Protecting biotechnology knowledge as important as the research itself

Wednesday 7 March 2001

By Michelle Chignell, Senior Associate

A2 milk is the latest biotechnological breakthrough, which could prevent diabetes and artery disease - and its happening right here in New Zealand. It reflects how the biotech trend is flourishing in New Zealand and will continue to do so but only if proper consideration is given the right legal protection.

At a time when New Zealand is searching for its economic direction, the answer is as simple as concentrating on doing what we've always done best, and bringing it into the twenty-first century.

But to make the most of it, we have to ensure we fully capitalise on our skills in the area, and that means using the full force of the law to protect ourselves against competitors, both foreign and domestic.

New Zealand has always been an agricultural innovator - right from the days when the first refrigerated ships transported lamb and dairy products back to the UK. At the same time, we have always been a technologically adept country. It makes sense that we should be looking at combining our two key strengths in a bid to establish New Zealand as a market leader in biotechnology.

In fact, it's hard to think of another country more likely to succeed and benefit from technology. It combines our traditional strength in agriculture and horticulture with good old-fashioned kiwi ingenuity. We pride ourselves on it and we are good at it.

Unfortunately, biotechnology is often misunderstood. In some circles it is seen as akin to sorcery or to Genetic Modification (which it does not necessarily involve) and often attracts the same kind of attention.

Advances are not always greeted with acclaim or without reservation. Often they deserve to be balanced by ethical checks or reviewed in context by a Commission of Enquiry.

However, biotechnology is what our predecessors used to invent and develop cheese making; ferment wine and brew beer and is now used to make things as diverse as antibiotics and efficient waste recycling.

And where would this country be without the dairy or wine industries?

Many herald biotechnology as the next big thing to boost our dismal economic performance. Recent offshore investment in HortResearch innovation and medical research has changed the focus from the glamour of last year's tech stocks to the allure of biotech.

Technology investment will remain a key to unlocking potential wealth for New Zealand but there is an increasing awareness of the important potential of biotech.

Demand last year for shares in Genesis Research & Development, this country's first biotechnology listing, proved fierce. In February this year, Genesis announced it was one step closer to releasing on the world market a new treatment for psoriasis, a disfiguring skin disease. It is the first New Zealand company researching a drug from scratch to proceed this far through the US Food and Drug Administration (FDA) process.

However, a Waikato University study has labelled Genesis as an isolated "island of excellence" and criticises New Zealand for its lack of a "well functioning innovation system for biotechnology" in comparison to Australia, Singapore and the US.

However, with biotechnology proving commercially hot property around the world, at least one of the government's Crown Research Institutes has moved to make money out of its research. Celentis has been established as a separate business unit by AgResearch to embrace the global biotech trend, position future agricultural markets and maximise commercialisation of its discoveries. AgResearch had made groundbreaking discoveries in recent years, including the Inverdale gene (a gene discovered in New Zealand sheep linked to high lambing rates) and the world's first DNA-based meat tracing system. They are currently researching a new treatment for multiple sclerosis.

And in another field, The New Zealand Dairy Board and Dunedin company A2 Corp are now in a race to secure the patents to similar technology for determining which cows carry the milk protein.

This is an unfortunate situation and one that can be easily avoided, but brings up one of the most crucial points about turning biotechnology into a viable industry and one that will ensure that you can exploit the benefits of your advances - intellectual property protection.

Legal protection of the intellectual property involved with biotechnology is crucial - it can be as important as the breakthrough itself. Without it, investment in biotech projects will not be forthcoming and potential of homegrown ideas will never be realised.

Biotechnology is a working embodiment of the so-called knowledge economy. The idea and the inspiration are the driving forces behind the product - not the product itself. And protecting that knowledge and any associated trademarks is critical, as many innovators have found out the hard way.

Secrecy is a necessary element of patent protection applications and can be pivotal in the funding of advances, so the message is clear.

With the immediacy of the Internet a careless confidence can become part of the public domain and unpatentable within seconds. Or the result may be that the commercial advantage in being first to develop a product will be lost.

Conversely the Internet means that our physical isolation is no barrier in promoting and exploiting an adequately protected advance.

If you are on the verge of a break through - seek advice early. Ensure that you are aware of what can be done to protect your intellectual capital so that you can identify and avoid areas of risk.

Knowledge may be power but hindsight can be bitter and expensive.

It is easier to avoid a risk once you know what it is.