Tesla’s business partners, Peck and Brown, agreed to sell the AC motor patents to Westinghouse for $75,000 and royalties of $2.50 per horsepower for each motor. Westinghouse, in turn, guaranteed that the royalties would be at least $5,000 the first year, $10,000 the second, and $15,000 from the third onwards. Over the life of the patents (17 years), Tesla, Peck, and Brown would earn $315,000.
