Japanese company achieved victory in court against Geely; court defines fine of up to R$604 thousand in case of non-compliance
A Brazilian court issued an injunction against due to a patent dispute, prohibiting the Chinese automaker from commercial activities related to the technology in question and threatening sales of several models in the country.
The state court of Rio de Janeiro granted the injunction on Wednesday (March 25, 2026), at the request of the Japanese patent licensing company, giving Geely 10 days to prove compliance with the decision or face a daily fine of around US$4,000 (R$21,020), which could reach a maximum of US$115,000 (R$604 thousand).
The decision represents the latest escalation in a global patent battle that has targeted Chinese automakers as they expand internationally. IP Bridge sued Geely in Brazil on March 9, based on a standard essential patent used in automotive communications modules.
These patents cover technologies adopted as universal standards by industry bodies, requiring other companies to seek authorization from patent holders to use them.
Geely responded that it is actively evaluating and appropriately addressing the injunction. The automaker stated that it will continue to conduct global patent negotiations based on fair, reasonable and non-discriminatory principles.
Geely also faces similar legal challenges in Europe, where Nokia filed 4 patent infringement lawsuits against the automaker and its affiliates in July 2025, seeking injunctions to stop patent sales.
Other major Chinese automakers, including AEA, have been targeted by IP Bridge and US patent operators. BYD faced a similar injunction in Brazil, requested by IP Bridge in July 2025.
The connection between these lawsuits is an American company called Avanci Platform, a kind of patent guardian that brings together thousands of standards-essential patents from its licensors, including Nokia and IP Bridge. Avanci licenses the patents to automakers, currently charging $20 per vehicle for its 4G package and $32 per vehicle for the 5G package.
An intellectual property industry source said Avanci encourages patent holders to file lawsuits to pressure Chinese automakers to join its licensing platform.
Laurie Fitzgerald, president of Avanci’s vehicle platform, told reporters in December that almost the entire global auto industry was participating in its 4G or 5G licensing programs, with the exception of China, making the inclusion of more Chinese automakers the company’s top goal for 2026.
Four Chinese automakers have already joined the program, according to information released by the companies Nokia and Ericsson, members of Avanci. The intellectual property industry source speculated that BYD is among them, as a series of patent infringement lawsuits against the company have been filed after August 2025.
As Chinese companies proactively expand overseas, they need to manage intellectual property risks comprehensively to avoid business uncertainty, the source said.
With Avanci launching a Wi-Fi patent licensing platform on March 4, with Avanci as its first licensee, Chinese automakers may face additional litigation in this new area, making collective participation in the Avanci pool a likely future trend, the source added.
This was originally published in English by Caixin Global on March 27, 2026. It was translated and republished by Poder360 under mutual content sharing agreement.
