Car maker Tesla filed a $1 billion lawsuit against business partner Matthews International accusing it of stealing dry-battery electrode (DBE) technology trade secrets and using them in patent applications. It “conservatively estimates the damages at over $1 billion.”
In response, Matthews – a Tesla supplier since 2019 based in Pennsylvania – rejected the claim and accused Tesla of an “ongoing effort to bully Matthews and take Matthews’ valuable intellectual property.”
Tesla’s lawsuit was filed on 14 June at the US District Court for the Northern District of California.
The case alleges that Matthews misappropriated confidential information about its DBE manufacturing technology by including it in its own work.
“The result of Matthews’ improper conduct has been both to deny Tesla patent rights to its own technology and, just as troubling, to share with the public, including Tesla’s competitors, high-value technology that would not otherwise have been accessible, leading to direct and serious harm to Tesla and its business,” it went on.
Matthews issued a statement on 17 June that Tesla’s case was “utterly without merit” and was attempting to restrict it from offering its DBE solutions to the market. It will vigorously defend the matter. It said: “Over 25 years ago, before Tesla even existed as a company, our engineers began the development of breakthrough technology that forms the basis of our DBE solutions which streamlines production of lithium-ion batteries and significantly reduces production costs of electric vehicles.
“Five years ago, Tesla came to Matthews seeking engineering solutions and access to our valuable intellectual property, trade secrets and our global engineering talent,” it pointed out.
Matthews said it continues to work with Tesla as a trusted supplier.
In 2022 Tesla CEO Elon Musk hosted US television talk show presenter and comedian Jay Leno in SpaceX facilities in Boca Chica, Texas. He said (video link): “No … we don’t really patent things. Patents are for the weak.”
He went on: “Patents are used as a blocking technique. They’re like using landmines in warfare. They don’t actually help advance things. They just stop others from following you. Most patents are BS.”
Photo: Tesla CEO Elon Musk seeking $1 billion in damages
