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ARTICLE · 23 JULY 2014

Tesla Can Keep Its Patents

Tesla made news a few weeks ago by offering a "license" to their intellectual property.

United StatesIntellectual Property

Tesla made news a few weeks ago by offering a "license" to their intellectual property. Specifically, Tesla indicated on their web site "Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology." Some have applauded Tesla for sharing their technology. However, the market would benefit more if they maintained their patents and focused on innovation.

Patent rights and patent licenses are complicated. Tesla's statement — like the open-source model it references — raises many questions, causing ambiguity and uncertainty. [Free for All: Tesla Motors Makes Electric Car Patents Open Source]

As a lawyer, I'm trained to think about potential scenarios and how they may harm my clients. For example, who is protected by this "license?" Suppose XYZ motor company, a competitor of Tesla, uses some of Tesla's technology to create a new type of engine that starts to push Tesla out of the market. XYZ could then further sue Tesla on

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