Tesla’s legal fight with InterDigital and Avanci over 5G patent licensing gained new momentum after the UK Supreme Court revived its case. Despite the court’s favorable decision allowing Tesla to press on with its claim for fair licensing terms, the company’s stock slipped 1.39% to $308.69.
The core of the dispute revolves around standard-essential patents needed for 5G connectivity in vehicles. InterDigital holds several patents licensed through Avanci, a platform that offers a one-stop license for automakers at a fixed fee of $32 per vehicle. Tesla challenges this model, arguing the licensing terms do not fulfill the fair, reasonable, and non-discriminatory (FRAND) criteria required by high courts.
UK Supreme Court Restores Tesla’s FRAND Claims
The High Court originally dismissed Tesla’s efforts to determine FRAND royalty rates in 2024, siding with InterDigital and Avanci’s objections. Tesla appealed, and the Supreme Court overturned that block, ruling that patent owners can't bypass FRAND obligations by pooling patents in platforms like Avanci. However, the ruling stops short of setting a final licensing fee or forcing changes to Avanci’s existing pricing. Instead, it sends the case back to the High Court, where Tesla can argue that the current licensing structure violates FRAND standards.
Throughout the dispute, Avanci maintained that Tesla's claims lack merit and opposed efforts to alter its licensing platform. The ongoing case could shape how future deals for connected vehicle technology in the UK and beyond are negotiated.
Tesla’s legal progress comes separately from its cryptocurrency strategy, as the company continues to hold roughly 11,509 Bitcoin without changes. This move keeps Tesla’s financial and legal fronts clearly distinct despite developments in both areas.
