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Tesla wins bid to revive UK lawsuit for 5G patents licence - Finance news and analysis from Global Banking & Finance Review
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Tesla wins bid to revive UK lawsuit for 5G patents licence

Published by Global Banking & Finance Review

Posted on July 27, 2026

2 min read

· Last updated: July 27, 2026

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Tesla wins bid to revive UK lawsuit for 5G patents licence

Overview of Tesla's Legal Battle Over 5G Patent Licensing

LONDON, July 27 (Reuters) - Elon Musk's Tesla on Monday won its bid to revive a London lawsuit brought against U.S. technology firm InterDigital and a patent licensing platform, seeking a patent licence ahead of the automaker's launch of 5G vehicles in Britain.

Background of the Lawsuit

Tesla sued InterDigital and Avanci – which licenses patents from multiple owners, largely for automotive uses – at London's High Court in 2023.

FRAND Terms and Patent Licensing

The company wanted the court to determine the fair, reasonable and non-discriminatory (FRAND) terms of a licence for Tesla to use patents owned by patent holders, including InterDigital and which are licensed by Avanci.

Court Proceedings and Initial Rulings

InterDigital and Avanci asked the court to throw out Tesla's bid for a ruling on FRAND terms for a licence and the High Court ruled in their favour in 2024, though Tesla's claim to revoke three of InterDigital's patents could continue.

Appeals and Supreme Court Decision

Tesla unsuccessfully appealed against that ruling at the Court of Appeal before challenging it at the United Kingdom's Supreme Court, supported by interveners including tech lobbying group CCIA and the Motion Picture Association.

Supreme Court Ruling

The Supreme Court ruled in Tesla's favour, saying that owners of patents are not released from obligations to licence them on FRAND terms just by joining a patent pool or platform.

Implications for the Case

The case is now expected to return to the High Court.

Reactions and Statements

Laurie Fitzgerald, president of Avanci Vehicle, said in a statement: "We respectfully disagree with today's decision and continue to believe Tesla's claims are without merit."

Tesla and InterDigital did not immediately respond to a request for comment.

(Reporting by Sam Tobin; editing by Sarah Young)

Key Takeaways

  • The UK Supreme Court ruled that SEP owners remain bound by FRAND obligations even if they license via a patent pool or intermediary like Avanci, enabling Tesla’s case to proceed to determine fair terms (supremecourt.uk).
  • This marks a pivotal shift: previously, both the High Court and Court of Appeal dismissed Tesla’s broader FRAND claims against the platform operator without enforceable obligations, but now the case returns to the High Court for substantive licensing determinations (zoomlaw.co.uk).
  • Tesla’s bid involves a substantial flat-rate licence offered by Avanci—$32 per vehicle—which it argues exceeds FRAND; the Supreme Court’s decision opens the door to recalibrating that rate under court supervision (linklaters.com)

References

Frequently Asked Questions

What is the Tesla 5G patent lawsuit about?
Tesla's lawsuit seeks a fair licence for 5G patents ahead of its UK vehicle launch, targeting InterDigital and Avanci.
Who are InterDigital and Avanci?
InterDigital is a U.S. technology firm, and Avanci is a patent licensing platform involved in automotive use patents.
What was the initial court ruling in the UK?
The UK High Court initially ruled against Tesla, dismissing its request for a FRAND licence terms ruling.
How did the Supreme Court rule on Tesla's appeal?
The Supreme Court sided with Tesla, stating patent owners must still offer FRAND licences even when patents are pooled.
What happens next in the lawsuit?
Following the Supreme Court ruling, the case is expected to return to the UK High Court for further proceedings.

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