Tesla NASDAQ:TSLA shares fell about 2% on Monday even after the company won a UK Supreme Court ruling that revives its lawsuit against InterDigital (IDCC) and patent licensing platform Avanci over the licensing terms for 5G technology.
Tesla filed the case in London's High Court in 2023, seeking a judicial determination of fair, reasonable and non-discriminatory (FRAND) licensing terms for 5G patents held by companies including InterDigital and offered through Avanci. A High Court judge dismissed that claim in 2024, though Tesla's separate challenge to three InterDigital patents was allowed to proceed.
After the Court of Appeal upheld the earlier ruling, Tesla took the dispute to the UK Supreme Court. The court ruled that participation in a patent pool or licensing platform does not remove patent holders' obligations to offer licenses on FRAND terms, sending the case back to the High Court.
Tesla is pursuing the litigation ahead of plans to introduce 5G-enabled vehicles in the UK. Avanci said it disagreed with the ruling and continues to believe Tesla's claims lack merit.