All Our Patent Are Belong To You

Last year Elon Musk announced in a blog post that his electric car company, Tesla, would permit anyone to use their patented technologies “in the spirit of the open source movement.”

“If we clear a path to the creation of compelling electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are acting in a manner contrary to that goal. Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology.”

This was an interesting decision. I think that it may have more to do with trying to jump start an electric vehicle industry rather than help potential competitors or saving the world. Electric cars have such a small market share that I think this attempt to incentivize others to enter the industry would not markedly increase direct competition with Tesla, but against internal combustion cars in sectors of the market that Tesla doesn’t serve (everything but luxury).

One thought on “All Our Patent Are Belong To You

  1. I also found this to be an interesting strategy and, as the article below notes, any negative effect on Tesla’s business from this move is not likely to be substantial. The good faith limitation it imposes on others using its patents will prevent those companies from producing what are essentially knockoffs of its cars. Tesla will also continue to protect the trade secrets and processes that differentiate it from competitors.

    Many of Tesla’s patents relate to its electric powertrains, and this announcement will also make the tech needed to build charging stations for its cars more available. All in all, this is a low risk way to get some favorable publicity. I agree with James that it is meant to be a catalyst for the electric car industry. Increasing the overall market share of electric car companies seems to be the goal. It will be interesting to see how other competitors react, including major car companies that already have their own hybrid/electric car brands and technology.

    http://www.latimes.com/business/autos/la-fi-hy-elon-musk-opens-tesla-patents-20140612-story.html#page=1