Tesla Sparks Electric Vehicle Market

Yesterday, it was reported that Tesla Motors has made the decision to allow anyone to use its patented technology.  Expressing frustration with the evolution of long range electric cars, it hopes that this move will spark innovation.  Tesla allegedly owns about 200 patents in this area, all of which are available for use. Interestingly, this move also coincides with Tesla’s opening of the country’s largest lithium-ion battery plant. There’s speculation that Tesla may be trying to create other customers for its batteries with this bold move. So, what happens if Tesla’s strategy backfires? Will it ever be able to enforce these patents once Pandora’s Box has been opened to allow free, good faith use by all? It seems like a risky decision.

Scott R. Bialecki

Scott Bialecki, a former FTC attorney and IP litigator, is the co-Chair of Sheridan Ross P.C.'s Litigation Group.