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What does the open patents deal mean for Tesla ... and BMW?

Gift to the world or trade bait? Tesla Motors announced this week it would open its patents for other automakers to use. That has analysts guessing whether the California-based electric-vehicle maker is looking to either swap trade secrets with other automakers or to expand the proverbial pie that represents the plug-in vehicle market. For its part, Tesla says the answer is B. BMW, which is establishing its i sub-brand of plug-in vehicles, would be a natural collaborator with Tesla, Forbes says. In fact, executives from the two companies met in Europe this week. Details were not released, but a BMW spokesman said, "Both companies are strongly committed to the success of electromobility and discussed how to further strengthen the development of electromobility on an international level." While Tesla brings battery technology to the table, BMW offers its carbon-fiber advancements that lighten vehicle-body weight. Those advancements are key to range-extending efforts and could do wonders for Tesla on its journey to help spur technology for the sake of getting more of the general public to accept plug-in technology as a viable first-car option. Then again, Forbes says Tesla, whose investors include Mercedes-Benz parent Daimler and Toyota, may be keeping its best technologies to itself by not patenting certain advancements at all. What's in Tesla's patent pool? uAutoInsurance analyzed Tesla's 249 patents and found that 104 of them related to battery technology, while 28 pertained to recharging activity, which wasn't surprising (about a quarter of those 249 patents couldn't readily be categorized). Tesla also has nine patents related to sunroof technology. The company is based in California, after all.

Tesla does Dallas

Despite not being allowed to actually sell cars on site - or even offer a test drive - Tesla has opened its newest venue in Texas. As of Friday, NorthPark Center mall in Dallas is home to the newest Tesla Gallery. Don't call it a Store! Employees at the gallery can't even discuss pricing. The 2,200-square-foot gallery lets interested parties learn more about the California-based electric car company, and even sit behind the wheel of a Tesla Model S. Texas law prohibits manufacturers to sell directly to the customer, though which is the business model for Tesla. Employees at the gallery can't even discuss pricing. They can, however, explain the technology, and direct potential customers to their website where they can make a reservation at home. Let's call it a hands-on advertisement. "Our galleries create strong awareness for our product," Tesla Spokesperson Alexis Georgeson told Automotive News. "[They] are our advertising." Other Tesla owners in Texas, of which there are nearly 2,000, help pick up the slack, too, some even offering test drives to strangers, she said. Since Texas law restricts selling cars without a franchised dealership, taking delivery of a Model S is a bit of a process. After purchasing online or by phone, the car is delivered from out of state by a third party. The vehicle is registered out-of-state as well, and customers must then register the car in Texas after taking ownership. When they do that, they must also pay the entirety of the Texas sales tax on the vehicle, as well as the price of the aspirin required for the accompanying headache. Without franchised dealerships, repair options are also limited for Tesla owners in Texas. Tesla does have local subsidiaries that do repair work, but customers must first call Tesla Motors in California, who will decide what repair work is necessary before being sending the customer to the service center. Even then, employees aren't allowed to discuss additional repair needs with customers, or even advertise that they do warranty work. Currently, Tesla has three of these subcontracted service centers in Texas, in Austin, Houston and Dallas, with a San Antonio location on the way. Last year, a bill was introduced to exempt Tesla from Texas's law banning factory-owned dealerships, but it didn't get to the House floor before the end of session. According to Georgeson, Tesla will try again to overturn the law when legislators reconvene next year.

Ford files trademark application for 'Model E'

In early December, Ford filed an application with the US Patent and Trademark Office for the name "Model E." Historically, Ford never produced a Model E, and while automakers are known to file for trademarks they never use, some have wondered if the application might be used for a concept car.
Based on other recent events, though, it could be a legal move. In 2000 Ford sued an online start-up called Model E over the similarity of that name to Ford's industry-shaping Model T, but the judge dismissed the case citing lack of proper grounds. In August 2013, Tesla applied for trademark registration for Model E, and at the time, Ford said it would review the application. Tesla actually made two applications for Model E, one for automobiles and structural parts therefore, the other for "providing maintenance and repair services for automobiles," and there are plenty of theories about what the name could be applied to.
The Published for Opposition date for Tesla's applications is December 31, 2013, after which anyone who thinks they'd be harmed by Tesla being granted the trademark gets 30 days to register their issues. This is just speculation, but Ford's application - which was filed for automobiles only - might be about protecting what it sees as unwelcome encroachment on the name Model T, protection it wasn't able to enforce before when the stakes were only online and much smaller.