Tesla Scores UK Win in 5G Patent Fight
Synopsis
The Supreme Court reopened Tesla's lawsuit over FRAND licensing terms for patents used in connected vehicles.
Tesla was granted a High Court of Justice ruling in his favor that opens the doors to a patent infringement lawsuit in the UK that was limited, and resumes the fight against the licensing conditions for the technology in connected cars.
The ruling is an appeal back to the High Court, and had overturned previous rulings that allowed no judicial determination of fair licensing terms for Tesla.
InterDigital holds wireless communications patents and Avanci is a licensing firm that supplies access to standard-essential patents (SEPs) bundled together for the automotive sector.
Tesla says the court needs to decide if the licensing terms meet the standard used in patent licensing around the world, which is fair, reasonable and non-discriminatory (FRAND).
Supreme Court Reverses Earlier Decisions
Tesla made its claim in London in 2023 as it prepares to launch cars with 5G wireless connectivity in the UK. In 2024, the High Court rejected Tesla's request, which was subsequently affirmed by the Court of Appeal.
In a unanimous decision, the Supreme Court of the United Kingdom (UK) held that a patent holder may still have FRAND obligations even if the patent is administered through a patent pool like Avanci. The decision paves the way for the case to be re-heard in the High Court.
Connected Vehicle Patents Draw Global Attention
Standard-essential patents are patents that are essential to the industry standards, including 5G. They're a common feature in connected vehicles for navigation, software updates, emergency communications and other digital services.
Avanci's automotive licensing programme features patents from over 60 technology companies and licenses are in place with vehicle manufacturers from Europe, North America and Asia, including BMW, Ford, General Motors, Hyundai, Kia, Mercedes-Benz, Toyota, Volkswagen and Volvo Cars.
The GSMA Mobile Economy Report 2025 forecasts a total of 2 billion 5G connections worldwide by 2025, putting licensing agreements associated with connected devices and vehicles into the spotlight.
According to Tesla's latest financial results, the company made $22.5 billion in revenue during the first quarter of 2026. After the judgment, Avanci expressed their disagreement with the ruling and still held a view that Tesla's claims were lacking in merit.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
