The way I understand this is, Tesla is not giving away their IP. They are just promising not to file lawsuits if other companies copy their patented technology, which is already make public in patent documentation. Also, Tesla would still need to file patents in the future to defend itself from lawsuits.
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There was an old japanese (?) space-invader-like video game which, when you lost, said "All your base are belong to us". It has become somewhat of a meme.
I note that he mentions open source. I wonder if the detail will involve some sort of creative commons license that only allows you to use the patents if you don't sue Tesla for infringement. But, Elon being Elon, I also wouldn't be surprised if he literally means "We won't sue anyone"? That's radical, and I think it has caused part of the price drop after the announcement.
cgiGuy
Active Member
Technically, not giving anything away. Just a pledge to not take legal action on anyone who uses their tech.
cgiGuy
Active Member
Yuri_G
Member
I'm skeptical this is going to make a significant amount of difference for Tesla. The big car manufacturers would still be going against their best interests in building a great EV. The only companies I could see this move influencing greatly are start ups, and having the know how is not even half the battle of becoming a successful car company.
"Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology."
perhaps Tesla will consider an in kind open source technology offering to Tesla from anyone using Tesla's technology to be part of the "good faith" condition above.
perhaps Tesla will consider an in kind open source technology offering to Tesla from anyone using Tesla's technology to be part of the "good faith" condition above.
callmesam
Member
You are wrong on the facts and the law.
1. Tesla did not "give away" their patents.
2. Even if they did "give away" their patents, they are production limited in perpetuity (10+ years). With 100 million cars being sold worldwide, Tesla cannot capture the market alone.
3. There are VERY GOOD business reasons to do exactly what he has done, so you aren't suing for malfeasance (self enrichment) but suing as a "business decision" where only gross negligence would apply (TM is a Delaware Corporation). Elon has repeatedly stated that the world will need 100 gigafactories to supply the world's production of cars.
"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." - Elon Musk (emphasis added)
You may disagree, but to claim that he's breached a fiduciary duty is counterfactual.
There is still an element to that from the top tier ICE makers, but it offers a chance to improve their position and future viability to the ICE makers not at the top. The prospect of one of those second tier companies jumping on Elon's offer will certainly be something the top tier group has to look at, and possibly decide not to idly wait for. There's a chance today has started a domino process even if that may not be clear for years to come.
This is an outstanding move by Elon. As a shareholder and Model S owner I am 100% on board with his decision.
It puts more pressure on the ICE makers to get on the EV trail. It will not negatively impact Tesla's success now or in the future.
It puts more pressure on the ICE makers to get on the EV trail. It will not negatively impact Tesla's success now or in the future.
callmesam
Member
It can't.
Competitors can't use Tesla's technology faster than Tesla can.
If they decide to forgo, then Tesla wins.
If they decide to use, then Tesla AND the world win.
Agree with Sam. It all depends on where you stand. If you go with the Seeking Alpha crowd and perma bears and weep about valuation/car or 2 million cars vs. 35,000 produced....then you will always see Tesla as a footnote, as the company next to the decimal point...as the crumbs.
They now have the chance to be the standard....to be the pie. They are the one-eyed man in the land of the blind and they just offered everyone in the room a transplant...or at least some eyeglasses. They went from being next to the decimal to about the only car on the other side of the decimal. I think Elon changed the prism and we all will win because of it.
One positive solution I see with adoption of Tesla Standards is third-party EV charging drifting to supercharger technology. If you are selling electricity, why on earth would you sell it at a trickle speed when supercharging is what appeals to impatient car drivers? Third-party supercharging would eliminate the short-term problem of charging in big cities without Tesla having to foot the electrical bill for daily charging. China strategy would work much better if others could offer supercharging within population areas.
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The Blue Owl
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