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APPENDIX 1 THE TECHNOLOGY INDUSTRY LOVES MESSY FOUNDING TALES. A bit of backstabbing? A hearty helping of deceit? Perfect. And yet, the press has never really dug into the alleged intrigue surrounding Musk’s formation of Zip2, nor have reporters examined the very serious allegations of inconsistencies in Musk’s academic record. In April 2007, a physicist named John O’Reilly filed a lawsuit alleging that Musk had stolen the idea for Zip2. According to the lawsuit, filed with the Superior Court of California in Santa Clara, O’Reilly first met Musk in October 1995. O’Reilly had started a company called Internet Merchant Channel, or IMC, which planned to let businesses create primitive, information-packed online ads. A restaurant, for example, could build an ad that would display its menu and perhaps even turn-by-turn directions to its location. O’Reilly’s ideas were mostly theoretical, but Zip2 did end up providing a very similar service. O’Reilly alleged that Musk had first heard about this type of technology while trying to get a job working as a salesman for IMC. He and Musk met on at least three occasions, according to the lawsuit, to talk about the job. O’Reilly then went on an overseas trip and struggled to get back in touch with Musk upon his return. O’Reilly declined to discuss his case against Musk with me. But in the lawsuit, he claimed to have learned about Zip2 through happenstance many years after meeting Musk. While reading a book in 2005 about the Internet economy, O’Reilly stumbled upon a passage that mentioned Musk’s founding of Zip2 and its 1999 sale to Compaq Computer for $307 million in cash. The physicist was blown away as he realized that Zip2 sounded a lot like IMC, which had never amounted to much of a business. O’Reilly’s mind raced back to his encounters with Musk. He began to suspect that Musk had avoided him on purpose and that instead of becoming an IMC salesman, Musk had run off to pursue the same concept on his own. O’Reilly wanted to be compensated for coming up with the original business idea. He spent about two years making his case against Musk. The case file at the court runs hundreds of pages. O’Reilly has affidavits from people that back up parts of his version of events. A judge, however, found that O’Reilly lacked the necessary legal standing to bring this case against Musk due to issues around how his businesses had been dissolved. The judge ordered O’Reilly to shell out $125,000 for Musk’s legal fees in 2010. All these years later, Musk still hasn’t made O’Reilly pay. While playing detective, O’Reilly unearthed some information about Musk’s past that’s arguably more interesting than the allegations in the lawsuit. He found that the University of Pennsylvania granted Musk’s degrees in 1997—two years later than what Musk has cited. I called Penn’s registrar and verified these findings. Copies of Musk’s records show that he received a dual degree in economics and physics in May 1997. O’Reilly also subpoenaed the registrar’s office at Stanford to verify Musk’s admittance in 1995 for his doctorate work in physics. “Based on the information youPDF Image | SpaceX and the Quest
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