Recently, the Fifth Commercial Court of the State of Rio de Janeiro, Brazil, issued a preliminary injunction in the case of IP Bridge v. Geely, ordering Geely to cease all commercial activities in Brazil involving the patents at issue. Failure to comply could result in a daily fine of approximately $4,000 (equivalent to approximately 27,560 RMB). Previously, IP Bridge successfully compelled BYD to settle and sign an Avanci license agreement based on a patent of the same family.

On March 25, 2026, Judge Arthur Eduardo Magalhães Ferreira issued an order approving IP Bridge’s request for a preliminary injunction and early preservation of evidence, requiring Geely to cease providing any assistance or facilitation for the commercial exploitation of the Brazilian patent in question (Patent No. PI 0908287-5). The injunction requires Geely to provide proof of compliance within 10 days; otherwise, it will face a daily fine of approximately $4,000 (equivalent to approximately 27,560 RMB), with an initial cap of approximately $115,000.

The ruling drew heavily on precedent established by the same court in the IP Bridge v. BYD case. The court noted that the patent at issue in this case belongs to the same patent family as the one in the BYD case, and that in the BYD case, the court had previously confirmed the patent’s validity and standard-essential nature. Based on considerations of judicial consistency and efficiency, this precedent holds significant reference value for the present case.

IP Bridge pointed out to the court that over 88% of the Brazilian automotive market has obtained licenses, and that IP Bridge and the Avanci platform had engaged in licensing negotiations with Geely for more than two years without success, making Geely one of the few automakers in the Brazilian market operating without a license. In its ruling, the court accepted IP Bridge’s arguments, finding that the patent holder had fulfilled its FRAND obligations, while Geely’s conduct constituted a classic case of “patent hold-out.”

Although Geely had the opportunity to raise a FRAND defense, the panel, after a comprehensive assessment, concluded that given IP Bridge’s thorough factual submissions and Geely’s failure to demonstrate good faith in seeking a license, it was no longer reasonable to continue allowing Geely to sell the relevant products in the Brazilian market without a license. The injunction will remain in effect until Geely demonstrates full compliance with the ruling or the parties reach a licensing agreement, meaning that if Geely does not take action promptly, its sales in the Brazilian market will face a complete halt.

Regarding the scope of the injunction, the judge explicitly listed three Geely models (Geely EX5 Pro, Geely EX5 Max, and Geely EX2 Max) and two connectivity modules, but also emphasized that the injunction covers any other Geely models that infringe in the same manner, including future models. Notably, Geely’s Volvo and Polestar brands have already obtained a license from Avanci and are therefore not covered by this injunction.

Meanwhile, Geely still faces pending lawsuits filed by Nokia at the Unified Patent Court and the First Regional Court of Munich, with hearings scheduled for November 2026. Additionally, Sun Patent Trust filed a lawsuit against Geely at the Hamburg Regional Court of the Unified Patent Court late last year.