"Introduction" [2017] ELECD 521; in Contreras, L. Jorge; Jacob, Meredith (eds), "Patent Pledges" (Edward Elgar Publishing, 2017) 1

Book Title: Patent Pledges

Editor(s): Contreras, L. Jorge; Jacob, Meredith

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781785362484

Section Title: Introduction

Number of pages: 4

Extract:

Introduction1
In 2014, Elon Musk, the outspoken founder of Tesla Motors, surprised
the automotive industry by pledging that his company would no longer
"initiate patent lawsuits against anyone who, in good faith, wants to use
our technology."2 Tesla's announcement prompted a flurry of media and
industry attention. But most importantly, six months later it prompted
automotive giant Toyota to pledge that it, too, would permit the royalty-
free use of nearly 5,700 Toyota hydrogen fuel cell patents.3
It is commonly believed that Tesla and Toyota elected to sacrifice
otherwise valuable patent assets in order to pave the way for the fledgling
electric vehicle industry, and to ensure that their own vehicle platforms
remained integral to the development of this industry. But making such
"patent pledges" is not unique to the electric vehicle industry. Beginning
in the 1990s, large firms in the computing and software industries began
to champion open source code platforms such as Linux and Android.
They demonstrated that business models based on tight control over
intellectual property are not the only viable pathways to innovation and
product development. To support the growth of these emerging open
source platforms, firms like IBM and Google each pledged not to assert
hundreds of patents against open source products.4 In recent years, the
number of firms venturing into this new ground has grown. For example,
Monsanto, the world's leading producer of genetically modified seeds,
has publicly committed not to enforce its patents against farmers

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