Tesla Motors and Toyota Offer their Patent Portfolios In 2014, Tesla Motors announced that it is offering its patent portfolio for free usage. Toyota followed suit, making its patent portfolio for hydrogen fuel-cell cars open for free usage until 2020.

This move is intended to help the auto market grow and adopt their technologies and technology enhancement.

a. If Tesla and Toyota held on to their portfolio of patents and, thus, to their positions as monopolies concerning these technologies, who would benefit and who would lose?

b. Following the opening of these patent portfolios to other automotive firms, who would benefit and who would lose?

c. Explain which market type is more efficient:
a monopoly through patents or a perfectly competitive market.