InterDigital and Avanci Win Bid to Dismiss Tesla London Lawsuit

U.S. technology firm InterDigital and a patent licensing platform won their bid to throw out a London lawsuit by Tesla, which was seeking a patent license ahead of the automaker’s launch of 5G vehicles in Britain.

Elon Musk’s company sued InterDigital and Avanci – which licenses patents from multiple owners, largely for automotive uses – at London’s High Court in 2023.

Tesla’s Intentions and Legal Actions:

Tesla wanted the court to determine the fair, reasonable, and non-discriminatory (FRAND) terms of a license for Tesla to use patents owned by patent holders, including InterDigital, which Avanci licenses. Tesla’s lawyers said in court filings for a hearing in May that the company “plans imminently to launch 5G vehicles in the U.K.”.

InterDigital and Avanci, however, asked the court to throw out Tesla’s bid for a ruling on FRAND terms for a license. The High Court ruled in their favor on Monday, with Judge Timothy Fancourt saying in a written ruling that Tesla’s bid for a license must be thrown out. Still, Tesla’s claim to revoke three of InterDigital’s patents can continue.

Implications for Tesla:

The decision means that while Tesla will not receive a court-determined FRAND license, it can still pursue its claim to revoke certain InterDigital patents.

This ruling could impact Tesla’s timeline for launching 5G vehicles in the U.K., as it may need to negotiate licensing terms directly with InterDigital and Avanci.