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Careful protection of intellectual property rights is a necessity for a high-tech startup company

May 20, 2024

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    Liquid Sun

    At Liquid Sun, we work at the forefront of green energy solutions and the revolution in fossil-free chemicals, with the idea that a fossil-free future is a necessity - not an option. Liquid Sun technology is inspired by nature's own carbon cycle, using harmful CO₂ as the building block for new life and chemicals. The scientific roots of our technology lie in world-leading research on photosynthesis of artificial substances at Stanford University and the University of Tampere, where some of our top scientists have previously worked.

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    Liquid Sun is a startup developing future technologies that convert CO2 emissions into fossil-free e-fuels. The technology is based on low-temperature electrolysis and catalytic solutions that reduce CO2 into green carbon monoxide, among other products. This is used as a raw material in the production of sustainable aviation fuel (SAF).  Developing and commercializing these e-fuels is a significant means of combating climate change.

    Carbon dioxide is a greenhouse gas released into the atmosphere from the use of fossil fuels and has a significant impact on climate change. Therefore, its capture and transformation into a building block for renewable energy sources is particularly promising. Advantage is that this helps achieve climate goals by meeting the required emission standards using renewable energy sources.

    Between two worlds

    Liquid Sun has its roots deep in scientific research in the academic world. A few years ago, a pre-commercialization project funded by Business Finland was launched to identify and exploit the commercial potential of scientific innovations emerging at the university. From this project, Liquid Sun spun off into the current startup.

    The connection to the university still exists. Some of the company's staff were previously researchers at the University of Tampere, developing the very technology that was later commercialized under the startup.

    One of them is Pasi Keinänen, CEO and one of the founding partners of Liquid Sun. He mentions that the company's premises are next to the University of Tampere and that cooperation includes renting analytical equipment. The equipment is worth millions, so purchasing it is not an option for Liquid Sun at the initial phases of commercializing the technology. According to Keinänen, there is currently no active research collaboration, but future plans include more extensive mutually beneficial activities.

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    Pasi Keinänen, CEO of Liquid Sun

    – Ideas for the future include, for example, funding of graduate theses and maybe purchasing larger projects from the university. At this point, however, we are still doing everything ourselves.

    An advantage of the pre-commercialization project was that Liquid Sun's technology was already very mature when it was commercialized. Keinänen notes that the work done at the university allowed the concept to be developed quite far before the actual company was established.

    – Our work done at the university prepared us for the rapid progress of the company. Without it, we would probably still be in the early stages. We have proceeded very fast to productization, and now we are already talking about planning the first pilot plants. Our first client in Northern Finland is interested in integrating this technology in their own system. In that sense, we have made progress quickly.

    Careful patenting secures freedom to operate

    Berggren is a full-service international IP firm specialized in the protection and exploitation of intellectual property rights. Patent matters are crucial for a high-tech startup like Liquid Sun. With only a few companies worldwide developing similar technology, the market is just forming, and there is plenty of room for patenting solutions related to electrolyzers.

    For companies operating in such emerging markets, it is essential to demonstrate their freedom to operate, to make the company an attractive investment target. This is precisely achieved through patents, which secure a prohibition right for innovations critical for the business idea.

    Several aspects relating to patents need to be considered, where it is advisable to rely on professionals specialized in patent matters. First, it is essential to identify and select which of the solutions developed by the company should be patented. When it is known which pieces of innovation are particularly significant for securing the freedom to operate, patenting can be most effective. Existing patents or pending patent applications crucial for the business idea are presentable to investors.

    Secondly, drafting patent applications is a discipline in its own right, where the precision of legal terminology requires visionary expertise. Assistance from a patent agency is crucial in this. Keinänen recalls an instance where patent applications were made without the support of an IP firm like Berggren.

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    – I used to work for a company where they tried to take care of things themselves. Applications even proceeded to granted patents, but investors immediately found them to be written by amateurs and knew that they would not protect in the way that was perhaps expected. Berggren is an expert organization in writing and handling of patents. You can also build a house yourself if you want, but you can hardly make it just perfect.

    From an internal survey to consulting Berggren

    Liquid Sun's patent applications begin with an internal process in the company, where ideas for implementing various technical solutions are collected. The company initially prepares its own survey on whether these ideas have already been patented and which elements of them might be worth patenting. Then Berggren is involved in the process.

    – We tell Berggren about our ideas, and their experts make their own search and examine possible obstacles. If obstacles are found, they are reviewed to find out a possible space for filing a patent application.

    The original idea may significantly expand under Berggren's scrutiny. Several patentable items may be found, turning a single idea into a series of patent applications. The expertise of professionals dedicated to drafting these applications is a major asset.

    – Another good thing about Berggren is that they give you a lot of help in drawing up patent applications. Our R&D engineers have a background in research and are used to writing scientific articles, but a patent application is primarily a legal document. It requires special expertise to turn an innovation into an application written in such a legal format to provide maximum protection.

    A well selected route makes the long journey easier

    Currently, Liquid Sun has three patent applications pending. Patent processes are quite lengthy, as it can take years or even a decade before a final decision on a patent application is issued. Because of the time aspect, it is essential to consider the extent to which each patent would affect the company's business.

    In principle, patent applications can be formulated in such a way that the applications will be approved in any case. However, if the patents do not sufficiently protect the innovations fundamental to the company, it costs valuable time for a startup like Liquid Sun, which is still trying to gain a foothold in emerging markets. Thanks to Berggren's reliable perspective, the patent applications aim precisely to support and secure the company's business activities.

    – This is always a case-by-case consideration of how broad or narrow the application should be made, Keinänen notes.

    Tailored service

    Keinänen has a long personal experience with patents and is impressed by how confidently Berggren handles the company's patent affairs. It has also been good learning for everyone in the company who had not previously delved into patent matters.

    – They learn a lot about how things are practically done. It's one thing to read about how patents work and another to actually do it and learn through that process. The expertise is also included as an educational element in our activities.

    Moreover, Keinänen appreciates Berggren's personalized client service. The contact person has the necessary background information about Liquid Sun and its patent matters, so basic issues do not need to be reviewed every time contact is made with Berggren, but matters can be clarified smoothly.

    – We have our own trusted person there. If other expertise is needed, it is delegated within Berggren. It's important to have such a single point of contact so that the groundwork doesn't have to be gone through over and over again.

    Keinänen emphasizes that Liquid Sun's field of high technology requires an IP law firm to have a very broad range of expertise. Berggren, being a large and experienced player, is therefore an obvious choice as a partner.

    – A large organization is needed, one capable of evaluating the matter from many different perspectives. Of course, companies vary, but if we're talking about high technology, as we do, then expertise in many different fields is required.

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