Tera-print, a company that has sold Tera-Fab-branded beam pen lithography tools for approximately a decade, has issued a cease-and-desist order to the new venture Terafab. The dispute centers on potential trademark infringement, as both entities operate within the semiconductor technology sector.

Tera-print provides compact lithography equipment primarily utilized for bioengineering, prototyping microfluidic devices, and electronic or optical components. Its client list reportedly includes the U.S. Department of Defense. The company argues that the similarity in names could cause market confusion.

Tesla, SpaceX, and SpaceXAI, the entities behind the new Terafab project, contend that their operations differ significantly from those of Tera-print. They intend to focus on high-volume chip production for artificial intelligence, automotive, robotics, and space applications.

The parties engaged in settlement discussions, including a proposal from Tesla. However, Tera-print alleges that Tesla sought to prolong negotiations rather than resolve the conflict. Tera-print has now filed a trademark lawsuit to protect its registered brand.