Nikola Files $2 Billion Patent Lawsuit Against Tesla

Nikola Files $2 Billion Patent Lawsuit Against Tesla
Karan Singh
| Updated: Oct 28, 2021 | Category: Patent

Earlier this month, a Federal Judge shelved the case after the two companies stopped answering the court’s orders. However, on 19th October 2021 (Tuesday), Judge James Donato said that the case against Tesla will still remain “Administratively Closed” but won’t be refused. Scroll down to check more information regarding Nikola’s Patent Lawsuit against Tesla.

Nikola’s Patent Lawsuit Against Tesla – An Overview

Most Famous electric car manufacturer Tesla is still facing the $2 billion Patent Lawsuit filed by hydrogen trucking start-up Nikola over Design Patents Infringement.

Nikola first filed the case in 2018, alleging that Tesla’s own semi-truck violates a number of Design Patents of Nikola. Nikola said that Tesla stealing their designs would cheat the start-up of $2 billion in market share.

So on 1st October 2021, the Judge closed the lawsuit as neither Tesla nor Nikola replied to earlier orders given by the court, but the court has now assigned Nikola two new deadlines for hearing in Jan 2022.

Nikola’s apparent reasons for not responding to the orders of the court are not particularly compelling, so Judge James Donato said in the order – “The Lawsuit will not be dismissed at this time for failure to take legal action, but that may alter if Nikola doesn’t move this lawsuit forward to a decision in an effective & timely manner.

Patent Office Gave Nikola a Small Relaxation in this Case Over Tesla Semi in 2020 – Background

Whenever we discuss about Class 8 Trucks, the only thing that comes in our mind is Tesla vs Nikola on the road and in the court. In May 2016, Nikola disclosed its Nikola One Truck and showed a prototype. In 2017, Tesla unveiled its Tesla Semi, and it had a number of factors in common with the Nikola one, like the wraparound windshield and side door. The main problem is that in 2015 Nikola applied for Patent Registration of Nikola one’s wraparound windshield, fender, fuselage, mid-entry door, side cladding, and complete design of the Nikola One.

In early 2018, the USPTO granted all six Patents, and in May 2018, Nikola sued Tesla for $2 billion, claiming Patent Infringement because the Semi reportedly looks identical to Nikola’ truck creating confusion among customers and harming the Nikola brand.

So the case continues in the courts; in September 2019, Tesla asked the USPTO (United States Patent & Trademark Office) to examine Nikola’s mid-entry side door Patent, looking to overturn it. At the March end of 2020, the USPTO[1] rejected Tesla’s request by saying that Petitioner has not explained a reasonable likelihood of success in proving that a minimum of one claim of the 084 Patent is unpatentable. 084 Patent is for Methods, Devices, and Systems for an Automobile Door/Window. The founder & CEO of Nikola were more excited about the decision than the USPTO.  USPTO not only upheld Nikola semi-truck vital Patents but declined Tesla’s ask to modify our Patents. The $2 billion Patent lawsuit against Tesla is moving forward.

Conclusion

So, in the end, it is concluded that Nikola’s Patent Lawsuit against Tesla continues, and Judge James Donato said that the case against Tesla will still remain “Administratively Closed” but won’t be refused. The court has now assigned Nikola two new deadlines for hearing in Jan 2022.

Read our article:Is Directed Patent Prosecution Necessary for Legal Counsels?

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Karan Singh

A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.

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