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Tesla is suing Bingling Intelligent Technology, a Chinese developer and manufacturer of integrated circuit chips and products, for alleged trade secret infringement and unfair competition. The Shanghai unit of Elon Musk’s electric vehicle manufacturing company lodged a complaint against the China-based chip designer and automotive parts producer at the Intellectual Property court in the city.
Tesla Shanghai’s case against Bingling Intelligent Technology is set to be heard in the IP court on Oct. 10. According to Reuters, the Changzhou, Jiangsu province-based tech firm is backed by the investment unit of Xiaomi Corporation, which holds 11.9% of the company.
Pandaily reported that Xiaomi Smart Factory purchased a stake in Bingling in March this year, and with the amount of shares it acquired, it has become the firm's second-largest shareholder. It was said that Bingling’s connection with Xiaomi made the lawsuit more complicated.
This is because, as a shareholder, the consumer electronics company may possibly have a big influence on the development of Bingling Technology.
In any case, Tesla thinks that BIT breached its intellectual property rights in some aspects, such as the integrated circuit chip design. The EV maker also suspects that the company is stealing some of Tesla’s tech secrets and EV-related patents.
The upcoming trial is being watched by industry experts as they are considering this as a crucial step in resolving the conflict between Tesla and Bingling Intelligent Technology. Through the lawsuit, the former is also seeking the support of the local court so it can protect its technological secrets and avoid any leakage to the public.
Finally, regardless of how the Tesla vs. Bingling trial will conclude, the result will have considerable effects on the companies involved. Experts also think the outcome may even alter the entire energy vehicle sector.
Photo by: Alexander Shatov/Unsplash
