Musk's chip factory faces name lawsuit

Elon Musk's upcoming Terafab chip factory in Texas is being sued by Illinois-based Tera-Print, which claims the name infringes its decade-old trademark for photolithography machines.

Tera-Print sent cease-and-desist in May

After Musk announced Terafab in March, Tera-Print demanded the companies stop using the name and threatened to sue for trademark infringement, false designation of origin, and unfair competition.

“TERA-print claimed that Plaintiffs' use of Terafab is likely to cause confusion with TERA-print's TERA-FAB line of products”

Two completely different products

Musk's Terafab makes large-scale semiconductor chips for AI, robotics and space tech. Tera-Print sells a tabletop printer that etches microscopic designs onto surfaces for bioengineering labs.

“TERA-print does not work in chip design, logic, memory, or packaging”

Tera-Print claims 10-year history

Co-founder Andrey Ivankin says his company has used TERA-FAB as its trademark for over 10 years and now has a major Defense Department contract to fabricate semiconductors.

“TERA-FAB as its trademark for over 10 years, as part of its ongoing and evolving business”

Settlement talks broke down

Tesla offered to settle but then filed the lawsuit anyway. Ivankin says Tesla misled his company by expressing willingness to negotiate while racing to court.

“Having been misled by Tesla's professed interest in settling this matter, Tera-print will now vigorously defend its rights”

Both have registered trademarks

Tesla holds the trademark for Terafab covering semiconductor chips and microchips. Tera-Print holds Tera-fab for silicon chips, glass chips, and 3D micro-printers.

Musk seeks court declaration

SpaceX and Tesla want the court to rule that Terafab does not infringe Tera-Print's rights. Without this, they say they face a continuing legal cloud over the project.

“Without declaratory relief, Plaintiffs face a continuing cloud over their ability to develop, protect, and use the Tesla TERAFAB Marks”