Tesla has won a significant legal victory in the UK after the Supreme Court ruled that the electric carmaker can continue its lawsuit over licensing terms for 5G technology patents ahead of
the rollout of its connected vehicles in Britain.
The company, led by Elon Musk, launched proceedings in London's High Court in 2023 against US technology company InterDigital and patent licensing platform Avanci. Tesla is seeking a court determination of what would constitute fair, reasonable and non-discriminatory (FRAND) terms for a licence covering patents needed for 5G-enabled vehicles.
Tesla argues that it requires certainty over licensing costs before introducing vehicles equipped with 5G technology to the UK market. The disputed patents are owned by several companies, including InterDigital, and are licensed collectively through Avanci's automotive patent pool.
The High Court dismissed Tesla's request in 2024, ruling that the company could not pursue a court-set FRAND licence, although it allowed Tesla's separate challenge to three InterDigital patents to continue. The Court of Appeal later upheld that decision.
However, the Supreme Court has now overturned the earlier rulings, finding that patent holders do not escape their obligations to offer licences on FRAND terms simply because they make their patents available through a licensing platform or patent pool such as Avanci.
The decision clears the way for Tesla's claim to return to the High Court, where judges are expected to consider the appropriate licensing terms.
The case has attracted wider attention from the technology industry, with organisations including the Computer & Communications Industry Association (CCIA) and the Motion Picture Association backing Tesla's appeal.
Responding to the ruling, Laurie Fitzgerald, president of Avanci Vehicle, said the company respectfully disagreed with the Supreme Court's decision and maintained that Tesla's claims had no legal merit.
The judgment is expected to have implications beyond Tesla, potentially affecting how standard-essential patents for connected vehicles and other technologies are licensed through patent pools in the UK. Photo by Raysonho @ Open Grid Scheduler / Scalable Grid Engine, Wikimedia commons.
