Tesla wins UK 5 G patent case, expected to push connected cars to market
Britain's Supreme Court on Monday overturned two previous adverse rulings, ruling You can continue to seek fair licensing terms for 5G standard essential patents from InterDigital and patent licensing platform Avanci. The ruling clears a key legal obstacle for Tesla's plan to launch 5G connected cars in the UK. The core dispute in the case is that when standard essential patents are collectively licensed through patent pools or platforms such as Avanci, whether their rates are still subject to review under the principle of "fair, reasonable and non-discriminatory". Avanci had previously proposed a fixed licensing rate of $32 per vehicle to Tesla and refused to negotiate. Tesla believed that the rate was too high and filed a lawsuit with the High Court in London in 2023, asking the court to rule on a reasonable rate. The High Court and the Court of Appeal successively rejected Tesla's request for a FRAND rate ruling, holding that the British court had no jurisdiction over the matter. However, the Supreme Court unanimously supported Tesla’s appeal in the final hearing, holding that the patent owner’s putting its patent into the Avanci platform did not exempt it from fulfilling its FRAND commitments to the European Telecommunications Standards Institute. The court further found that a global blanket license obtained through the Avanci platform may be the only viable option for Tesla, and therefore the British court has jurisdiction to hear the case. This ruling is regarded as a major expansion of the British court's jurisdiction on FRAND issues, confirming for the first time the possibility of jurisdiction over global patent pool royalty setting. The case will be sent back to the High Court for a merits hearing, which will determine whether Avanci's $32 per vehicle charge actually complies with FRAND standards. The ruling could have far-reaching consequences for the entire auto industry, providing an important reference for other automakers facing similar patent licensing issues.