Micromax and Karbonn are expanding rapidly across Asia, emboldened by their Indian smash success.
In emerging markets, brands such as Micromax, Nexian, and i-Mobile chipped away at Nokia's market share.
Galaxy Tab led the pack, with a market share of 25.1%, followed closely by Indian technology products manufacturer Micromax Informatics Ltd.
Micromax will have to pay Ericsson royalty of between 1.25% and 2% of sales for each unit of its cellphone models sold.
Micromax's Funtab and Samsung's Galaxy tablets also run on Google's Android software.
There is also stiff competition from Chinese manufacturers and low-cost Indian phone makers such as Micromax Informatics Ltd. in the South Asian nation.
In the last quarter of 2012, Samsung led the pack with a 33% market share, followed by local company Micromax Informatics with 13%.
Handset makers such as Samsung and Micromax use technologies that are mostly owned by other companies to build their own cellphones and devices.
They retail at prices below the cheapest Samsung Android phones and compete against relatively crudely designed models by brands like Spice and Micromax.
New Delhi-based Micromax is the world's twelfth largest cellphone maker.
Ericsson and Micromax are the latest companies to fight it out in the courts as patent disputes between technology companies and smartphone makers trigger a slew of litigation globally.
"Micromax is committed to negotiating a FRAND license with Ericsson as Ericsson has undertaken to providing a Fair Reasonable and Non-Discriminatory (FRAND) license to Micromax, " the Indian company said in a statement.
The Delhi High Court, in its order Monday, asked Ericsson and Micromax to negotiate a FRAND pact in the next one month, according to a copy of the order posted on the court's website.
The development follows an Indian court order that went in favor of Ericsson, which had sued Micromax for using some of its patented technology to make mobile phones that function on the global system for mobile communications platform.
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