Implications of Tesla's Patent Sharing Agreement and Its Financial Aspects

In 1897, George Westinghouse made a pivotal move in the realm of electrical engineering by purchasing Nikola Tesla's patent for the alternating current (AC) induction motor. This acquisition, which amounted to a substantial lump sum payment of $216,000, came six years after Tesla had released Westinghouse from the royalty payment clause associated with the patent. The transaction was part of a broader patent-sharing agreement with General Electric, a company formed in 1892 through the merger of Thomas Edison's company and Thomson-Houston Electric Company. This agreement not only solidified Westinghouse's position in the burgeoning AC market but also played a crucial role in the commercialization of Tesla's innovative technology. The alternating current induction motor would go on to become a cornerstone of modern electrical systems, enabling efficient power distribution and revolutionizing the way electricity was utilized across industries. This strategic partnership marked a significant milestone in the history of electrical engineering, showcasing the importance of collaboration and innovation in advancing technology. #mooflife #mof #MomentOfLife #Westinghouse #Tesla #AcInductionMotor #GeneralElectric #PatentAgreement