Intellectual Property Strategy Required for Startups from Joining in a New Business Ecosystem to Growing as Large Companies: A Case Study of Tesla

Abstract

This article conducts a case study of Tesla’s intellectual property (IP) strategy to clarify the IP strategy required for startups from joining in a new business ecosystem to growing as large companies. As a result, it was clarified that to establish new businesses quickly, it may be effective for startups with limited own resources to focus on patents for not only core areas developed on their own but also the interface between core and outsourcing areas to collaborate with companies that have a substantial patent portfolio in outsourcing areas and open the interfaces to diffuse their core technologies. In the process of growing into large companies, startups are exposed to stiff competition as competitors try to catch up. Therefore, it is necessary to increase their capability, formulate added value through in-house research and development and design in the outsourcing areas, and apply for patents to increase its competitive advantage. It was further indicated that a pledge of non-exercise of patent rights may be an effective option to avoid being sued for patent infringement. This study is unique in identifying effective IP strategies for startups in terms of outsourcing, diffusion of their technologies, increasing their capability and avoiding patent infringement lawsuits.