Core Viewpoint - The Brazilian court ruled that BYD infringed on two 4G communication technology patents held by Japanese company IP Bridge, requiring BYD to cease using the technology in its electric vehicles sold in Brazil or face a daily fine of 20,000 Brazilian Reais (approximately 25,800 RMB) [1] Group 1: Legal Proceedings - The court's decision mandates BYD to submit sales data and a compliance plan within ten days, detailing the number of affected vehicles and corrective measures after ceasing the use of the technology [1] - IP Bridge claims that 85% of global car manufacturers have purchased its patent licenses, but BYD has not reached an agreement with them [1][5] - IP Bridge has also initiated at least two patent infringement lawsuits against BYD in Germany [5] Group 2: Impact on BYD - If the injunction is enforced, BYD may need to quickly change its 4G module suppliers or redesign its onboard systems, potentially leading to a large-scale withdrawal of existing inventory [4] - BYD has shown strong performance in the Brazilian market, with sales reaching 8,163 units by June 2025, marking a 53% year-on-year increase, and over 50,000 units sold in the first half of the year, nearing last year's total of 76,000 units [4] - The court's ruling could significantly impact BYD's sales in Brazil and its overall overseas sales strategy for the year [4] Group 3: Industry Context - The situation highlights a trend where some car manufacturers rush to market their products and later pay patent fees, which has led to increased scrutiny and lawsuits from companies like IP Bridge [6] - The coming months are critical for BYD, as it must decide whether to pay the patent fees or find alternative solutions, both of which will require substantial financial and technical resources [7] - This case is indicative of a broader trend in the automotive industry, where complex smart vehicle technologies are likely to lead to more patent disputes in the future [7]