Context: InterDigital brought patent infringement proceedings against TCL’s Brazilian entities before Rio de Janeiro’s 3rd Business Court over patents declared essential to the H.265/HEVC video compression standard. The dispute followed licensing negotiations dating back to 2018, during which the parties failed to reach an agreement on FRAND terms.
What’s new: The court granted InterDigital a provisional injunction against TCL, ordering it to disable the disputed HEVC decoding functionality in covered devices sold in Brazil. The court also rejected TCL’s request for a Brazil-only interim license, finding preliminary support for InterDigital’s FRAND compliance while questioning TCL’s willingness to conclude a license.
Direct impact: TCL must disable the disputed HEVC decoding functionality in covered devices manufactured, imported, or offered for sale in Brazil within 15 days of service of the decision, or face a daily fine of BRL 50,000 ($9,085), initially capped at BRL 1 million ($181,700). TCL may continue selling devices with the functionality disabled, while a licensing agreement with InterDigital would bring the injunction to an end.
Wider ramifications: The decision offers an indication of how Brazilian courts may approach SEP disputes involving prolonged unlicensed use and contested FRAND terms. The court’s rejection of a Brazil-only interim license and UK-style confidentiality arrangements also illustrates potential procedural and jurisdictional differences, although the ruling is provisional and its broader influence remains uncertain.
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Counsel
InterDigital is being represented by Licks Attorneys’ Rodolfo Barreto, Bruno Falque, Amanda Terra, and Élcio de Lacerda.