Core Viewpoint - The article discusses a recent legal ruling in Brazil against BYD regarding patent infringement related to 4G technology in electric vehicles, highlighting the implications for the company and the broader automotive industry [2][3]. Group 1: Legal Ruling and Implications - A Brazilian court has ruled that BYD's electric vehicles infringe on two patents held by IP Bridge, requiring BYD to cease using 4G technology in its vehicles sold in Brazil within five days of receiving the summons, or face a daily fine of 20,000 Brazilian Reais [2]. - BYD is also required to disclose the number of affected vehicles, but the company claims it has not yet received official notification from the court [2]. - This ruling marks the first non-German court injunction against an automotive manufacturer regarding standard essential patents (SEPs) [3]. Group 2: Market Context and Challenges - Approximately 85% of vehicles sold in Brazil with similar connectivity features have obtained patent licenses, making it more challenging for BYD to argue for a fair, reasonable, and non-discriminatory (FRAND) defense in future litigation [3]. - The article notes that both Tesla and BYD are among the few automakers addressing cellular communication SEPs through litigation rather than obtaining licenses [3].