Tesla announced in June 2014 the opening of its electric vehicle related technology patents to promote the development of the electric vehicle industry. In terms of open patents, not only Tesla, but also companies such as Toyota, Panasonic, and Ford have opened some technology patents. From the perspective of the open patent technologies, they all have one thing in common: the markets in which these patent technologies are located are still in an immature stage.

Why do these industry giants choose to open up their patents? One important point is that patents have a time limit. Once a patent expires, it will no longer be able to generate revenue or provide protection for the patent holder. The industry is still in an immature stage and cannot maximize the benefits of patents. Therefore, it is necessary to promote market development. These giants are still continuously improving their technology and laying out patents. When the market matures, these patents are likely to become advantageous weapons for rights holders.

In addition, as the market matures, there will be an increase in patent infringement lawsuits to enhance the competitive advantage of rights holders. Therefore, early warning and control of patent risks are particularly important. Due to the geographical protection characteristics of patents and the fact that the largest infringement occurs in manufacturing and sales, we analyze the risk situation of electric vehicle patents from the main market countries, manufacturing countries, and effective patent distribution analyzed in the “Zhongshan Electric Vehicle Patent Navigation Research Report”.

Data source: “Zhongshan Electric Vehicle Patent Navigation Research Report” Argonne National Laboratory

Figure 1: Global Sales of Electric Vehicles from 2011 to 2015

The sales volume of electric vehicles is increasing every year, and the market demand is growing significantly. In 2015, the market expansion ratio increased dramatically, with the main markets concentrated in China, the United States, and Europe. Especially, the Chinese market is growing significantly, and China will become the world’s largest market for electric vehicles. Enterprises selling electric vehicles and related components need to pay special attention to patent risks in regions such as China, the United States, and Europe.

Data source: “Zhongshan Electric Vehicle Patent Navigation Research Report” EV Volumes

Figure 2: Distribution of Major Origins of Electric Vehicles in 2015

From the perspective of the origin of electric vehicles, China, Europe, Japan, and the United States are the main countries of origin for electric vehicles. In 2015, one-third of global electric vehicle sales came from China. Chinese manufacturers of electric vehicles and related components mainly manufacture in China, so it is particularly important to pay attention to patent risks in the Chinese region.

Data source: “Zhongshan Electric Vehicle Patent Navigation Research Report”, analyzed and organized by Zhongshan Yunchuang

Note: As of the date of patent research, some patents from 2015 and 2016 have not been made public

Figure 3 Annual distribution of valid patent applications for electric vehicles

In terms of effective patents, the main risks are concentrated in China, the United States, and Europe in recent years, indicating that countries have realized the prospects of the electric vehicle market and have been laying out patents. Among them, China’s effective patents have significantly increased and are in a continuous state of growth. Among them, foreign applicants account for half of the effective invention patents. The risks of manufacturing, sales, and other activities in China come from overseas rights holders, and Chinese enterprises need to strengthen their patent layout and pay attention to patent risks.

Data source: “Zhongshan Electric Vehicle Patent Navigation Research Report”, analyzed and organized by Zhongshan Yunchuang

Table 1 Annual distribution of applications for patents related to batteries and charging technology (CN)

Taking battery and charging technology as an example in Chinese patents, there are many effective patent layouts, especially in the connection/assembly of batteries and battery packs, battery materials, and contact charging technology. Effective patents are clearly clustered, and manufacturers involved in the manufacturing and sales of battery and charging technology need to pay special attention to patent risk warning and risk investigation for technologies related to themselves.