BUSINESS

Brazil Court Bars Geely From Activities Tied to Disputed Patent

Published: Mar. 27, 2026 6:08 p.m. GMT+8

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Geely’s booth at an auto show in Brazil. Photo: VCG

A Brazilian court has issued a preliminary injunction against Zhejiang Geely Holding Group Co. Ltd. over a patent dispute, barring the Chinese automaker from commercial activities related to the disputed technology and threatening sales of several models in the country.

The Rio de Janeiro state court granted the order on Wednesday at the request of Japanese patent licensing firm IP Bridge Inc., giving Geely 10 days to prove compliance or face a daily fine of about $4,000, up to a maximum of $115,000.

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A Brazilian court issued a preliminary injunction against Geely over a patent dispute, threatening its vehicle sales and requiring compliance within 10 days or face fines up to $115,000.
The dispute involves standard essential patents held by IP Bridge, with similar lawsuits against Geely and other Chinese automakers, including BYD, in Brazil and Europe.
Avanci, a patent licensing platform, pressures Chinese automakers to join its pool, with most global automakers already participating except for Chinese firms.

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Who’s Who

Zhejiang Geely Holding Group Co. Ltd.: Zhejiang Geely Holding Group Co. Ltd. is a Chinese automaker facing a preliminary injunction in Brazil over a patent dispute. The injunction, stemming from a lawsuit by IP Bridge Inc., bars Geely from commercial activities related to the disputed technology and threatens sales of several models. Geely stated it is actively evaluating and handling the situation. The company is also facing similar legal challenges in Europe from Nokia Oyj.

IP Bridge Inc.: IP Bridge Inc. is a Japanese patent licensing firm. It recently secured a preliminary injunction in a Brazilian court against Zhejiang Geely Holding Group Co. Ltd. This action is part of a broader global patent battle, as IP Bridge has also targeted other Chinese automakers like BYD and Great Wall Motor. IP Bridge is a licensor for Avanci Platform International Ltd., which pools standard essential patents (SEPs).

Nokia Oyj: Nokia Oyj (Nokia company) is a Finnish multinational telecommunications, information technology, and consumer electronics company. They are involved in intellectual property licensing and are a licensor to the Avanci Platform International Ltd. Nokia has launched patent infringement lawsuits against Geely and its affiliates in Europe.

BYD Co. Ltd.: BYD Co. Ltd. (002594.SZ) is a Chinese automaker that has faced patent litigation abroad. In July 2025, it was subject to a preliminary injunction in Brazil requested by IP Bridge Inc., similar to the one recently issued against Geely. This suggests BYD has been targeted in the global patent battle against Chinese carmakers expanding overseas, specifically for standard essential patents in automotive communication modules.

Great Wall Motor Co. Ltd.: Great Wall Motor Co. Ltd. (601633.SH) is a Chinese automaker that has been targeted by IP Bridge and U.S. patent operators for patent infringement. This is part of a broader trend of legal challenges against Chinese carmakers as they expand globally.

Avanci Platform International Ltd.: Avanci Platform International Ltd. is an American firm that acts as a "patent gatekeeper." It pools thousands of standard essential patents (SEPs) from licensors like Nokia and IP Bridge, then licenses them to automakers. The company charges $20 per vehicle for its 4G package and $32 for 5G. Avanci aims to include more Chinese carmakers in its licensing programs, seeing it as a top goal for 2026. They also launched a Wi-Fi patent licensing platform.

Ericsson: Ericsson is mentioned as one of the licensors whose patents are pooled together by Avanci Platform International Ltd. for licensing to automakers. According to disclosures by Avanci members, Ericsson is one of the companies that has seen four Chinese automakers join the patent pool.

Mercedes-Benz Group AG: Mercedes-Benz Group AG has signed an agreement with Avanci, becoming its first licensee for a new Wi-Fi patent licensing platform. This partnership suggests a potential trend for other automakers, including Chinese companies, to join patent pools to mitigate intellectual property risks as they expand globally.

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