6
Who is likely to be developing the technologies?
Not just the recognised main players. It is possible
that international oil companies and major service
companies may view the UK market as being too
small to justify the R&D investment required to solve
UK-specific technical challenges. As such, there may
be an opportunity for existing and new UK operators
and perhaps smaller service companies to fill the gap.
What are the IP implications?
Companies which develop and protect technology
which provides the optimum balance of production
efficiency and safety have the potential to secure
much of the UK market, and other similar overseas
markets which may follow as the international shale
gas industry develops.
This brings about an opportunity for first-movers to
establish strong IP positions, supplying technologies
to which the entire industry requires access in order
to operate in compliance with the regulations. If the
enabling technologies are properly protected with
appropriate IP rights, these first-movers could acquire
lucrative monopolies.
For example, by adopting a canny approach to IP, the
supplier of the best-available chemical containment
system could find itself in the holy grail of IP positions,
where regulation requires the industry to use its
proprietary technology, meaning that every operator
in the industry must pay royalties to license the
technology in order to continue operating.
Why protect the technology with patents?
Although key enabling shale gas extraction
technologies discussed above may be developed
and initially used in the UK, if appropriately patent
protected in the UK and abroad, those technologies
could subsequently be licensed into other territories
facing similar needs. Energy security is becoming an
increasing concern, with relations in Russia and parts
of the Middle East becoming more strained, and so
shale gas looks likely to become more important to
countries affected by these issues. If the UK shale
gas industry can lead the way in the new exploration
and extraction technologies required, and license
them for use in other countries, the industry may
provide IP licensing income to the UK economy in
addition to the energy it generates.
In any field of technology, standardisation and
regulation give rise to significant opportunities
for IP-savvy organisations. Where standards or
regulation drive the entire industry to adopt a
particular technology, the owner of patents covering
that technology will be in a very strong commercial
position, as competitors have to agree to license the
patented technology, albeit on reasonable terms,
in order to operate in the market.
Successes in getting proprietary technology
into industry standards have seen large licensing
revenues for key players in areas such as the
mobile telecoms industry, CD, DVD and Blu-ray
technology. Similar rewards could be available for
the key first-movers in the UK shale gas industry,
if appropriate IP protection is put in place to protect
new technical developments.
To find out more
contact Stuart Latham
IPreview
summer
2015
or Russell Edson
A fracking opportunity for
UK oil & gas innovators
