IP Litigation in the Automotive Sector: From Engines to Algorithms

Software, SEPs and the New IP Landscape 

Modern vehicles are increasingly software-defined, with multiple interdependent modules governed by copyright, patent, and licensing frameworks. As software becomes central to vehicle functionality, ownership, interoperability and standardisation have taken centre stage. Standard-Essential Patents (SEPs) covering 4G/5G communications and vehicle-to-infrastructure connectivity have become key focal points across supply chains. 

Based on Murgitroyd’s (2024) emphasis on the central role of code in enabling key vehicle functions, software-focused IP portfolios are set to grow in their already significant value within the automotive sector. Anthony Del Monaco, Kara Specht and Kathryn Judson from Finnegan in Managing IP (2022) note that the rapid adoption of AI and digital technologies has introduced new IP risks and uncertainties, making forward-looking, comprehensive strategies essential. These risks increasingly involve patent eligibility, AI inventorship and trade-secret misappropriation, and companies that fail to integrate digital assets into coherent protection frameworks face a higher likelihood of disputes and commercial setbacks. 

The prevalence of SEPs illustrates how technical innovation and legal frameworks are deeply intertwined. Organisations capable of bridging these domains are better equipped to manage disputes, unlock commercial opportunities and anticipate litigation exposure while fostering collaborative innovation. This dynamic is reflected in high-profile disputes shaping the global automotive IP landscape. 

High-Profile Litigation and FRAND Challenges

The rise of digital innovation has contributed to increasingly intricate patent litigation. For example, landmark cases such as Nokia v. Daimler (2019–2021) and Continental v. Avanci show responsibility for obtaining SEP licences can become contested along the supply chain. At the European level, the Unified Patent Court’s Mannheim Local Division added a new dimension: in November 2024 it issued a landmark decision, clarifying obligations on FRAND licensing under SEPs in line with the framework set out by Huawei v. ZTE (IP Update, 2024). 

In response to these pressures, leading automotive players are re-engineering their IP governance and litigation strategies to balance innovation with legal certainty and risk management.  

Strategic Responses and Emerging Technologies 

Automotive companies are responding with increasingly sophisticated and multi-layered IP strategies. Murgitroyd (2025) highlights the rising strategic importance of IP rights in software architectures, operating systems, and AI models, while UnitedLex (2024) argues for an enterprise-wide IP strategy reset to address the convergence of data, software, and connectivity. These sources suggest that digital and AI-driven assets must be integrated into broader IP governance frameworks to mitigate uncertainty and pre-empt costly disputes (Managing IP, 2024). 

Innovation in the automotive sector continues to present both opportunity and conflict. Industry analyses indicate that next-generation battery systems, synthetic fuel technologies and AI-based vehicle control systems will generate significant IP in areas such as thermal-management, catalysis, advanced machine-learning, cybersecurity and blockchain for connected vehicles. (Murgitroyd, 2025; Sagacious Research).  

Looking Ahead: IP as a Driver of Industrial Power

The shift from mechanical to software-defined innovation demonstrates a broader truth: intellectual property is now central to industrial power. Companies that fail to strategically secure and manage these assets risk litigation exposure and competitive disadvantage. FRAND rulings, UPC oversight, and concentrated patent ownership will continue to shape automotive innovation and mobility markets for the next decade. 

In this environment, the ability to protect, govern, and leverage IP effectively increasingly depends on having the right people in place. At Adamson & Partners, we help clients identify and place exceptional in-house IP, legal, and compliance professionals who can translate technical and legal insight into strategic advantage, ensuring that innovation drives long-term competitive success.

This article represents Part 1 of our exploration of IP and legal challenges in the automotive sector. In Part 2, we will feature an exclusive interview with a senior leader in the legal field, providing first-hand insights into how organisations are responding to these pressures and which skills and strategies are defining success. Stay tuned for practical perspectives and expert guidance in the next instalment.