WILMINGTON, DE — InterDigital Inc. (Nasdaq: IDCC) secured a preliminary injunction against TCL in Brazil in late October, restricting the electronics manufacturer’s use of a widely adopted video compression standard in devices manufactured, imported or offered for sale in the country amid a patent licensing dispute.
The ruling by the 3rd Business Court of the Judicial District of the Capital of Rio de Janeiro requires TCL to refrain from implementing the High Efficiency Video Coding standard, known as HEVC, in devices covered by the order.
The decision strengthens InterDigital’s position in its dispute over licensing fees for technology used to compress and transmit digital video.
The court adopted the findings of an independent expert report it had commissioned, which concluded that TCL infringed two InterDigital patents and that both patents were essential to the HEVC standard.
The expert also determined that InterDigital’s licensing offers complied with fair, reasonable and non-discriminatory terms, commonly known as FRAND obligations.
Those obligations are central to disputes involving standard-essential patents, which cover technology necessary to implement an industry standard. Patent holders that make FRAND commitments are expected to offer licenses under terms consistent with those commitments.
In assessing the companies’ licensing positions, the court found that InterDigital had satisfied its FRAND obligations and noted that TCL’s competing offers were lower by “a different order of magnitude.”
The finding supports InterDigital’s position that its proposed licensing terms were consistent with the obligations governing its patents.
HEVC is a video compression standard used to encode and decode digital video, allowing devices to process video content more efficiently. Its implementation is relevant to televisions and other consumer electronics that support the technology.
The injunction applies to TCL devices manufactured, imported or offered for sale in Brazil that implement the standard, potentially affecting the company’s ability to supply products using HEVC in that market while the order remains in effect.
InterDigital develops and licenses wireless, video and artificial intelligence technologies, with patent licensing forming part of its commercial operations.
Josh Schmidt, InterDigital’s chief legal officer, characterized the ruling as support for the company’s licensing position.
“We welcome the Rio court’s decision and call on TCL to take a license, like its competitors, that fairly values our portfolio,” Schmidt stated.
The preliminary injunction gives InterDigital additional leverage in its effort to secure a licensing agreement with TCL.
The ruling also underscores the commercial consequences of standard-essential patent disputes, particularly when courts impose restrictions on products that rely on contested technology.
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