Tesla wins bid to revive UK 5G patent licensing lawsuit

Tesla won a bid to revive its London lawsuit over 5G patent licensing after the UK Supreme Court ruled on July 27 that the case could go back before the High Court. The dispute centers on Avanci’s $32 per vehicle royalty for a 5G global licence, a rate Tesla has challenged as part of its effort to secure court-determined terms for connected vehicles.

The case matters because modern cars are no longer just mechanical products. Tesla’s vehicles, like those of other automakers, depend on mobile networks for navigation, diagnostics, software updates and other embedded services, which makes cellular patents a growing cost in the auto business. As connected cars spread, the fight over standard-essential patents and FRAND, the fair, reasonable and non-discriminatory licensing standard, has moved from phone makers and network gear suppliers into the automotive sector.

Tesla first sued InterDigital Patent Holdings, InterDigital Holdings, IDAC Holdings and Avanci in London’s High Court in 2023. The case was heard before Mr Justice Fancourt and is cited as [2024] EWHC 1815 (Ch) and [2024] EWHC 1815 (Pat). Tesla later appealed, and the Court of Appeal heard the case on March 6, 2025 before Lord Justice Arnold, Lord Justice Phillips and Lady Justice Whipple in [2025] EWCA Civ 193. The matter then reached the Supreme Court under case numbers UKSC/2025/0058 and UKSC/2025/0058/A.

The Supreme Court’s July 27 judgment, [2026] UKSC 27, held that UK courts have jurisdiction to hear a claim seeking declarations about whether the rates and terms offered for global pools of standard-essential patents are FRAND. Tesla had sought a patent licence ahead of launching 5G vehicles in Britain, making the dispute directly tied to its commercial rollout rather than only to abstract patent doctrine.

Avanci said on July 27 that the court did not decide Tesla is entitled to pay less than competitors, did not decide whether the Avanci 5G Vehicle licence is subject to FRAND, and did not make findings on the licence terms. Avanci said its 5G Vehicle programme continues to operate as usual and that the matter will now proceed to the High Court for further proceedings.

The fight now stands as a test of who captures value in the next generation of connected devices. If automakers are required to pay telecom-style royalties on every connected car, licensing costs could shape pricing, margins and product design across the industry.