Tesla wins bid to revive UK lawsuit over 5G patent licence

• Tesla originally sued InterDigital and Avanci in London's High Court in 2023 seeking FRAND terms for 5G patents ahead of launching 5G-enabled vehicles in Britain
• The Supreme Court overturned lower court rulings that had favored InterDigital and Avanci's request to dismiss Tesla's bid for FRAND licensing terms
• The ruling establishes that patent owners retain FRAND obligations even when participating in patent pools or licensing platforms, with Tesla receiving support from tech groups including CCIA and the Motion Picture Association

Tesla Wins UK Supreme Court Ruling to Revive 5G Patent Lawsuit

Tesla secured a significant legal victory on July 27 as the UK Supreme Court ruled in favor of reviving its lawsuit against InterDigital and patent licensing platform Avanci. The case centers on obtaining fair, reasonable, and non-discriminatory (FRAND) terms for 5G patents needed for Tesla's planned launch of 5G-enabled vehicles in Britain.

Case Background

Tesla initially filed suit in London's High Court in 2023, seeking court determination of FRAND licensing terms for patents owned by holders including InterDigital and licensed through Avanci, a platform that licenses patents primarily for automotive applications. InterDigital and Avanci successfully moved to dismiss Tesla's FRAND claims in 2024, though Tesla's challenge to revoke three InterDigital patents was allowed to proceed. Tesla's subsequent appeal to the Court of Appeal was also unsuccessful.

Supreme Court Decision

The Supreme Court overturned previous rulings, establishing that patent owners remain obligated to license patents on FRAND terms even after joining patent pools or licensing platforms. Tesla received support from interveners including technology lobbying group CCIA and the Motion Picture Association.

Market Implications

The ruling sets important precedent for patent licensing in the automotive sector as the industry transitions to connected, 5G-enabled vehicles. The decision could impact negotiations between automakers and patent licensing platforms, potentially affecting licensing costs and market entry strategies for next-generation connected vehicles.

The case will now return to the High Court for proceedings on the substantive FRAND licensing terms, which could influence how patent pools structure their licensing arrangements with automotive manufacturers.