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Tesla Wins Supreme Court Appeal Over 5G Patent Licensing

The UK Supreme Court has handed Tesla a significant legal victory, overturning lower court decisions that previously barred the automaker from challenging 5G licensing terms. The ruling forces patent platform Avanci and patent holder InterDigital to face a judicial review regarding whether their $32-per-vehicle fee meets fair and non-discriminatory standards.

Tesla Wins Supreme Court Appeal Over 5G Patent Licensing

The dispute centers on Tesla’s 2023 effort to launch 5G-enabled vehicles in Britain. Tesla argued that the licensing fees demanded by the Avanci platform were not consistent with FRAND (fair, reasonable, and non-discriminatory) obligations. While the High Court initially dismissed Tesla’s request for a FRAND determination in 2024, the Supreme Court has now established that patent owners cannot circumvent these obligations simply by pooling their intellectual property into a third-party platform.

Avanci Vehicle President Laurie Fitzgerald stated the company disagrees with the ruling and maintains that Tesla’s claims lack merit. Despite the legal win, the case now returns to the High Court for further proceedings, meaning a final determination on the license rate remains pending. While Tesla shares saw minor volatility following the news, the decision primarily impacts the company's operational flexibility in the UK market rather than its broader corporate strategy.

Separately, the ruling has no bearing on Tesla’s digital asset management. The company confirmed it continues to hold 11,509 Bitcoin, despite reporting a $112 million quarterly loss due to price fluctuations. While CEO Elon Musk has previously hinted at expanding Dogecoin payments to vehicles, the cryptocurrency remains accepted only for specific items within the Tesla Shop.

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