TCL challenges InterDigital's AV1 patent as litigation targets hardware manufacturers

Hardware manufacturers are increasingly using the Patent Trial and Appeal Board (PTAB) to neutralize compression patents that underpin modern 4K and streaming services. By mirroring Amazon’s successful strategy, TCL aims to invalidate a fundamental AV1 patent, which could lower royalty pressures for other TV makers like Hisense and Lenovo. For the broader ecosystem, this signals a shift where standard-essential patent (SEP) disputes are no longer just about mobile phones, but now center on the software-defined video stack. The outcome will decide the financial viability of integrating "royalty-free" codecs like AV1 in consumer hardware. Watch for whether the PTAB joins these petitions to consolidate the challenge against InterDigital’s portfolio.

The litigation involving TCL reflects a broader trend of intensified IP pressure on Chinese technology firms. Per Managing IP in June 2026, Chinese companies faced 1,227 new intellectual property lawsuits in the U.S. during the previous year, with nearly half identified as patent infringement disputes. This environment has forced manufacturers to move beyond simple defense; companies increasingly use Inter Partes Review (IPR) and ex parte reexaminations to challenge the validity of asserted patents before they reach trial.

Relatedly, InterDigital has successfully leveraged its video patent portfolio to secure major agreements with other streaming and hardware giants. Per Reuters and Dow Jones in June 2026, InterDigital reached a comprehensive licensing deal with Amazon that covers Prime Video and various devices. That agreement resolved pending litigation and moved remaining rate disputes to binding arbitration. The Amazon settlement was viewed by market observers as a validation of InterDigital's video licensing model, yet the ongoing resistance from hardware manufacturers like TCL and Hisense suggests the industry remains divided on royalty rates for non-FRAND codecs like AV1.

Furthermore, the legal landscape is shifting toward specialized venues. Per Unified Patents in July 2026, the Eastern and Western Districts of Texas continue to handle nearly 37% of patent litigation. However, the Unified Patent Court (UPC) in Europe has emerged as a critical second front for these disputes. InterDigital’s use of the UPC’s Munich Local Division against TCL highlights a strategy of seeking pan-European injunctions, which can exert significantly more leverage during license renewals than localized U.S. district court actions alone.