Gains Legal Momentum After UK Supreme Court Revives 5G Patent Case

TLDR

• Tesla wins UK Supreme Court fight over 5G patent licensing dispute

• Court revives Tesla’s FRAND claim against InterDigital and Avanci

• Case returns to the High Court without setting a final license fee

• TSLA stock falls 1.39% despite the favorable legal ruling

• Tesla keeps 11,509 Bitcoin while Dogecoin payments remain limited

Tesla (TSLA) fell 1.39% to $308.69 after surrendering early gains, even as the UK Supreme Court revived the company’s lawsuit over 5G patent licensing. The ruling allows Tesla to continue seeking a court determination on fair licensing terms for standard-essential patents used in connected vehicles. The decision returns the case to the High Court without deciding the final licensing fee.

Tesla, Inc., TSLA

UK Supreme Court revives Tesla’s FRAND licensing challenge

Tesla secured a legal victory after the UK Supreme Court overturned earlier decisions that blocked part of its patent licensing lawsuit. The ruling restores Tesla’s request for an English court to determine fair, reasonable and non-discriminatory licensing terms. The case now returns to the High Court for further proceedings.

The dispute centers on patents required for 5G-enabled vehicles under standards developed by the European Telecommunications Standards Institute. InterDigital owns several of those standard-essential patents and licenses them through Avanci’s 5G platform. Avanci pools patents from multiple owners and offers a single license to vehicle manufacturers.

Tesla challenged the platform’s licensing model after preparing to launch 5G-enabled vehicles in Britain during 2023. The company argued that Avanci’s $32 per vehicle platform license did not satisfy FRAND obligations. The Supreme Court ruled that patent owners cannot avoid FRAND commitments by placing patents into licensing pools or platforms.

Background of the dispute and market reaction

The High Court rejected Tesla’s request for a FRAND determination during 2024 after InterDigital and Avanci challenged that claim. However, the court allowed Tesla to continue separate claims questioning the validity of three InterDigital patents. Tesla appealed the FRAND ruling after the Court of Appeal largely upheld the earlier decision.

The Supreme Court concluded that English courts may consider FRAND terms for patents offered through licensing platforms. The decision does not determine the final licensing rate or require Avanci to change its existing platform fee. Instead, it restores Tesla’s opportunity to argue that the current licensing terms fail to meet FRAND standards.

Avanci opposed Tesla’s position throughout the litigation and maintained that the claims lack merit. The legal dispute will continue before the High Court after the Supreme Court’s decision. The outcome could influence future licensing negotiations involving connected vehicle technology in Britain.

Tesla keeps Bitcoin holdings unchanged despite legal progress

Tesla’s legal success remains separate from its cryptocurrency strategy and financial reporting. The company retained 11,509 Bitcoin throughout the second quarter without making additional purchases or sales. Falling cryptocurrency prices reduced the reported value of those holdings and created a $112 million after-tax accounting loss.

Bitcoin traded near $83,000 at the beginning of the quarter before declining to around $58,000 by late June. Despite that decline, Tesla maintained its long-term Bitcoin position established after its major reduction during 2022. The company did not adjust its digital asset strategy during the reporting period.

Tesla also continues supporting Dogecoin only for eligible merchandise purchased through the Tesla Shop. The company has not introduced Dogecoin payments for vehicle purchases despite earlier comments from Chief Executive Elon Musk. Therefore, the UK patent ruling advances Tesla’s connected vehicle plans without changing its cryptocurrency policies or digital asset holdings.