Elon Musk's Terafab hits a roadblock before making a single chip, receives cease-and-desist order — firm files trademark lawsuit, has sold Tera-Fab-branded lithography tools for over a decade

In an unexpected turn of events, Terafab has faced an odd roadblock as a small U.S.-based company called Tera-print sent a cease-and-desist letter to SpaceX and Tesla back in May to stop using the Terafab name. In the meantime, the company with tera-scale ambitions has run into a tabletop-sized problem: the Tera-Fab name has already been used for about a decade by Tera-Print, according to PCMag.

As it turns out, Tera-print sells Tera-Fab-branded beam pen lithography (BPL) tools primarily aimed at bioengineering and prototyping of microfluidic devices and has used the brand for about a decade. The U.S. Department of Defense appears to be a client of Tera-print, which uses Tera-Fab.

While Tera-print claims that the Terafab name could be confused with its Tera-Fab product family, Tesla, SpaceX, and SpaceXAI counter that the operations are fundamentally different: Terafab is set to produce chips in extremely high volumes to serve AI, automotive, robotics, and eventually (at least some) space applications, whereas Tera-print's Tera-Fab is a compact lithography tool that can be used for bioengineering or prototyping of electronic or optical devices.

Formally, the trademark coverage puts both names into the same semiconductor technology bucket, albeit with different descriptions:

• Tesla's Terafab covers 'custom manufacture of semiconductor chips, memory chips, integrated circuits, and wafers' (IC 040) as well as 'distribution services, namely, delivery of semiconductor chips, chip carriers, namely, semiconductor chip housings, memory chips, integrated circuits, semiconductors, and microchips' (IC 039).
• Tera-print's Tera-Fab covers 'Polymer pen and beam pen lithography instruments in the nature of 3D micro-printers and 3D nano-scale printers' (IC 007); 'Polymer pen and beam pen lithography instruments in the nature of 2D micro-scale molecular and material printers and 2D nano-scale molecular and material printers' (IC 009), 'Light-directed photochemical synthesis tools; Industrial advanced materials synthesis tools; Advanced light projection systems; High precision force-feedback sample alignment modules; Environmental control sample chambers' (IC 009); as well as 'training services in the field of AI design and development, electronics, computer science, biology, and material science' (IC 042).

The two companies reportedly entered settlement talks, which included an offer from Tesla, but Tera-Print alleges that Tesla expressed interest in continuing negotiations instead of taking the dispute to court. Tera-Print says it will now defend its registered trademark and argues that the companies operate in related fields, which could lead to confusion.