Elon Musk's 'No Patents' Rule is Smart Move for Him, Great for Innovators

Elon Musk isn't just tooting his own horn when he says he doesn't need to keep his technology top secret to succeed, he's actually making a totally "gangsta" business move ... according to Daymond John.

The "Shark Tank" star was on TMZ Live Friday explaining why Elon's unwritten rule of not patenting Tesla and SpaceX innovations is paying off for him ... and others. First off, Daymond says patents can slow down companies, and often it's all about speed when it comes to getting a good product to market to beat out the competition.

As we've reported, Elon dropped his "no patent" bombshell while on "Jay Leno's Garage" this week -- explaining he's not the least bit afraid of going head-to-head with other companies or inventors.

In fact, DJ points out Elon's said he won't sue anyone who wants to use Tesla technology in good faith, so he's walking the walk ... allowing others to build off his ideas and create better tech to advance society.