Team:Shanghai Metro/Entrepreneurship
Entrepreneurship
Market context
We have interviewed Ms. Zheng from Co-effort Law Firm. She has been involved in
patent cases related to edible mushrooms. Because different countries have different systems and policies
for patent protection, the strains are straightforward to copy. After several cultivations and forming a new
variety, the researchers intended to protect a new plant variety. Still, unfortunately, it was not included
in the protection of a new plant variety before because the variation between strains was very small. They
sought two routes for patent protection at that time, one of which was microbial conservatorship base for
strain protection. This route was difficult to compare when the infringement was verified. For example, if
you buy a strain in the market, and the strain in the conservation center is the same species, being
credibly recognized is very difficult. In addition to this, the prestige and the specificity of the patent
can be confirmed by the fragment of the genetic molecule. But the problem was that they did not list the
molecular sequence, i.e., the specific fragment, directly but wrote the amplification sequence in the
patent. This move increased the difficulty of infringement protection. Patent ‘infringement follows the
principle of comprehensive coverage. It is unrealistic to argue that the other party also produced this
sequence in the production process, and this aspect eventually could not move forward. However, there was an
invalidation procedure in addition to the patent application, and the opponent wanted to invalidate this
patent and thus lose its monopoly. This case was won in the invalidation because no 100% similar gene
sequence was found, so it remained valid. Since they were convinced that someone else had stolen the strain,
which was distinguishable by its appearance, the case was subsequently reopened. But in the end, instead of
a 100% comparison, only the specific fragments were compared. The current attitude of the court is inclined
to protect the original.
It is challenging for biological companies to defend their rights when the
technology they have developed is stolen, whereas the technology we have developed can prevent the strain
from being stolen by other companies to a certain extent, i.e., adding a layer of technical protection
before the legal process.
Competitor Analysis
At this stage, there are not many biotech companies that have developed similar
technologies, so we can easily capture market share. The beauty of our technology is that it gives a layer
of insurance to a specific strain. If the technology is further refined, it can be effectively protected
before patenting, and other legal procedures are applied.
Business Plan VIPatent
Abstract/Executive Summary & Company/Business Introduction
VIPatent is a biogenetic technology company located in the Shanghai Tsinghua
International Innovation Center and established long-term partnerships with the National High-Security
Laboratory of the Affiliated Xuhui District Central Hospital of Fudan University, China. We are committed to
providing patent protection technology for the various strains on the market to prevent infringement of the
strains. VIPatent have contacted experts in various fields, including genetic engineering, legal experts,
etc., and have entered into partnerships with other companies for mutual benefit.
Research Methods
The patented strain protection technology based on type VI secretion system
effector belongs to the pharmaceutical biology industry. The pharmaceutical and biological industry is a
national major development project, and with the continuous innovation of its industrial technology, the
whole industry's market scale keeps expanding. The whole biopharmaceutical industry chain can be divided
into upstream, midstream and downstream. The upstream is the production and development of raw materials and
products. The midstream is the biopharmaceuticals and businesses. The downstream is the various medical
businesses and the final consumers and patients who buy and use them. The main players in this industry are:
• The developers and their
companies.
• The manufacturers.• The
manufacturers.
• The stores that sell and the
patients and consumers.
As a national key development project, the threshold of the biomedical industry is
pretty high, and you need to have specific academic requirements to work in this industry. However, the
national pharmaceutical and biological industry is gradually growing, and the comprehensive economy is on an
uptrend. More and more patent applicants and new products are emerging, so the overall development prospects
are still very good. Either looking at the technical technology or economic trends, the pharmaceutical and
biological industry is progressing and growing with time, and the development speed is getting faster and
faster in recent years. From these aspects, the future development speed of the pharmaceutical and
biological industry will be qualitatively improved, and the Chinese market will get rid of generic drugs and
research more original drugs.
Under the current development cycle, China's pharmaceutical and biotechnology
industry is changing from mainly producing generic drugs to combining generic and innovative drugs. The
technological innovation capability of pharmaceutical and biological enterprises is the main driving force
for the structural adjustment of the pharmaceutical industry at this stage, which directly affects the
sustainable development capability and international competitiveness of enterprises. Therefore patent
protection becomes more and more important. Our main advantage at VIPatent is that we are the first to
develop a patented strain protection technology based on type VI secretion system effectors, so we have the
main resource and advantage in the market. However, although it is the first domestic research on this
technology and occupies most of the domestic resources, it also shows that this technology is not mature in
the country. It takes a higher risk while obtaining resources.
Market Analysis
Market structure
The patented strain protection technology for type VI secretory system effector is essential in the market. Our research is designed to be able to protect strain developers in their research and development effectively. Our primary user group is the strain development team. We now have a monopoly on this market. There is no equivalent technology on the market, and there are no methods or approaches to protect strain patents effectively. The market in China and some other countries is a monopoly market, and in the US, we are an oligopoly market. Nowadays, the only way to protect patients in need is through the law, but Chinese law only has provisions for commercial patents. The law is not complete enough for microorganisms, and it takes a lot of money and time to defend the rights through legal means. Many technical teams will give up on their rights because our technology can directly protect strains.
The patented strain protection technology for type VI secretory system effector is essential in the market. Our research is designed to be able to protect strain developers in their research and development effectively. Our primary user group is the strain development team. We now have a monopoly on this market. There is no equivalent technology on the market, and there are no methods or approaches to protect strain patents effectively. The market in China and some other countries is a monopoly market, and in the US, we are an oligopoly market. Nowadays, the only way to protect patients in need is through the law, but Chinese law only has provisions for commercial patents. The law is not complete enough for microorganisms, and it takes a lot of money and time to defend the rights through legal means. Many technical teams will give up on their rights because our technology can directly protect strains.
Target market and market segmentation/positioning
Our main target customers are bio-commercial organizations or researchers developing strains using E.coli as the primary vector. For our project, the Niche market is our target market. This market is mainly for a small segment of the population and is much smaller than the mass market. We chose this market to study the needs of biological institutions that are more in line with the research strains, and the small market avoids many competitors. The consumers of our product are mainly those who have developed their strain patents and want to protect their patents. Our product prevents them from having their product stolen and spending unnecessary time and effort in later legal proceedings. Being the first in the Chinese market to develop a patent protection technology for strains, we have no competitors in the Chinese market and an oligopoly. The entire market of bio-commercial organizations that develop themes belongs to our potential customers. At the same time, being the first R&D team also proves that the technology is not mature in the domestic market, leading to increased risk. Therefore, our product is positioned primarily as a patent-protected technology and one that can be legally recognized as proof of the strain's inventor.
Our main target customers are bio-commercial organizations or researchers developing strains using E.coli as the primary vector. For our project, the Niche market is our target market. This market is mainly for a small segment of the population and is much smaller than the mass market. We chose this market to study the needs of biological institutions that are more in line with the research strains, and the small market avoids many competitors. The consumers of our product are mainly those who have developed their strain patents and want to protect their patents. Our product prevents them from having their product stolen and spending unnecessary time and effort in later legal proceedings. Being the first in the Chinese market to develop a patent protection technology for strains, we have no competitors in the Chinese market and an oligopoly. The entire market of bio-commercial organizations that develop themes belongs to our potential customers. At the same time, being the first R&D team also proves that the technology is not mature in the domestic market, leading to increased risk. Therefore, our product is positioned primarily as a patent-protected technology and one that can be legally recognized as proof of the strain's inventor.
Execution: 4P Analysis
Product/Package
Our patent protection technology can help customers protect their strains from
illegal piracy to avoid lengthy and costly legal rights and trials. Our services can also be positioned on
the strains by a special encryption system, helping to have evidence in case of subsequent legal disputes
over intellectual property rights.
Price
Our technology is unique in today's market, so our pricing depends on the consensus
we reach with our customer companies. But even though our technology is the equivalent of a monopoly in the
market, we do not charge exorbitant prices, and we price it reasonably according to market rules and demand.
Promotion
We published relevant papers in major biological science journals, conducted field
visits to biotech companies, and promoted them at major corporate exhibitions. We also walked into major
universities to carry out popular science activities, co-branded with famous brands, and released products.
We also invite experts to give lectures to corporate executives and scientific researchers to promote our
technology and products.
Place/Distribution
Our main distribution sites are located in high-tech industrial parks in major
cities. We have established a service network in areas where large-scale biotechnology companies gather to
provide inquiries, planning, after-sales, and guarantee services. In addition, we have customized different
strategies for different large, medium, and small enterprises and dispatched corresponding technicians in
their companies. We have a fully transparent R&D laboratory at our corporate headquarters and conduct
courses or knowledge popularization activities within schools and communities. These methods can make our
products more advertised and then seize the opportunity to better our sales.
Evaluation
VIPatent offers strain patent protection technology that can be used to protect the
technical property rights of microorganisms. Because of the new biological research discoveries involved,
questions about patents have only recently arisen. For example, new industrial microbial fermentation
technologies affect all aspects of people's daily lives and are beginning to be produced on a large scale.
And this process leads to disputes over intellectual property rights, where microbial technologies may be
stolen and mass-produced between different companies or countries. However, the protection of
microbial-related intellectual property rights in China is complex, lengthy, and expensive.
Our technology contains two main innovative features and uses.
1) A unique biological encryption system is designed into the strain to ensure that
the stolen microbial technology cannot be used.
2) The encryption system leaves a mark in the strain so that later there is
evidence in case of an intellectual property dispute involving the law.
Conclusion
To sum up, we believe that with the effort of our team, our product and technology
can be very useful to biotechnology companies and research labs and make an impact in Intellectual property
protection in the field of biotechnology.
References:
21st Century Business Herald. "Value analysis of the pharmaceutical and biological
industry", Sina, 22 Sept. 2021, http://finance.sina.com.cn/tech/2021-04-16/doc-ikmyaawa9971398.shtml
Research Institute of Listed Companies in the Financial Industry. "Comparative
study of the three major pharmaceutical biotechnology innovation markets in China, the United States and
Japan" JRJ.com, 8 Sept. 2021, http://m.jrj.com.cn/rss/sohu/2020/9/8/30703751.shtml
Chr. Hansen. “Policies & Positions.” Chr. Hansen,
www.chr-hansen.com//en/about-us/policies-and-positions.
Silab. “Cosmetic.” About Us, www.silab.fr/silab-en-quelques-mots_usa.html.
Meyer, Pauline. “McDonald's Marketing Mix (4Ps) Analysis.” Panmore Institute, 20 Sept. 2020,
www.panmore.com/mcdonalds-marketing-mix-4ps-analysis.