Tesla Sues Chinese Firm over Tech Secret Infringement

Tesla Sues Chinese Firm over Tech Secret Infringement

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Tesla is suing a Chinese chip design firm over tech secret infringement and unfair competition disputes. The concern is that the actions of Bingling Intelligent Technology—in which Xiaomi owns a big stake—may lead to technology leakage and illegal acquisition of trade secrets.

Chinese national security newspaper The Shanghai Securities Journal reported on Tuesday that Tesla has filed a lawsuit against Chinese chip designer Bingling Intelligent Technology over violations of technical secrets and unfair competition disputes. The Texas-based manufacturer said Bingling violated its intellectual property rights, especially in the field of integrated circuit design, and may have illegally obtained Tesla's technological know-how.

The producer fears that Bingling's actions could leak technology and illegally acquire trade secrets, according to investing.com. This could be detrimental to Tesla's market position and the company's business interests.

Bingling specializes in integrated circuit chip design, automotive component manufacturing, and automotive part research. Their main product delivered to the market is energy efficient control sensors. They are critical for optimizing battery systems, motor management, and power modules in electric vehicles, and for improving energy efficiency and safety control.

In March 2023, Xiaomi Smart Factory invested in Bingling and now owns about 11.86% of the company's shares. Xiaomi is the second largest shareholder and potentially has significant influence over the course of the Bingling case and the final resolution of the case. According to the report, the lawsuit against Bingling will be heard in the Shanghai Intellectual Property Court on October 10.

© 2023, Eva Fox | Tesmanian. All rights reserved.


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Article edited by @SmokeyShorts; follow him on Twitter

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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