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17 July 2023Global Trade SecretsMuireann Bolger

Tesla sues Australian company over energy storage patent

Car and battery maker charges supercapacitors company with infringement | Tesla values its energy and storage revenues at more than $1bn.

Tesla is targeting an Australian manufacturer over patent infringement claims in a dispute involving energy storage device technology.

The Elon Musk-owned company filed the lawsuit against CAP-XX at the District Court for the Eastern District of Texas on Friday, July 14.

A litigious month

CAP-XX designs and manufactures the thinnest, high power density and energy storage supercapacitors “ideal for portable and small-scale electronic devices”, according to its website.

The suit comes as Musk seems to be in a litigious mood. Earlier this month, the mogul threatened to pursue a trade secrets complaint against Meta’s Mark Zuckerberg as the launch of Twitter rival, Threads, escalated their highly publicised feud.

Friday’s complaint asserts the infringement of US patent numbers, 8,279,580 and 8,591,601 under US patent laws.

Both patents are directed to an electrode for use in electrochemical double layer capacitors—commonly known as ‘supercapacitors’—as well as hybrid capacitors, and battery devices.

A supercapacitor’s electrodes are the primary source of the device’s power capabilities— double layers of charges are formed at the interface between the electrodes and the electrolyte in which they are immersed.

Electrodes are often made from porous carbon materials whereby the pores help provide large effective surface areas for interaction with the electrolyte, explains the filing.

Such electrodes—according to the invention of the asserted patents—use a combination of micropores and mesopores.

Tesla goes on to allege that CAP-XX markets and distributes its infringing supercapacitor products throughout the world, including all 50 US states, and has established distribution channels for its supercapacitor products in Texas.

Testing of CAP-XX’s DMF3, GS206F, HS230F products demonstrate that CAP-XX’s supercapacitor products use an active electrode material made with a combination of microporous and mesoporous activated carbon particles within the ranges claimed by the asserted patents, argues Tesla.

Further, it argues that CAP-XX’s products include similar ratios of microporous and mesoporous activated carbon particles that fall within the ranges claimed by the asserted patents.

According to figures released by Tesla, its energy generation and storage revenues increased 90% year-over-year to $1.3 billion in 2022 representing 5.4% of its total revenues.

An ‘exceptional’ case

The suit marks the latest twist in the companies’ litigation in history: CAP-XX previously filed suit against Maxwell Technologies, a former subsidiary of Tesla, alleging the infringement of US patent numbers 6,920,034 and 7,382,600.

While Tesla sold Maxwell Technologies in 2021, it retained the dry cell technology portfolio it acquired from its takeover two years earlier.

Tesla argues in its complaint last week that when it had sent a cease and desist letter to the Australian company last December, CAP-XX refused to sign a licensing agreement and “willfully continued with its infringing activities”.

“Despite having actual notice of the ’580 patent, CAP-XX continued to actively infringe the ’580 patent in disregard of plaintiff’s rights, making this case exceptional and entitling plaintiff to reasonable attorney’s fees pursuant,” insists Tesla, which is seeking a jury trial.

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