Tesla has won a bid to revive its London lawsuit against U.S. technology company InterDigital and patent licensing platform Avanci as it seeks a patent licence ahead of launching 5G-enabled vehicles in Britain.
Tesla first filed the lawsuit in London's High Court against InterDigital and Avanci, asking the court to determine Fair, Reasonable and Non-Discriminatory (FRAND) licensing terms for using essential 5G patents. The automaker argues that Avanci's flat-rate pool fee of $32 per vehicle exceeds what would qualify as fair FRAND terms.
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In 2024, the High Court dismissed Tesla's request for a ruling on FRAND licensing terms after siding with InterDigital and Avanci. However, Tesla's separate challenge seeking to invalidate three InterDigital patents was allowed to continue.
Tesla lost its appeal before the Court of Appeal before taking the case to the UK Supreme Court, where it was supported by intervenors including the Motion Picture Association and technology lobbying group CCIA.
The Supreme Court ruled in Tesla's favour, holding that patent owners remain bound by their obligation to license patents on FRAND terms even when they are offered through a patent pool or licensing platform.
The case will now return to the High Court for further proceedings.
"We respectfully disagree with today's decision and continue to believe Tesla's claims are without merit," Avanci Vehicle President Laurie Fitzgerald said in a statement.
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The ruling could have broader implications for the automotive and technology industries, as the High Court will now consider Tesla's request to determine FRAND licensing terms for the disputed 5G patents.
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