The move is a significant about-face for the startup, taking an opposite tack from its initial strategy and questioning the fierce enforcement of intellectual property in the broader technology industry.
“Tesla Motors was created to accelerate the advent of sustainable transport,” the CEO said in a statement. “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.”
The entrepreneur argues that patents may have served a purpose “long ago,” however they are now too often used to “stifle progress, entrench the positions of giant corporations,” and line the pockets of law firms rather than the actual inventors.
Tesla is said to have initially felt compelled to create patents to prevent big car companies from copying the startup’s technology and using stronger manufacturing and sales resources to crush the newcomer.
“We couldn’t have been more wrong,” Musk admits. “The unfortunate reality is the opposite: electric car programs (or programs for any vehicle that doesn’t burn hydrocarbons) at the major manufacturers are small to non-existent, constituting an average of far less than 1% of their total vehicle sales.”
The CEO believes Tesla’s real competition is not EVs built by competitors, but rather the “flood of gasoline cars” that roll out of factories every day. The company argues that technology sharing will benefit the entire electric-car industry by supporting a “common, rapidly evolving” technology platform.
“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,” Musk concludes. “We believe that applying the open source philosophy to our patents will strengthen rather than diminish Tesla’s position in this regard.”
Tesla may also be hoping that competitors will be encouraged to build more EVs that are powered by batteries built in the company’s upcoming Gigafactory plant. Volume is viewed as a key factor for lower battery prices, which will be necessary for the company to make profit from a mass-market car that sells for around $35,000. The factory aims to produce enough capacity to supply 500,000 vehicles annually.
The company promises to not initiate any patent lawsuits against anyone who, “in good faith,” wants to use the technology. The wording suggests a rival could use Tesla’s drivetrain or battery technology for a new model, but may come under fire for making a Model S clone.
Tesla holds dozens of patents, ranging from electrical systems to structural components and door handles.
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