1. Trends and industry insights in automotive SEP licensing

There have been multiple patent lawsuits targeting Chinese automakers this year. In early 2025, licensors within the Avanci platform (including Sol IP and IP Bridge) filed a lawsuit against BYD. Additionally, Nokia initiated legal proceedings against Geely and its brands in July. These cases primarily target Chinese automakers that have not yet joined patent pools and are accelerating their global expansion, showing a clear trend of using litigation to promote licensing agreements.

Until now, more than 60 licensors are included in the Avanci 4G platform, with approximately 120 automotive brands having accepted its 4G licensing terms. In terms of 5G, over 60 automotive brands have signed licensing agreements, with over 80 licensors. As new licensors continue to join, Avanci’s 4G/5G patent coverage now exceeds 90%, gradually becoming the platform as a comprehensive "one-stop" licensing solution. Besides, Avanci is also keeping communication with Chinese automakers outside the platform and a small number of licensors who have not yet joined. Both licensors and licensees perform as a more proactive and open role, with an increasing number of parties willing to accept Avanci’s one-stop licensing solution.

2. Diversified approaches to resolving Automotive SEP disputes

In terms of emerging legal issues in the SEP areas, the justiciability of patent pools and provisional licensing systems are currently under industry scrutiny. Regarding the justiciability of patent pools, in the case of Roku suing Access Advance, the U.S. District Court for the District of Massachusetts declined to determine global royalty rates for the Access Advance patent pool, reasoning that the pool involves patents from different countries and regions, with U.S. patents constituting only a small part. In the case of Tesla suing Avanci, the UK Court declined to determine global royalty rates due to the absence of a contractual relationship between the parties. The case is now pending before the UK Supreme Court. On the contrary, Chinese courts, since the establishment of the "appropriate connection principle," have affirmed their jurisdiction over global royalty cases, further reinforcing this stance in cases such as OPPO suing Sharp. As for provisional licensing systems, UK courts have granted provisional licenses to implementers in multiple cases based on the principles of high degree of confidence and declaration systems.

3. Future outlook and corporate response strategies 

There have been unavoidable issues on intellectual property and licensing in the automotive sector, automakers shall make strategic business decisions between bilateral licensing and platform-based licensing. Avanci’s licensing pricing stems from long-term market communication and feedback instead of  based on complex economic models. The licensing fee structure has been developed after extensive consultations with both licensors and automakers and accepted by most of market participants, reflecting a balance of interests among stakeholders. Avanci includes three objectives: first, to help innovators secure fair returns to support ongoing R&D investments and participation in standard-setting. Second, to provide a predictable licensing alternative to bilateral negotiations for automakers, reducing their SEP-related risks when expanding overseas. Third, to encourage more unlicensed Chinese automakers to efficiently resolve SEP licensing via the platform’s one-stop solution.

Same as international automakers, Chinese automakers also need a process of understanding, communication, and decision-making in addressing SEP licensing. After extensive industry discussions on licensing tiers and licensing fee structures, Chinese automakers are thoroughly evaluating the different options between bilateral licensing and platform-based licensing, resolving licensing issues with greater rationality and pragmatism.

From IP ForeFront

November 27th, 2025