Tesla's true intentions?

In my last blog post, I discussed Tesla Motors opening up its patent portfolio. I mentioned that this generosity is not completely unusual in the tech industry. However, it's still surprising for a public-traded company (i.e., answerable to shareholders) with research in not just software, but also more tangible items like vehicles and their batteries.

Akshay wrote a blog post asking whether Tesla had other motives? He questioned the meaning of CEO Elon Musk's statement that Tesla would "not initiate lawsuits against anyone who, in good faith, wants to use our technology". In his words:

With other, larger companies getting in on the electric car market, Elon Musk hopes they will help him in the building of these super-chargers...Tesla is currently by far the leader...they don't see a significant threat to sharing their technology with other companies because they already have a huge head start, both in brand-recognition in the EV market as well as in quality of product.

I agree. I also agree that Tesla would benefit from competitors using compatible "supercharger" charging station technology, which is currently restricted by the most important Tesla patents.

Later on, Musk himself writes:

We believe that Tesla, other companies making electric cars, and the world would all benefit from a common, rapidly-evolving technology platform

I'd also, however, like to also point out that Tesla probably views their patents defensively (deterrent to opposing patent lawsuits from potential competitors), not commercially. They don't see patent licensing as an important source of revenue, as Nokia does, or a competitive advantage, as Apple does. So, the disadvantages to opening up their patents are minimal. As it stands, they don't really have competitors.

Tesla actually tried and failed to monetize their patents. In 2011, Tesla partnered with Toyota to supply its battery, gearbox, power train, and battery-management software for Toyota's RAV4 EV. At the time, the deal was projected to be worth $100 million. But the deal ended sourly in May 2014. (In fairness, Tesla was more successful in a similar contracts with Daimler's Mercedes-Benz.)

Furthermore, according to Blattberg of VentureBeat, Musk's "good faith" qualifier and lack of legally-enforceable patent license means that nothing legally has changed:

Tesla's patents are not available under some automative [sic] equivalent of an Apache license...It doesn't matter how nonchalant Musk acts -- Toyota, Ford, Honda, and the rest would never knowingly infringe on Tesla's patents without legal documentation that everything is cool.

I suspect this leaves Tesla with flexibility to change its mind or deny the "license" to a particular competitor. In short, Tesla would benefit from encouraging competition that expands the market and charging infrastructure, but isn't completely committed.

Tesla is making a positive step for electric vehicles, though not solely out of goodwill.