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Patent Pledge
On June 12, 2014, Tesla announced that it will not initiate patent lawsuits against anyone who, in good faith, wants to use its technology. Tesla was created to accelerate the advent of sustainable transport, and this policy is intended to encourage the advancement of a common, rapidly-evolving platform for electric vehicles, thereby benefiting Tesla, other companies making electric vehicles, and the world. These guidelines provide further detail as to how we are implementing this policy.
Tesla’s Pledge
Tesla irrevocably pledges that it will not initiate a lawsuit against any party for infringing a Tesla Patent through activity relating to electric vehicles or related equipment for so long as such party is acting in good faith. Key terms of the Pledge are explained below.
Definition of Key Terms
"Tesla Patents" means all patents owned now or in the future by Tesla (other than a patent owned jointly with a third party or any patent that Tesla later acquires that comes with an encumbrance that prevents it from being subject to this Pledge). A list of Tesla Patents subject to the Pledge will be maintained at the following URL: https://www.tesla.com/legal/additional-resources#patent-list.
A party is "acting in good faith" for so long as such party and its related or affiliated companies have not:
- asserted, helped others assert or had a financial stake in any assertion of (i) any patent or other intellectual property right against Tesla or (ii) any patent right against a third party for its use of technologies relating to electric vehicles or related equipment;
- challenged, helped others challenge, or had a financial stake in any challenge to any Tesla patent; or
- marketed or sold any knock-off product (e.g., a product created by imitating or copying the design or appearance of a Tesla product or which suggests an association with or endorsement by Tesla) or provided any material assistance to another party doing so.
Transfer of Tesla Patents
Should Tesla ever transfer a Tesla Patent to a third party, it will do so only to a party that agrees, by means of a public declaration intended to be binding on such party, to provide the same protection that Tesla provided under the Pledge and to place the same requirement on any subsequent transferee.
Legal Effect
The Pledge, which is irrevocable and legally binding on Tesla and its successors, is a "standstill," meaning that it is a forbearance of enforcement of Tesla’s remedies against any party for claims of infringement for so long as such party is acting in good faith. In order for Tesla to preserve its ability to enforce the Tesla Patents against any party not acting in good faith, the Pledge is not a waiver of any patent claims (including claims for damages for past acts of infringement) and is not a license, covenant not to sue, or authorization to engage in patented activities or a limitation on remedies, damages or claims. Except as expressly stated in the Pledge, no rights shall be deemed granted, waived or received by implication, exhaustion, estoppel or otherwise. Finally, the Pledge is not an indication of the value of an arms-length, negotiated license or a reasonable royalty.
What this pledge means is that as long as someone uses our patents for electric vehicles and doesn’t do bad things, such as knocking off our products or using our patents and then suing us for intellectual property infringement, they should have no fear of Tesla asserting its patents against them.
