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Friday, June 13th, 2014

Telsa Opens Patent Portfolio to Spur Electric Rivals

Author:     MIKE RAMSEY
Source:     NASDAQ
Publication Date:     June 12, 2014, 03:59:00 PM EDT
 Link: Telsa Opens Patent Portfolio to Spur Electric Rivals
Stephan:   I can think of nothing comparable within the last 50 years to Tesla sharing its patents. Patents are a corporation's DNA, and companies usually will go to any length spending millions, sometimes, billions of dollars to protect their patents. Just do a Google on the war between Samsung and Apple to see what I mean. Yet Elon Musk the Chief Executive Officer of Tesla Motors feels it is more important to get more electric cars on the road than it is for him and his company to profit from exclusive use of its patents. Quite amazing really, and I take this as possibly very good news. I also think it could turn out to be a smart move financially. The Tesla is a unique vehicle and by making his patents available hopefully other companies will embrace electronic vehicles. That said, I'm not sure they will do so. It will require massive expensive retooling, and will impact profit in the short term. I think that as usual in America immediate profit will trump long term climate change remediation in the form of phasing out carbon energy technology. But I am an optimist, and hope I am wrong.

Tesla Motors Inc. is offering the proprietary technology at the heart of its Model S electric car to any company that wants to build vehicles, and its chief suggested BMW AG already is interested in sharing certain patents.

Chief Executive Elon Musk said in an interview on Thursday the offer is intended to help spur wider development of electric vehicles. Mr. Musk said one topic discussed with BMW executives was sharing Tesla’s technology for rapidly recharging batteries, part of the company’s “supercharger” stations.

The Palo Alto, Calif., maker of $71,000 and up luxury electric cars decided to offer open access to Tesla patents out of frustration that electric vehicles remain less than 1% of new cars and light trucks sold each year.

BMW couldn’t be reached for immediate comment.

Mr. Musk also hinted at another reason for the offer: achieving greater economies of scale. For example, Tesla’s patents for its vehicle Supercharging stations could be shared with other auto makers, which could help Tesla spread costs and more quickly make more stations available.

More manufacturers should use small battery cells, as Tesla does, Mr. Musk said. “That would be one thing I would recommend.” He has outlined plans to build a large battery factory, which […]

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