Friday, August 15, 2014

Tesla opens patent portfolio

Tesla Motors, the electric vehicle manufacturer based here in the Bay Area, known for its Roadster and Model S cars, announced that it "will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology." In the announcement, CEO Elon Musk writes:

Technology leadership is not defined by patents, which history has repeatedly shown to be small protection indeed against a determined competitor, but rather by the ability of a company to attract and motivate the world’s most talented engineers. We believe that applying the open source philosophy to our patents will strengthen rather than diminish Tesla’s position in this regard.

The exact details haven't yet been announced, but it certainly looks generous. Tesla has 203 patents on its batteries and electric vehicles. Another 280 patent applications have been filed. The earliest patent expires in 2026.

I think this is a surprise to a tech world with patent trolls and smartphone patent wars. However, it's not completely unusual.

I suspect that by "good faith", Musk means that the patents will be used for defensive purposes. In other words, the patents would be a deterrent. If an entity sues Tesla, they open themselves to a counter-lawsuit by Tesla. Tesla, like many other tech companies, might not see significant value in their patents "offensively", but rather as protection against lawsuits from competitors or trolls.

Along similar lines, Twitter, through its Innovator's Patent Agreement, promises its employees not to use patents they develop for the company offensively without their permission.

Or perhaps Tesla is trying a strategy similar to Google with Android. By giving away Android, Android gained market share faster, and Google expanded the market for its core product, advertising. Tesla would benefit from more charging stations, for example. Aaron Levie, CEO of cloud storage company Box, observed:

By opening its patents, Tesla rightly realizes it’s better to be the best product in a large industry than the only product in a niche one.

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