Tesla opens patents to rivals in China to expand industry

Want China Times, Staff Reporter 2014-10-19

A Tesla electric car on display at an auto show in Shenyang, Liaoning
province, June 26. (File photo/Xinhua)

Tesla Motors, the world's leading manufacturer of electric vehicles, is allowing the use its patented technology free of cost by any auto manufacturer in China, according to the president of Tesla's China operations Veronica Wu.

Wu reiterated the company's policies on patent use Oct. 14 on the sidelines of an event during which Tesla and China Minsheng Bank announced that they will set up at least 400 charging areas at the bank locations in 20 cities, including Beijing and Shanghai.

"We don't exactly know how many people are making use of Tesla's patents as they don't need to inform us in advance of using them," Wu told the China Youth Daily.

Usually, if someone wants to develop electric cars by adopting technology that is the same as or similar to a patented one, they would need to pay the patent holders first, Wu explained.

In this case, however, manufacturers who use Tesla's patented technology do not violate any patent rights as the automobile giant is willing to let its competitors use its technology free of charge, Wu added.

"Our offer aims to let more people enter the industry with low investment costs spurs development of the electric car market. We believe that the industry is still in its formative stage and needs advanced technology to progress," Wu noted.

Tesla has 400 patents of its core technology under its name, including those of electric car battery management, battery charging systems and the development of new types of batteries.

A patent that stands out among the rest is one that the company was granted in 2010 for a new, innovative new type of hybrid car battery, which allows cars to travel long distances without greatly raising the cost.

Tesla pioneered innovations that lowered the manufacturing costs and increased the safety of battery packs. It is now permitting its biggest rivals to make use of their patents in an attempt to nudge the rest of the automotive market to make advancements in technology related to electric vehicles, Wu remarked.