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Exosect Limited focuses on the development and sales of intelligent pest management solutions.
Its innovative and cost-effective products help growers, food producers, food storers and food processors to reduce reliance on conventional chemical insecticides. It aims to assist growers to achieve lower levels of chemical residues, if any, in their crops and produce high quality food for the consumer. The company’s products are used globally in a wide range of sectors including crop protection, (agriculture, horticulture and stored products), amenity and public health.
CIPM was asked by Oxford Capital Partners, for whom CIPM had worked previously, to assess the commercial prospects for Exosect’s technology, including their IP, as they were considering investing in Exosect.
We undertook an extensive review of US and European published patent documents as well as copies of unpublished applications. We reviewed the age of the patents, looked for a continuous patent line and made certain recommendations, including that Exosect had the opportunity to start patenting more actively. We also held meetings with Exosect to discuss their technology in depth, their timescales, and the focus of the business.
In our view, the technology and IP of the company was robust. Exosect, originally a spin-off from Southampton University, is unusual in that the solutions to pest control are based on using natural substances to control pest numbers. Although it has long been thought that this would be a good approach, Exosect is one of the first companies to have practical applications with proven efficacy based on such technology.
Many CIPM employees, as well as being qualified patent attorneys, consultants and advisors, also have a background in specific industry sectors. One of these is life sciences. Lionel Scott, patent consultant at CIPM, worked in the agronomical/horticultural sector (plants and seeds) for a very large seed company in Europe where he was responsible for the research divisions in Holland and France, liaising with other commercial and research divisions worldwide. He has also worked for ICI Australia where he was responsible for patenting the herbicides and pesticides in the life sciences division. His experience in the field meant that he understood not only the technology but also the commercial drivers behind Exosect’s products. He was able to see clearly that the technology is innovative and that the opportunities for technical advances looked good. The prospects for early product forms looked promising, the relative risks appeared low, and there was plenty of scope for further patenting.
Based on the significant opportunities of Exosect technology combined with the security of robust IP, Oxford Capital Partners decided to proceed with their investment and led a consortium of two other venture capital funds who also invested in Exosect.
Exosect continued discussions with CIPM and we now look after Exosect’s IP portfolio. Rebecca Todd, Investment Manager at Oxford Capital Partners, commented, “We were particularly pleased that the IP review was of strategic use to the company as well as to OCP and other investors. As well as providing IP due diligence, Lionel’s in-depth understanding of the subject manner and market opportunity brought a new and valuable insight to the investment. “
Exosect’s IP requirements include the need for patenting advice, the drafting and filing of patent applications and prosecution before the various patent offices, and advising on other IP situations and commercial circumstances. CIPM is prosecuting filed IP in various states, has managed foreign filings and provided comments on third party IP and inventorship issues. Currently we are undertaking opinion work – including whether third party IP is a threat, understanding the commercial drivers for filing further IP, and advising on the timing of patent filings and advising on the competitive landscape. The new inventions will mature into subject matter for patent applications which we will prepare and file.
“We have been impressed by CIPM’s understanding of our market and their enthusiasm for what we are doing. They have a ‘hands-on’, pragmatic approach and their commercial acumen has been very beneficial,” said Martin Brown, Managing Director, Exosect Limited.
October 2009
