Why Companies Should Patent Their Quantum Technology Now
Learn how IP protection navigates quantum hurdles and secures future innovation.
Effective patenting is key for capitalizing on quantum advancements, fostering innovation, and navigating the complex landscape of IP rights. Erik Garcell, technical marketing manager of Classiq, says patents will play a vital role in shaping the future of quantum technology and its commercial applications.
Quantum technology is on the way. Predictions vary, but the consensus is that quantum computing will deliver tremendous value within the next ten years. Companies are already exploring and investing in this new research frontier, creating quantum-ready teams. But they must also start considering how they will patent their intellectual property (IP), or else risk losing significant competitive advantage before quantum technology is even accessible.
The Value of Patents
Patents are essential enablers of innovation. While rules can vary from country to country, a successful patent claim can last up to 20 years, allowing a company plenty of time to profit from their invention while encouraging them to share their discovery with the world. And by sharing ideas, other companies will be inspired to build on top of a patent to create something new. For startups and smaller companies, much of their value may be tied up in their patent portfolio. Once these patents are secured, companies can generate tremendous value by licensing the technology to generate revenue.
Some may argue that patents stifle innovation, and there are examples of companies that bought out patents to prevent competition for their technology. However, other businesses will work around existing patents to create new solutions and alternative processes. These innovations lead to greater market competition, which benefits the consumer and society.
Some companies may choose not to patent their ideas, preferring to keep them private rather than reveal their solution to the public. Quantum applications are much harder to reverse engineer than classical software, and if the quantum innovation is complex enough, organizations may decide simply to keep their invention a trade secret. For example, Quantum applications relating to national security are likely to remain secret.
However, this approach carries risk, as not patenting an idea leaves a company vulnerable if a rival discovers or replicates its invention. If this happens, the original creator will lose their competitive advantage and likely have no recourse to stop their competitor from using it, especially if they proceed to patent it. Even if the original company can prove they invented the process, most patent legislatures favor the company that was the first to file a patent.
A company must patent an idea to have government protection to enforce its IP rights. If another company does independently come to the same discovery and patents the idea, the original creators may be allowed to use their technology. Most organizations, therefore, have a strong incentive to act fast and file their patents if they wish to secure their IP.
The Race for Quantum Patents
There is already a lot of quantum activity in the patent arena. One study mapped the patent landscape of quantum technologies and found that, since 2001, around 20,000 patents have been granted by the US and European patent offices where quantum technology was a core concept. The research also indicated that the number of successful patent applications is accelerating. It found nearly a 10-fold increase in the number of quantum technology patents granted yearly, from only 161 in 2001 to 1,555 in 2018.
Many more recent applications have yet to be made available to the public. For instance, provisional patent applications allow companies to file without making a formal claim or disclosing information. These give companies time to investigate and develop an idea without fully committing to a patent claim. This provision can pend for up to a year, and when a patent is approved, there is usually a blackout period before it becomes public. These give companies a significant window where their quantum innovation is effectively invisible from competitors.
These patents go beyond just hardware. Many are for quantum applications, such as information processing, cryptography, and communications. The challenge for companies developing quantum patent applications is shared with classical computing developers: patents cannot specifically claim software code. Patent claims must be based on inventions that solve a technical problem using new and novel processes.
Some of these patents will be from companies investigating quantum technology but not for immediate use within their business. Instead, they are filing patents for novel processes that aren’t directly related to quantum but include language that specifically targets the quantum application of this process. This future-proofs their invention from quantum disruption and allows these companies to build a “patent fence” within the field of quantum technology. By patenting early, companies can first market with an idea and fence out their competition.
These patent fences are a big issue for companies who realize the value of quantum too late. When they start to invest in quantum, they could run into these fences, limiting their ability to operate in their field without paying a license fee to the patent holder. They may try to circumvent the language used in the patent claim, which could prove dangerous as it risks violating the existing patent. Some companies may feel compelled to acquire the owners of these patent fences so they can operate more easily.
One concern about this acceleration in patent claims is that bottlenecks could form. The people reviewing patent applications need foundational knowledge of the subject to understand the application and whether or not it covers a novel process. However, quantum science is still nascent and requires a robust understanding of fundamental concepts. Do patent offices have staff with sufficient experience in quantum software programming?
Given the plethora of patent claims being made, patent offices might need more time to turn decisions around. Or worse, these bottlenecks might lead to them making hasty decisions, turning down strong applications while approving weaker ones. This could be frustrating for companies trying to protect their quantum applications. As such, companies must ensure they are filling their patent applications promptly to avoid any future bottlenecks.
See More: Why Optimizing AI Algorithms is Key in Product Development
The Steps to Securing Your Quantum IP
Quantum-ready companies need to consider how they will protect their IP and prevent future disruption once the barriers to quantum technology are overcome.
Filing quantum applications doesn’t necessarily involve creating complex codes and programs. Instead, it can involve companies teaching their engineers about quantum concepts so that when they patent a process, they can include language about how quantum can be applied to the process. The patented idea doesn’t necessarily have to work: the company simply needs to be able to describe and teach the process to claim the patent. Many companies are likely to patent ideas they think will work in the future.
Quantum-ready companies will already have teams in place who understand quantum technology and have completed or are completing their digital transformation to be ready for quantum technology in the future. At this point, their quantum teams need to explore use cases for quantum within their business and industry while researching the patent landscape to learn what processes have and have not been patented. Without doing this research, quantum teams risk wasting time patenting ideas that have already been claimed or developing products the company won’t be able to work on due to patents.
These teams need to look for “white space” in the market: the areas with no existing patents that give them more room to operate. Once they have located this unoccupied space, they can focus, start to innovate and develop new, ground-breaking ideas.
Companies should consider working with an IP law firm, which can help navigate patent fences and find that unoccupied space. Working with an experienced IP lawyer who is used to patenting software solutions can prove invaluable when writing a patent application. While quantum technology involves new concepts and ideas, writing a claim does not change, so a well-versed patent lawyer can help articulate and write the application.
Companies that identify a need in your industry and find gaps in the patent landscape will likely be the first to market on patenting novel quantum technology technologies. This is a significant opportunity, one that is not to be missed.
How can your company navigate the quantum patent maze? Why is patenting crucial in the quantum age? Let us know on Facebook, X, and LinkedIn. We’d love to hear from you!
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