
Tesla secured a unanimous victory at Britain's Supreme Court on Monday, winning the right to revive its London lawsuit against InterDigital and patent platform Avanci. The Supreme Court ruled that UK courts do have jurisdiction to hear claims for declarations regarding whether rates and terms for global pools of SEPs are FRAND, rejecting Avanci's key defense argument that UK courts had no business adjudicating terms for patents held worldwide. Most significantly, the court held that patent owners are not released from their FRAND obligations simply by participating in a patent pool or licensing platform. This ruling could have implications well beyond Tesla and the automotive sector, potentially making it harder for SEP holders to use licensing platforms as a shield against FRAND scrutiny. The case now returns to the High Court for substantive proceedings on whether the $32 per vehicle rate is actually FRAND, with Tesla's legal team having won the right to make this argument after losing at two lower court levels.
Tesla brought the case in London's High Court in December 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 terms under which it can license standard-essential patents used in connected vehicles. Avanci's current rate for a 5G vehicle license is $32 per vehicle — more than double the $15 per vehicle rate it charges for 4G. Tesla's position is that this rate does not meet the FRAND standard: Fair, Reasonable, and Non-Discriminatory terms that SEP holders are legally obligated to offer. The initial High Court ruling in July 2024 went against Tesla, with High Court judge Timothy Fancourt blocking the licensing claim and pointing the parties toward Delaware's Chancery Court. Tesla's appeal to the Court of Appeal was also rejected before the company escalated to the UK Supreme Court, where it was supported by intervenors including the Computer & Communications Industry Association (CCIA) and the Motion Picture Association.
Tesla shares initially gained about 0.98% to $316.10 in premarket trading following the ruling, but the recovery did not hold after the opening bell. According to Yahoo Finance, 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, with the final outcome potentially affecting the terms under which Tesla uses 5G technology in vehicles sold in Britain. 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. The $32-per-vehicle figure Avanci is seeking may sound modest in isolation, but multiplied across millions of vehicles and stacked alongside other licensing fees, it adds up significantly for the automotive industry.
Tesla's crypto position remains separate from the UK patent dispute. As reported by crypto.news, the company held its reserve of 11,509 BTC unchanged throughout the second quarter, with Tesla neither buying nor selling Bitcoin during the three months ended June 30. Falling crypto prices generated a $112 million after-tax loss on the company's digital assets during the quarter, with Bitcoin trading near $83,000 at the beginning of the period before falling as low as $58,000 in late June. Beyond holding Bitcoin on its balance sheet, Tesla has explored a wider role for cryptocurrency in its business, with CEO Elon Musk suggesting in 2024 that the automaker could eventually accept Dogecoin for vehicle purchases, though 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, with the cryptocurrency not available for vehicle purchases. According to the latest reports, the UK ruling advances Tesla's connected-car plans but does not change its current Bitcoin holdings or Dogecoin payment policy. Organizations including the Computer & Communications Industry Association and the Motion Picture Association intervened in support of the appeal, with Avanci Vehicle President Laurie Fitzgerald stating that the platform respectfully disagrees with the decision and continues to believe Tesla's claims are without merit. The case will now return to the High Court for further proceedings, with the ruling potentially affecting how automakers license essential 5G technology in the UK market. The $32-per-vehicle figure Avanci is seeking may sound modest in isolation, but multiplied across millions of vehicles and stacked alongside other licensing fees, it adds up significantly for the automotive industry.