interim orders to prevent frustration of judicial proceedings and to safeguard the legitimate rights of parties. The order is seen as a critical step in ensuring that Indian courts retain effective control over disputes involving foreign defendants, especially in the realm of intellectual property where cross-border enforcement challenges are well-recognised.

Communication Components Antenna Inc., headquartered in Ottawa, Canada, is a reputed global player in the telecommunications hardware space, offering innovative antenna solutions that enhance cellular network performance. The company holds Indian Patent No. 240893 for its proprietary antenna technology, which is integral to cellular base station networks.

The plaintiff approached the Delhi High Court seeking a permanent injunction to restrain Ace Technologies Corp. and its Indian subsidiaries from manufacturing, selling, or offering for sale antenna products that allegedly infringe the suit patent. The case has been hotly contested over the years, with the Court previously directing the defendants to deposit substantial sums as security based on their sales of allegedly infringing products in India.

Notably, Ace Technologies Corp., a South Korean entity, along with its Indian subsidiaries, has contended that they have ceased business operations in India due to lack of further orders. The plaintiff, however, highlighted that the defendants' limited presence and diminishing asset base within India poses a significant risk to the enforceability of any future judgment, thus necessitating the present security order.

In its detailed order, the Court acknowledged that while the defendants have already deposited over ₹70 crores pursuant to earlier directions, the precarious financial condition of Ace Technologies Corp., including a near 65% decline in its share value, compounded concerns regarding their ability to satisfy any decree that may ultimately be passed against them.

The Court further noted that South Korea is not recognised as a reciprocating territory under Indian law, meaning any Indian court decree would require fresh proceedings for recognition and enforcement in South Korea, a process that is both uncertain and cumbersome. In such circumstances, the Court held that invoking its inherent jurisdiction under Section 151 CPC to direct a security deposit was not only legally sound but also practically necessary.

The Court emphasised that its order strikes a careful balance between protecting the plaintiff's rights and avoiding prejudgment of the underlying merits of the dispute, which is still at the stage of evidence recording.

Echoing similar sentiments, Sidhant Goel, Senior Partner at SIM And SAN - Attorneys at Law, added, “This is a welcome judgement and shows that India is equipped with laws which ensure comprehensive enforcement of IP rights of foreign entities.”

Communication Components Antenna Inc. is being represented by Mr. J. Sai Deepak, Senior Advocate, known for his expertise in complex IP and technology litigation, along with the SIM And SAN legal team comprising Mr. Mohit Goel, Mr. Sidhant Goel, Mr. Deepankar Mishra, Mr. Aditya Goel, and Mr. Avinash K. Sharma, Advocates.

Legal experts view the order as an important precedent in bolstering India's reputation as a credible jurisdiction for IP enforcement, especially in cases involving foreign defendants. With the increasing integration of global supply chains and the proliferation of intellectual property-driven industries, such judicial safeguards provide much-needed confidence to global innovators seeking to protect their IP in India.

In an era where quick commerce, 5G networks, and digital infrastructure are transforming economies, robust patent enforcement is seen as critical to attracting foreign investment and fostering innovation.

The case remains pending before the Hon'ble Delhi High Court, with the parties currently engaged in the process of evidence recording. The present order ensures that the plaintiff's claims remain protected during the course of the litigation, providing a measure of interim security until final adjudication.