On Monday, InterDigital and a patent licensing platform won a dismissal of a lawsuit brought by Tesla (TSLA.US) in the UK’s High Court, which Tesla had been pursuing to obtain patent clearance for its 5G-capable vehicles before launching them in the UK.
Tesla, led by Elon Musk, had sued InterDigital (IDCC.US) and Avanci in 2023 in the UK’s High Court, alleging that the two companies had obtained patent clearances from multiple owners for use mainly in automotive technologies.
Tesla sought a ruling from the court that the Fair, Reasonable and Non-Discriminatory (FRAND) terms would allow Tesla to use some of the patents held by the patent holders, including InterDigital, and obtain clearances from Avanci. Tesla cited the FRAND terms because patents involved in technology standards, such as 5G, are often licensed under FRAND terms to ensure widespread use and fair competition.
Tesla also sought to invalidate three patents held by InterDigital, arguing that they may be invalid or have other legal issues. If successful in invalidating the patents, Tesla could reduce related licensing fees and legal risks.
Tesla’s lawyers said in court filings submitted for a hearing in May that the company “plans to launch 5G cars in the UK immediately”. However, InterDigital and Avanci sought a dismissal of Tesla’s FRAND clearance ruling in the UK’s High Court.
On Monday, the High Court ruled in favor of InterDigital and Avanci, with Judge Timothy Fancourt issuing a written ruling that Tesla’s direct application for a license must be dismissed but that Tesla’s request to invalidate InterDigital’s three patents could continue.
Tesla’s lawsuit against InterDigital and Avanci was primarily aimed at ensuring that it could obtain patent clearances for 5G technology at reasonable costs and in a legal manner, to facilitate the launch of its 5G-capable electric vehicles in the UK. At the same time, by invalidating some of the patents, Tesla hoped to reduce licensing fees and related legal risks. The outcome of the lawsuit partially achieved Tesla’s goals but failed to satisfy Tesla on the determination of FRAND terms.