Recently, the First Commercial Court of Rio de Janeiro, Brazil, ruled that BYD infringed IP Bridge's 4G standard-essential patent (SEP) and issued a preliminary injunction (PI). BYD is required to cease using the relevant technology and disclose the number of affected vehicles within five days of receiving the summons. Otherwise, it will face a daily fine of 20,000 Brazilian reais (approximately USD 3,500), with the initial cap on the total cumulative amount set at 600,000 Brazilian reais (approximately USD 107,000). It is understood that the injunction obtained by IP Bridge in Brazil is the first SEP injunction against an automaker issued by a non-German court.

Currently, in May 2025, Sol IP initiated a patent lawsuit against BYD at the Unified Patent Court (UPC). In April 2025, IP Bridge added requests for permanent injunctions in its two cases against BYD filed at the Munich Regional Court.

Given the circumstances of other preliminary injunction cases in Brazil, it is unlikely that BYD will cease sales of its products. Typically, companies would file an appeal and pay temporary licensing fees. However, the court requires submission of compliance reports, and if BYD refuses to comply, it may face severe penalties at the end of the litigation.

It is reported that approximately 85% of vehicles sold in Brazil with the same connectivity features have obtained patent licenses. Based on this situation, it will be more difficult for BYD to raise a FRAND (Fair, Reasonable, and Non-Discriminatory licensing) defense in subsequent Brazilian litigation. Currently, Tesla and BYD are the only two automakers dealing with cellular standard-essential patents (SEPs) through litigation rather than obtaining licenses.