Tesla has secured a UK High Court win that revives its legal challenge over licensing terms for patents needed to launch 5G-enabled vehicles in Britain.
summary
- Tesla can appeal its claim for a FRAND license v. InterDigital and the Avanci patent platform.
- The proposed license to Avanci was reportedly costed $32 per 5G connected vehicle When the proceedings began.
- Tesla continues to hold on 11,509 Bitcoin Despite recording a quarterly digital assets loss of $112 million.
- Dogecoin remains available for Eligible Tesla Store ProductsBut not to buy vehicles.
Tesla revives UK lawsuit over 5G patents
Britain’s Supreme Court ruled in Tesla’s favor on July 27, overturning previous decisions that blocked part of the carmaker’s lawsuit against InterDigital and Avanci.
Tesla brought the case to the Supreme Court in London in 2023 while it was preparing to introduce cars that support 5G technology in the United Kingdom. The company wants an English court to set the terms that are fair, reasonable and non-discriminatory, or FRAND, under which it can license standard essential patents used in connected vehicles.
InterDigital holds certain patents available through Avanci’s 5G licensing platform. Avanci combines intellectual property from multiple patent owners and offers licenses primarily to vehicle manufacturers.
According to Summary of the UK Supreme Court caseThe cost of licensing the platform was $32 per vehicle when Tesla made its claim. Tesla argued that the rate was not FRAND.
The Supreme Court concluded that patent owners cannot avoid FRAND obligations by placing their patents in a licensing aggregator or platform. The ruling allows Tesla to return to the Supreme Court for further proceedings.
Why did Tesla challenge Avanci’s licensing model?
The Supreme Court denied Tesla’s request for a FRAND ruling in 2024 after InterDigital and Avanci sought to dismiss that part of the lawsuit. However, Tesla was allowed to pursue separate claims challenging the validity of three of InterDigital’s patents.
Tesla then appealed the FRAND decision. A majority of the Court of Appeal upheld the lower court’s ruling, prompting the electric car maker to take the dispute to the Supreme Court.
Organizations including the Computer and Communications Industry Association and the Motion Picture Association stepped in to support the appeal.
The Supreme Court’s decision does not specify the final license price that Tesla must pay. Instead, it applauds the company’s attempt to have English courts consider whether the platform’s license terms meet FRAND obligations.
“We respectfully disagree with today’s decision and continue to believe Tesla’s claims have no merit,” Laurie Fitzgerald, president of Avanci Vehicle, said in a statement reported by the British newspaper The Independent. Reuters.
Tesla stock erases early pre-market gains
Tesla shares initially rose about 0.98% to $316.10 in pre-market trading after the ruling, Yahoo Finance He appears. However, this recovery did not last after the opening bell.
TSLA traded 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 clears one procedural hurdle for Tesla, but the case may take longer to resolve after returning to the Supreme Court. The final outcome may affect the terms under which Tesla uses 5G technology in vehicles sold in Britain.
For US investors, the dispute is also important because both Tesla and InterDigital are US companies. However, the ruling applies to proceedings in England and Wales and does not directly change US patent law.
Tesla holds Bitcoin while Dogecoin payments remain limited
Tesla’s cryptocurrency stance remains separate from the UK patent dispute. Such as crypto.news I mentioned Last week, the company kept its reserves of 11,509 BTC unchanged throughout the second quarter.
Tesla did not buy or sell bitcoin during the three months ended June 30, extending a holding pattern that followed its massive sale of bitcoin in 2022. The decline in cryptocurrency prices resulted in a $112 million after-tax loss on the company’s digital assets during the quarter.
Bitcoin traded near $83,000 at the start of the period before falling to $58,000 in late June. This decline reduced the stated value of Tesla’s remaining cryptocurrency holdings without prompting the company to sell.
Besides keeping bitcoin on its balance sheet, Tesla has also explored a broader role for cryptocurrencies in its business. Tesla CEO Elon Musk Proposed in 2024 The automaker could eventually accept Dogecoin for vehicle purchases, although it has not yet offered a payment option for its cars.
Tesla currently allows customers to do this Use DOGE only for qualifying merchandise Sold through Tesla Store. Thus, the UK ruling bolsters Tesla’s connected car plans but does not change its existing Bitcoin holdings or Dogecoin payment policy.
