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Opinion: Unlocking investment by raising walls around your alt-protein start-up
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Opinion: Unlocking investment by raising walls around your alt-protein start-up

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As we grapple with the challenges of feeding a growing population while minimising environmental impact, cellular agriculture and alternative proteins have emerged as transformative solutions. These technologies promise to revolutionise food production, offering food products without the environmental and ethical concerns associated with conventional agriculture.
Eran Noah

However, as with any groundbreaking innovation, the success of the sector hinges not just on scientific advancements but also on the strategic management of intellectual property (IP), particularly patents. Eran Noah, intellectual property advisor and founder of Noah IP, explores the critical role IP plays in shaping the future of the cell-ag space.

The scientific and technological landscape

Cellular agriculture and alternative proteins, which include plant-based, fermentation-derived and cultured proteins, are today at the forefront of food innovation. These technologies involve complex processes such as cellular differentiation, tissue engineering and fermentation, which require significant R&D, CapEx and OpEx investments. Given the intricacies of these processes, companies operating in this space must navigate a labyrinth of technical challenges, including scaling production, ensuring product safety and achieving cost parity with conventional products.


In this context, the role of patents and other forms of intellectual property becomes paramount. Patents provide legal protection for novel inventions, allowing companies to secure exclusive rights to their innovations. This exclusivity is crucial in the early stages of technology development, where companies (and their venture capitalists) need to recoup their R&D investments and establish a competitive edge in a rapidly evolving market.


The strategic importance of patents

For businesses in the cellular agriculture and alt-protein sectors, patents serve as both a shield and a sword. They act as a shield by protecting core technologies from being copied by competitors, ensuring that the time, effort and capital invested in R&D translate into a sustainable business advantage. Without robust patent protection, companies risk having their innovations reverse-engineered and replicated by competitors, potentially eroding their market share and undermining their ability to attract investment.


Conversely, patents also function as a sword by enabling companies to assert their rights against infringers. In a field as dynamic as foodtech, where scientific advancements can quickly lead to new product categories, the ability to enforce patents is essential. Companies can prevent competitors from entering their market space or negotiate licensing agreements that generate revenue and foster collaborative innovation.


Moreover, patents contribute to the overall valuation of a company. In the cellular agriculture and alt-protein sectors, where many companies are still in the start-up or growth phase, a strong (and not necessarily wide) patent portfolio can significantly enhance a company's attractiveness to investors. Patents provide tangible evidence of innovation, which is a key factor that investors consider when evaluating the long-term potential of a business.


Navigating the complexities of patent protection

While the benefits of patent protection are clear, the process of obtaining and managing patents in the cellular agriculture and alt-protein sectors is far from straightforward. These fields are characterised by a high degree of interdisciplinarity, with innovations often straddling multiple scientific domains, including biology, chemistry, engineering and food science. As a result, drafting patent applications that adequately capture the novelty and utility of an invention requires a deep understanding of both the underlying science and the legal landscape.


One of the key challenges in patenting such technologies is the need to strike a balance between broad and narrow claims. Broad claims offer extensive protection but are more likely to be challenged by competitors or rejected by patent examiners for lack of support or enablement. On the other hand, narrow claims may be easier to defend but offer specific protection, potentially allowing competitors to design around the scope of the patent.


Therefore, companies must work closely with IP professionals who possess both the technical expertise to understand the invention and the legal expertise to draft enforceable claims of commercial significance.


Another consideration is the geographical scope of patent protection. The cellular agriculture and alt-protein sectors are becoming more and more global, with companies seeking to commercialise their products in multiple markets. However, patent rights are territorial, meaning that a patent granted in one country does not provide protection in another. Companies must therefore decide in which jurisdictions to file patents, taking into account factors such as market size, regulatory environment and the competitive landscape.


This requires a strategic approach to international patent filing, often involving a combination of national patents and regional patents, such as those granted by the European Patent Office (EPO).



Beyond patents: The broader intellectual property ecosystem

While patents are a critical component of IP strategy, they are not the only form of intellectual property that companies in the cellular agriculture and alt-protein sectors should consider. Trade secrets also play important roles in protecting and commercialising innovations.


Trade secrets offer protection for proprietary information that cannot be easily reverse engineered, such as recipes, processes, and business strategies. Unlike patents, trade secrets do not require public disclosure, making them an attractive low-budget option for protecting sensitive information. However, maintaining trade secret protection requires robust internal controls to prevent unauthorised access or disclosure.


The path forward

As the cellular agriculture and alternative protein sectors continue to evolve, the strategic management of intellectual property will become increasingly important. Companies that proactively protect their innovations through patents and trade secrets will be better positioned to navigate the complexities of this emerging industry, secure a competitive advantage and drive long-term growth.


For B2B professionals in the F&B manufacturing industry, understanding the nuances of IP in this context is not just a legal necessity but a business imperative. By integrating IP strategy into their overall business plans, companies can unlock the full potential of their innovations, ensuring that they are not only pioneers in the lab but also leaders in the market.


In this rapidly advancing field, where the line between scientific breakthrough and commercial success is often determined by the strength of a company's IP portfolio, those who invest in a robust IP strategy today will be the ones who shape the future of food economy tomorrow.


#IP #patent #NoahIP



Unlocking innovation: The critical role of patents and intellectual property in the cell-ag and alt-protein sectors

Phoebe Fraser

31 December 2024

Unlocking innovation: The critical role of patents and intellectual property in the cell-ag and alt-protein sectors

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