Tesla Motors Inc (TSLA) Aggressively Fights These Challenges

Tesla Motors Inc (NASDAQ:TSLA) has been aggressive when it comes to building its company over the last 10 years to the point where it is free of government debt and is the darling of Wall Street and financial media. And not to mention those who have been advocating alternative-energy cars for the last few years. While electric cars are still in their infancy in a relative sense and thus stil very expensive to produce – never mind the hybrids – Tesla has been aggressive  in its research and development to produce cars that go as much as 200 miles on a single charge. And word is there is still more of this innovation on the way.

Tesla Motors Inc (TSLA)In the process of its R&D work, Tesla Motors Inc (NASDAQ:TSLA) has developed a modest but important portfolio of 50 patents, and has applications pending more more 200 additional patents.  But patent litigation can be very difficult, time- and money-consuming. And can you imagine going through some of this difficult and complex cases without a general counsel and relying on in-house attorneys to file your lawsuits and establish your defense? Based on other aspects  of the company’s business model, Tesla is not afraid of being unconventional, and that certainly applies to patent cases, including one that Tesla is placing itself into – by being the first to file suit, not the one filing the response.

Tesla Motors Inc (NASDAQ:TSLA) received a letter from pointSET that was offering a licensing deal for a patent involving the ability for drivers to control the temperature of their cars by remote control. PointSET, which claims possession of the patent, offered in the letter to sell the license to Tesla for $50o,000. What is Tesla’s reaction? To file a lawsuit against pointSET, effectively saying that not only will the company not pay the licensing fee, but it will challenge the validity of the patent itself, saying that its technology does not match the pointSET patent “either literally or under the doctrine of equivalents.”

Global IP Law Group, the firm which posted the demand letter to Tesla Motors Inc (NASDAQ:TSLA), asked Tesla about its theory that it would use to prove noninfringement. The company refused to give it up. David Berten of Global IP said, “Hey, if you’ve got a good noninfringement argument, we’ll withdraw the letter. Our positions on this are pretty transparent. It’s a little bit of a head-scratcher why Tesla decided to do this.” A case-management hearing on this lawsuit is scheduled for September. What do you think about this approach by Tesla Motors Inc (NASDAQ:TSLA)? Do you think this can work out for the company in the long run, or is this too risky for a long-term legal strategy? Give us your thoughts in the comments section below.

DISCLOSURE: None

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!