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UK High Court Dismisses Tesla FRAND Rate-Setting Case Targeting Avanci 5G Pool

July 21, 2024

In August 2020, the UK became the first country where courts have asserted the jurisdiction to set the terms of a global fair, reasonable, and nondiscriminatory (FRAND) license to a standard essential patent (SEP) portfolio. Yet while courts there have since found that implementers can seek such FRAND determinations proactively, rather than in response to an infringement claim, no UK court has yet allowed such a rate-setting claim against a patent pool. The UK High Court has now doubled down on this posture, ruling on July 15 that Tesla could not seek a FRAND determination for the entire 5G pool administered by defendant Avanci, LLC, neither through certain claims against Avanci itself or by treating pool licensor InterDigital, Inc. as a “representative” of the other Avanci SEP owners. However, Justice Timothy Fancourt, writing for the court, expressed “some concern” that the applicable law required this “odd” result.


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