Tesla back in court after 5G patents licence case was thrown out

Tesla is back in English court this week as it aims to overturn a ruling that kicked out a patent licence lawsuit for the use of 5G in its cars.

Elon Musk’s carmaker, the world’s largest manufacturer of electric vehicles, sued a Texan-based company that provides licensing of patents, Avanci, and US technology firm, InterDigital, at the English High Court in 2023.

Tesla was seeking a patent licence, a legal agreement, for the use of 5G technology capability in its cars. The car giant claimed it needed a 5G licence from the Avanci platform for the worldwide use of 5G connectivity.

The carmaker, which manufactures cars with up to 4G capability, already had a worldwide licence to the 2G, 3G and 4G standard-essential patents (SEPs) in the Avanci pool.

However, there were disagreements between Tesla and Avanci as to the appropriate rate.

Tesla argued that Avanci had to license on fair, reasonable and non-discriminatory (FRAND) terms, but Avanci disagreed.

In court, the defendants argued that the patent claim of Tesla is not ‘real’ but merely a “jurisdictional hook and an abuse of process”.

The court did not accept Tesla’s argument as it did not consider that there were serious issues to be tried against either Avanci or InterDigital.

The Intellectual Property Enterprise Court dismissed Tesla’s case and made a costs order against the giant.

Tesla was also seeking to revoke three of InterDigital’s UK designated patents, which are in the Avanci 5G Pool, and to declare them as invalid.

Today the electric vehicle giant is back, this time at the Court of Appeal, as it aims to overturn the judge’s decision.

The parties will be before the Lord Justices over Monday and Tuesday, with a reserved judgment.