Delhi High Court Clarifies Scope and Standards for Granting Pro Tem Orders in SEP Litigation

The Delhi High Court clarified the use of pro tem deposits in Standard Essential Patent (SEP) cases while hearing Dolby International’s infringement suit against Lava.

The Court held that under Section 151 CPC, courts may order temporary deposits to balance SEP holders’ rights with implementers’ ability to contest patents during interim litigation.

Before directing such deposits, courts must form a prima facie view on patent validity and essentiality by considering factors like licensing history, enforcement, and negotiation conduct. The Court rejected the four‑fold Nokia–Oppo test and emphasized fairness under FRAND terms and defendants’ financial capacity.

Lava was directed to deposit about ₹20.81 crore as security until interim injunction is decided.