BYD, IP Bridge settle 4G SEP dispute

Context: While BYD, the world’s largest electric vehicle maker, manufactures and sells cars equipped with 4G and 5G, it has not historically licensed 4G and 5G standard-essential patents (SEPs). It recently became the target of patent infringement suits by Avanci 4G and 5G licensors Sol IP (May 30, 2025 ip fray article) and IP Bridge (April 2, 2025 ip fray article) in the Unified Patent Court (UPC), German national courts, and the Justiça do Rio de Janeiro (Rio de Janeiro Judiciary, where IP Bridge was granted a preliminary injunction over a 4G SEP: July 12, 2025 ip fray article). IP Bridge has previously taken this approach in the automotive sector, suing Ford over 4G patents, and giving the licensee no option but an Avanci 4G license (which Ford signed up to in May 2022).

What’s new: IP Bridge has withdrawn its dispute against BYD, sources have confirmed with ip fray. Given IP Bridge’s approach in the automotive context, it is unlikely that the two have struck a bilateral license, meaning the Chinese EV maker has signed up to (at least) Avanci’s 4G program.

Direct impact and wider ramifications: Given previous cases in this industry, if BYD only takes a 4G license for now, it could eventually face issues over its use of 5G (which could ramp up following European regulatory approval). BYD’s case is most notably reminiscent of Volkswagen’s, another carmaker that initially took 3G licenses for all its brands and 4G for only a handful (i.e., Audi and Porsche), before it was sued by Acer in December 2021. Volkswagen eventually had to settle and take a 4G license for its entire group four months later. Tesla, which is currently embroiled in a dispute with Avanci over 5G SEPs (July 2, 2025 ip fray article), has a 4G license but has yet to make any 5G cars.