InterDigital, Inc. (NASDAQ:IDCC) announced on October 27, 2026, that a Brazilian court has granted a preliminary injunction against TCL in a patent dispute involving High Efficiency Video Coding (HEVC) technology.
The ruling was issued by the 3rd Business Court of the Judicial District of the Capital of Rio de Janeiro following an assessment of two patents asserted by InterDigital.
According to the company, the court adopted the findings of an independent expert report concluding that TCL infringed both patents, that the patents were essential to the HEVC standard and that InterDigital had complied with its fair, reasonable and non-discriminatory (FRAND) licensing obligations.
Under the preliminary injunction, TCL must refrain from implementing the HEVC standard in devices it manufactures, imports or offers for sale in Brazil.
What Has the Brazilian Court Ruled in the InterDigital and TCL Patent Dispute?
The 3rd Business Court in Rio de Janeiro granted InterDigital a preliminary injunction concerning TCL’s implementation of HEVC video compression technology.
The court adopted the findings of an independent expert report commissioned during the proceedings.
According to InterDigital, the report supported its position that TCL infringed two patents involved in the dispute.
The expert also concluded that the patents were essential to the HEVC standard and that InterDigital’s licensing offers complied with FRAND requirements.
The court’s order restricts TCL from implementing the HEVC standard in devices manufactured, imported or offered for sale in Brazil.
The announcement concerns a preliminary injunction rather than a final judgment resolving all aspects of the litigation.
What Is HEVC Technology and Why Is It Relevant to the Dispute?
High Efficiency Video Coding, also known as HEVC or H.265, is a video compression standard used to encode and decode digital video.
The technology enables video data to be compressed for storage and transmission, allowing compatible devices to process video content.
HEVC is used in applications involving televisions, streaming services, consumer electronics and other video-enabled devices.
InterDigital develops and licenses technologies associated with video processing and compression, including patents related to HEVC.
The dispute concerns TCL’s implementation of the standard and whether the company has obtained the necessary patent licences.
Which Patents Were Involved in the Court Proceedings?
The proceedings concerned two patents asserted by InterDigital.
According to the company’s announcement, the independent expert appointed by the Rio de Janeiro court concluded that TCL infringed both patents.
The expert also found that the patents were essential to implementing the HEVC standard.
A standard-essential patent covers technology considered necessary to implement a particular technical standard.
The announcement did not identify the patent numbers or provide detailed descriptions of the individual inventions.
The court adopted the expert’s findings when issuing the preliminary injunction.
What Did the Independent Expert Conclude?
The independent expert report addressed three principal issues in the dispute.
First, it concluded that TCL infringed the two patents asserted by InterDigital.
Second, it determined that those patents were essential to the HEVC standard.
Third, it found that InterDigital’s licensing offers complied with FRAND obligations.
The court accepted the report’s conclusions in granting preliminary relief.
The findings formed the basis of the court’s decision to restrict TCL’s implementation of HEVC technology in the Brazilian market.
What Are FRAND Licensing Obligations?
FRAND refers to fair, reasonable and non-discriminatory licensing terms.
These principles are relevant when companies license patents that are essential to implementing widely adopted technical standards.
FRAND commitments are intended to provide a framework for licensing standard-essential technologies while allowing patent holders to receive compensation for their intellectual property.
In the InterDigital and TCL dispute, the court considered whether InterDigital’s licensing proposals complied with these obligations.
According to InterDigital, the independent expert concluded that its offers met the applicable FRAND requirements.
The court adopted that conclusion.
What Did the Court Say About TCL’s Licensing Offers?
In assessing the licensing dispute, the court compared TCL’s proposals with the offers made by InterDigital.
According to the announcement, the court described TCL’s offers as lower by “a different order of magnitude”.
The statement formed part of the court’s assessment of InterDigital’s compliance with its FRAND licensing obligations.
The announcement did not disclose the monetary value of either company’s licensing proposals.
It also did not provide the specific royalty rates or payment structures under consideration.
Consequently, the financial difference between the competing offers cannot be quantified from the information released.
What Restrictions Does the Injunction Place on TCL?
Under the preliminary injunction, TCL must refrain from implementing the HEVC standard in devices it manufactures, imports or offers for sale in Brazil.
The restriction concerns the use of the relevant video coding technology in devices covered by the court’s order.
The announcement does not state that TCL is prohibited from selling all of its products in Brazil.
Instead, the restriction specifically relates to implementation of the HEVC standard.
InterDigital did not disclose whether the court established a compliance deadline, financial penalties or other enforcement provisions.
The company also did not provide information about any appeal or other legal response from TCL.
What Did InterDigital Say About the Court’s Decision?
Josh Schmidt, Chief Legal Officer of InterDigital, commented on the ruling and the company’s licensing position.
“InterDigital is widely recognized as one of the leading contributors to the HEVC codec which has become such a vital part of how video content is encoded and then decoded on devices like TCL’s,” Schmidt said.
“We welcome the Rio court’s decision and call on TCL to take a license, like its competitors, that fairly values our portfolio.”
The comments reflect InterDigital’s position that TCL should enter into a licensing agreement covering the relevant intellectual property.
The announcement did not indicate that the parties had reached an agreement following the ruling.
Does the Injunction Mean the Patent Dispute Has Been Finally Resolved?
No. The court has issued a preliminary injunction, which is a form of judicial relief granted before a final determination of all issues in a dispute.
The ruling establishes restrictions on TCL’s implementation of the HEVC standard under the terms of the order.
However, the announcement does not confirm that the underlying litigation has concluded.
It also does not provide a timetable for further proceedings or indicate whether TCL intends to challenge the injunction.
Any subsequent changes to the restrictions would depend on further legal developments or other applicable arrangements.
Could TCL Resolve the Dispute Through a Licensing Agreement?
InterDigital has called on TCL to obtain a licence for the relevant HEVC technology.
A licensing agreement could address the use of InterDigital’s patents in TCL products, depending on the terms agreed between the parties and any applicable court orders.
However, the announcement does not establish that negotiations are currently taking place or that an agreement is imminent.
No proposed royalty rate, licensing payment or settlement amount was disclosed.
The possibility of a commercial resolution therefore remains separate from the court’s reported preliminary ruling.
What Does the Decision Mean for InterDigital’s Patent Licensing Business?
InterDigital generates licensing opportunities from intellectual property developed through its research and development activities.
Its technology portfolio includes innovations relating to wireless communications, video compression and artificial intelligence.
The Brazilian court’s decision supports InterDigital’s position in this particular dispute concerning two HEVC-related patents.
However, the ruling does not establish the value of any future licensing agreement or the amount of revenue InterDigital may receive.
The company did not announce a financial settlement, damages award or revised revenue guidance in connection with the injunction.
The direct financial effect of the ruling therefore remains undetermined.
Does the Ruling Affect InterDigital’s Other Technology Licensing Activities?
The announcement specifically concerns the HEVC standard and the two patents involved in the Brazilian proceedings.
InterDigital also develops and licenses technologies used in wireless communications, consumer electronics, connected devices, vehicles and cloud-based services.
Its research activities include cellular communications technologies, Wi-Fi, video processing and artificial intelligence.
The company did not announce any changes to its broader licensing operations as a result of the court’s decision.
The ruling should therefore be considered within the scope of the specific patent dispute rather than as a determination affecting all of InterDigital’s intellectual property.
What Are the Next Developments to Monitor?
Further developments may include any legal challenge to the preliminary injunction, additional court proceedings or a licensing agreement between InterDigital and TCL.
The terms of any subsequent agreement would be relevant to assessing the financial implications of the dispute.
Additional disclosures could also clarify the enforcement arrangements associated with the Brazilian court’s order.
At present, InterDigital has reported a preliminary injunction restricting TCL’s implementation of HEVC technology in Brazil.
No settlement, damages award or final resolution of the litigation was announced.
More About InterDigital
InterDigital is a Nasdaq-listed research and development company founded in 1972.
The company develops technologies relating to wireless communications, video processing, video compression and artificial intelligence.
Its intellectual property is licensed to businesses operating in consumer electronics, telecommunications, connected devices, automotive technology and cloud-based services.
InterDigital’s research portfolio includes innovations used in cellular communications systems, 5G networks, Wi-Fi technologies and video encoding and decoding.
On October 27, 2026, the company announced that a court in Rio de Janeiro had granted a preliminary injunction against TCL concerning two patents associated with the HEVC video coding standard.