Tesla has scored an important legal victory in the United Kingdom after the country’s Supreme Court ruled that the electric vehicle maker can continue its challenge over the licensing terms for patents required to launch 5G-connected vehicles in Britain.
The ruling reopens Tesla’s lawsuit against patent owner InterDigital and licensing platform Avanci, allowing an English court to decide whether the licensing fees offered to Tesla meet fair, reasonable, and non-discriminatory (FRAND) standards.
While the decision does not determine the final licensing cost, it marks a significant step forward in Tesla’s efforts to secure more favorable terms for connected vehicle technology.
Tesla challenges 5G licensing fees
The dispute dates back to 2023, when Tesla filed a lawsuit in London’s High Court while preparing to introduce 5G-enabled vehicles in the UK market.
Tesla argued that the licensing terms offered through Avanci’s patent platform were not consistent with FRAND principles, which are designed to ensure fair access to essential technology standards.
At the time the case was filed, Avanci’s licensing program reportedly charged $32 per connected vehicle for access to the required patents.
Tesla believes that rate should be reviewed by the English courts.
Supreme Court sides with Tesla
Britain’s Supreme Court overturned earlier decisions that had prevented Tesla from pursuing part of its FRAND claim.
The judges ruled that companies owning standard-essential patents cannot avoid their FRAND obligations simply by placing those patents into a licensing pool such as Avanci.
As a result, Tesla can now return to the High Court, where the case will continue.
Importantly, the ruling does not decide whether the $32 licensing fee is fair. Instead, it gives Tesla the opportunity to argue its case before the court.
Why the case matters
The patents involved are essential for modern connected vehicles equipped with 5G communication technology.
Avanci licenses patents from multiple technology companies, including InterDigital, through a single platform used by automotive manufacturers worldwide.
Tesla argues that manufacturers should have access to these patents under reasonable licensing terms, while Avanci maintains that its licensing model already complies with international standards.
The outcome could influence how connected vehicle technologies are licensed in the UK going forward.
Legal battle continues
This isn’t the first stage of the dispute.
The High Court previously dismissed Tesla’s request for a FRAND determination while allowing separate challenges involving the validity of several InterDigital patents.
Tesla appealed that decision, but the Court of Appeal largely upheld the earlier ruling.
The Supreme Court has now reversed part of that decision, sending the FRAND issue back for further legal proceedings.
Avanci has said it disagrees with the ruling and continues to believe Tesla’s claims lack merit.
Tesla shares give up early gains
Investors initially welcomed the legal victory.
Tesla shares rose nearly 1% during premarket trading following the Supreme Court’s decision.
However, those gains faded after the U.S. market opened, with the stock later trading around $309, down slightly from its previous closing price.
The mixed reaction suggests investors remain focused on Tesla’s broader business outlook rather than a legal case that may still take considerable time to resolve.
Tesla continues holding Bitcoin
The patent dispute has no impact on Tesla’s cryptocurrency strategy.
The company still holds 11,509 Bitcoin, maintaining the same balance throughout the second quarter.
Although Bitcoin’s declining price resulted in an estimated $112 million after-tax loss on Tesla’s digital assets during the quarter, the company neither bought nor sold any BTC.
Tesla has continued holding its Bitcoin treasury since reducing its position in 2022.
Dogecoin payments remain limited
Tesla’s relationship with cryptocurrency extends beyond Bitcoin.
The company currently accepts Dogecoin (DOGE) as payment for selected merchandise sold through the Tesla Shop.
However, customers still cannot purchase Tesla vehicles using Dogecoin.
CEO Elon Musk has previously suggested that accepting DOGE for vehicle purchases could happen in the future, but Tesla has not announced any plans to introduce that payment option.
Outlook
Tesla’s Supreme Court victory gives the company another opportunity to challenge how 5G patent licensing fees are determined in the UK.
Although the ruling does not settle the dispute or establish a final licensing price, it strengthens Tesla’s legal position as it prepares to expand its connected vehicle offerings.
At the same time, Tesla’s cryptocurrency strategy remains unchanged, with the company continuing to hold its Bitcoin reserves while limiting Dogecoin payments to merchandise purchases rather than vehicle sales.
