Elon Musk recently reminded his Twitter followers that all of Tesla’s patents have been open since 2014. To put it another way, literally any company in the world is at liberty to copy each Tesla vehicle’s underlying technology, free of charge. That approach is radically different from Apple’s.
Did Musk open his company’s patents out of the goodness of his heart? That seems to have been part of his motivation; he appears to sincerely believe that releasing his company’s patents will allow for the creation of more electric cars, which would ultimately help reduce the impact of climate change.
But as Musk explained in his 2014 blog post, he also believes opening Tesla’s patents is good business. He believes that more manufacturers creating electric cars will ultimately help expand the market for electric vehicles, leading to more business for both Tesla and its competitors.
Perhaps even more importantly, Musk also said he doesn’t believe that intellectual property is a defining factor in a company’s success. From his blog post:
“Technology leadership is not defined by patents, which history has repeatedly shown to be small protection indeed against a determined competitor, but rather by the ability of a company to attract and motivate the world’s most talented engineers. We believe that applying the open source philosophy to our patents will strengthen rather than diminish Tesla’s position in this regard.”
There’s quite a bit to unpack here.
Why would great engineers, not patented technology, be the main thing that helps a company compete in the market?
Think about it for a second. If your company’s ideas are great, but you don’t have talented people to implement them, does it really matter?
Musk seems confident that even if other companies adopt Tesla’s underlying technology, their engineers won’t implement it as well as Tesla does, and therefore won’t threaten Tesla’s position in the market.
In other words, no matter how much access other companies have to Tesla’s technology, they’ll never be Tesla.
Unlike the leadership at Apple, Musk believes stellar engineering, not unique features, is enough to set a company’s products apart from the competition and delight customers.