Giving away your patents? Sometimes it actually makes you strong
In a series of blog posts, Marco Coolen gives an insight into his work as a Dutch and European patent attorney at AOMB.
Published on October 12, 2025
Hyundai, Kia, BMW, Toyota, Volkswagen, Audi, Porsche, Citroen, Fiat, Chrysler all following Tesla. .
Marco, a patent attorney at AOMB since 2013, shares his expertise on IO+ about patents—how they work, why they matter, and when they lose their value.
If you have worked hard on an innovation, it sounds almost absurd to open your patents to others. Giving free rein to the competition? There goes your lead! Yet Elon Musk proved with Tesla that it can sometimes be exactly the right strategy.
More than 10 years ago, Elon Musk announced that some of Tesla's patents would be made available as open source. Free for competitors, but – and this is crucial – only under a number of smart conditions:
- No counterfeiting of Tesla itself.
- No lawsuits over each other's technology.
With these simple rules, Musk forced his competitors not into court, but to the negotiating table. Want to use the patents? Fine. But then you play by Tesla's rules.
Marco Coolen, photo © Bart van Overbeeke
The result: market leadership and standardization
Ten years later, we can really see how powerful that move was. Tesla's North American Charging Standard (NACS) is now widely accepted.
Car brands such as Hyundai, Kia, BMW, Toyota, Volkswagen, Audi, Porsche, and Stellantis have joined in. The original Tesla technology has become the dominant standard for electric vehicles in North America.
By sharing some of its patents, Tesla attracted the market:
- More compatible cars.
- Larger charging networks.
- Faster acceptance of electric driving.
And Tesla itself? It remains the leading provider of charging stations, with all the associated benefits.
Economies of scale in the supply chain
The benefits are not limited to the consumer side.
Tesla initially had few suppliers for some components (such as battery packs and inverters). Small volumes keep prices high. But by opening up patents, you encourage the market to adopt that technology widely.
- More demand from suppliers.
- Higher production volumes.
- Lower costs for everyone.
- And Tesla benefits from those economies of scale.
The World of Patents
Dutch and European patent attorney Marco Coolen (AOMB) gives us a better understanding of the world of patents. How do they work, why are they important, but also: when do they lose their usefulness?
How can you apply this as an entrepreneur?
You don't have to be Elon Musk to learn from this strategy. Even in SMEs, you can selectively open up patents to strengthen your position:
- Create standards: If you are the starting point of a shared standard, you remain the logical partner for further development.
- Strengthen your chain: If multiple parties use your technology, your cost price decreases and your market power grows.
- Build an ecosystem: Partnerships based on shared technology are often stronger than pure exclusivity.
Important: do it consciously. Never share everything indiscriminately, but choose carefully which patents you open up and under what conditions.
In short, sharing can be more powerful than protecting
Patents are not only intended to exclude competitors. Used wisely, they can also accelerate collaboration and growth.
Controlled sharing can sometimes create more value than carefully shielding everything. So don't just think in terms of protection, but also in terms of strategically influencing your market.
Sometimes sharing a patent is simply the fastest route to market leadership. Tesla has done it. Perhaps it is also the perfect lever for your business.