Tesla’s Patent Decision

Although the SWOT assignment has passed, I am still intrigued about Tesla’s decision to release their patents.

From a blog post by Elon Musk, “If we clear a path to the creation of compelling electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are acting in a manner contrary to that goal.” This Decision made by CEO Elon Musk Created a great uproar in the auto industry because nothing of the sort has ever been done to such an extent.

In my opinion, there is a significant hidden advantage that Tesla gains through the release of their patents that could be the real reason behind Musk’s bold actions. By Tesla releasing their patents to whoever cares to use them fairly, they are letting the other major car companies absorb the major expenses needed to promote and advertise electric vehicles while they act like the “good guys” from this action. But realistically, Tesla gets free advertising for making the decision to release their patents into the public and they will be seen by the consumer as the first true pioneer of electric vehicle because their technology will be the base of new innovations. This strategic act gives Tesla an amazing reputation with the global market as they remain atop the luxury electric market.

http://www.teslamotors.com/blog/all-our-patent-are-belong-you

 Blog post 01 – Business Ethics

Qatar, a Middle Eastern country, has won the bid for the 2022 FIFA World Cup, despite much controversy. The country received the most votes by the 22 FIFA executive committee members, but after a formal investigation launched by FIFA’s ethics investigator, previously unknown knowledge surfaced. Investigations showed that the President of the Asian Football confederation, Bin Hammam, made payments of $5 million dollars to build support and to secure Qatar’s position as the 2022 World Cup hosts. In the past, the world cup generates hundreds of millions of dollars of revenue and GDP growth for the host nation. This enormous incentive explains Qatar’s corrupt actions.

Qatar, using their seemingly endless wealth from their oil industries, unethically bought their way into a position of power. This position gave them the ability to bid unfairly and allowed them to win it fraudulently. After these suspicions came to light, FIFA has stripped Hammam of his title as executive committee member and he has been expelled for corruption. In order to truly correct the situation, FIFA should strip Qatar of their title as the host country and reconsider their other options. If FIFA enforces Qatar out of its bid, this will create the awareness of FIFA being an ethical global icon.

http://www.thestar.com/sports/worldcup/2014/06/08/qatar_denies_wrongdoing_amid_new_allegations_over_2022_world_cup_bid.html