- London’s High Court rejects Tesla’s request for fair licensing terms from InterDigital and Avanci for the launch of 5G vehicles in the UK.
- The court allows Tesla to proceed with its legal action to invalidate three patents held by InterDigital.
OUR TAKE
Tesla’s efforts to secure favourable licensing terms for 5G technology patents have been blocked by a London High Court ruling that dismissed the company’s case against InterDigital and Avanci. The court’s ruling complicates Tesla’s plans to launch 5G vehicles in the UK, and could impact its strategy to become a leader in electric vehicles and AI technologies. While the court rejected Tesla’s request for licensing terms, it allowed the company to proceed with its attempt to invalidate three of InterDigital’s patents. This legal setback comes amid wider challenges for Tesla, characterised by declining sales and profits, which could hamper its innovation and market competitiveness.
—Heidi Luo, BTW reporter
What happened
U.S. technology firm InterDigital and a patent licensing platform, Avanci, on Monday won their bid to dismiss a London lawsuit filed by Tesla. Tesla filed the lawsuit in 2023. The primary objective of the lawsuit was to establish what Tesla considered to be fair, reasonable and non-discriminatory (FRAND) licensing terms.
Specifically, these terms sought to secure patents essential to the integration of 5G technology into Tesla’s upcoming vehicle models in the UK.
Tesla’s lawyers argued at a hearing in May that the company was close to launching these advanced vehicles. However, InterDigital and Avanci challenged Tesla’s application.
The High Court ruled in their favour on Monday, with Judge Timothy Fancourt saying in a written ruling that Tesla’s bid for a licence must be thrown out. However, the court allowed Tesla to proceed with its claim to invalidate three of InterDigital’s patents.
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Why it’s important
This legal outcome is significant as it could delay Tesla’s progress in integrating 5G technology, which is essential for the next generation of smart, connected vehicles. This setback comes at a difficult time for Tesla, which is striving to be at the forefront of both electric vehicles and artificial intelligence technologies in the automotive industry.
According to a Bloomberg report, Tesla has seen a decline in sales and profitability, which amplifies the impact of such legal challenges. The ability to fairly use necessary patents is essential for Tesla to continue to innovate and remain competitive in the marketplace.
The court’s decision potentially slows Tesla’s technological advancements, especially as the company faces broader economic pressures. Moreover, Tesla’s ambitions to be a leader in automotive AI, including self-driving technologies, depend on overcoming such legal and regulatory hurdles.
