Tesla wins UK 5G patent appeal over $32 fee

Tesla has secured a UK Supreme Court victory that revives its legal challenge over the licensing terms for patents needed to launch 5G-enabled vehicles in Britain.

Tesla revives UK lawsuit over 5G patents

Britain’s Supreme Court ruled in Tesla’s favor on July 27, overturning earlier decisions that had blocked part of the automaker’s lawsuit against InterDigital and Avanci.

Tesla brought the case in London’s High Court in 2023 as it prepared to introduce 5G-enabled vehicles in the UK. The company wants an English court to determine the fair, reasonable and non-discriminatory, or FRAND, terms under which it can license standard-essential patents used in connected vehicles.

InterDigital owns some of the patents available through Avanci’s 5G licensing platform. Avanci combines intellectual property from multiple patent owners and offers licences primarily to vehicle manufacturers.

According to the UK Supreme Court’s case summary, the platform licence cost $32 per vehicle when Tesla filed its claim. Tesla argued that the rate was not FRAND.

The Supreme Court concluded that patent owners cannot avoid their FRAND commitments by placing their patents into a pool or licensing platform. The ruling allows Tesla’s claim to return to the High Court for further proceedings.

Why Tesla challenged Avanci’s licensing model

The High Court rejected Tesla’s request for a FRAND determination in 2024 after InterDigital and Avanci sought to have that part of the lawsuit dismissed. However, it allowed Tesla to continue separate claims challenging the validity of three InterDigital patents.

Tesla then appealed the FRAND decision. A majority of the Court of Appeal upheld the lower court’s ruling, prompting the electric vehicle maker to take the dispute to the Supreme Court.

Organizations including the Computer & Communications Industry Association and the Motion Picture Association intervened in support of the appeal.

The Supreme Court’s decision does not establish the final licence rate Tesla must pay. Instead, it revives the company’s attempt to have the English courts consider whether the platform’s licensing terms meet FRAND obligations.

“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 reported by Reuters.

Tesla stock erases early premarket gain

Tesla shares initially gained about 0.98% to $316.10 in premarket trading following the ruling, Yahoo Finance shows. However, that recovery did not hold after the opening bell.

TSLA was trading near $309.10 later on July 27, down about 1.2% from its previous close. The stock moved between an intraday low of $304.28 and a high of $317.

The patent ruling removes one procedural obstacle for Tesla, but the case could take more time to resolve after returning to the High Court. The final outcome may affect the terms under which Tesla uses 5G technology in vehicles sold in Britain.

For US investors, the dispute also matters because both Tesla and InterDigital are American companies. However, the ruling applies to proceedings in England and Wales and does not directly alter US patent law.

Tesla keeps Bitcoin as Dogecoin payments stay limited

Tesla’s crypto position remains separate from the UK patent dispute. As crypto.news reported last week, the company held its reserve of 11,509 BTC unchanged throughout the second quarter.

Tesla neither bought nor sold Bitcoin during the three months ended June 30, extending the holding pattern that followed its large BTC sale in 2022. Falling crypto prices generated a $112 million after-tax loss on the company’s digital assets during the quarter.

Bitcoin traded near $83,000 at the beginning of the period before falling as low as $58,000 in late June. The decline reduced the reported value of Tesla’s remaining crypto holdings without prompting the company to sell.

Beyond holding Bitcoin on its balance sheet, Tesla has also explored a wider role for cryptocurrency in its business. Tesla CEO Elon Musk suggested in 2024 that the automaker could eventually accept Dogecoin for vehicle purchases, although it has yet to introduce the payment option for its cars.

Tesla currently allows customers to use DOGE only for eligible merchandise sold through the Tesla Shop. Consequently, the UK ruling advances Tesla’s connected-car plans but does not change its current Bitcoin holdings or Dogecoin payment policy.