27
Sucrochemistry Downloaded from pubs.acs.org by UNIV OF CALIFORNIA SANTA BARBARA on 09/20/18. For personal use only.
Hopes in a Sucrochemical Future A. J. VLITOS Tate & Lyle Ltd., Group R & D, Philip Lyle Memorial Research Laboratory, The University, Whiteknights, P.O. Box 68, Reading, Berks, RG6 2BX, England
I t i s a v e r y d i f f i c u l t t a s k t r y i n g t o summarize some o f t h e p a p e r s g i v e n i n t h e e a r l i e r s e s s i o n s , a n d d r a w i n g t o g e t h e r t h e 'Hopes i n a S u c r o c h e m i c a l F u t u r e . O b v i o u s l y a t a s k o f t h i s s o r t c a n n o t be done l i g h t l y f o r i t s h o u l d i n c l u d e some o f t h e h i s t o r i c a l p e r s p e c tive. I would l i k e t o begin f i r s t o f a l l by paying t r i b u t e t o t h e r e m a r k a b l e f o r e c a s t i n g done by D r . Hass i n t h e e a r l y days o f t h e Sugar Research Foundation. F o r , n o t o n l y w a s i t D r . H a s s who c o i n e d t h e t e r m " s u c r o c h e m i s t r y " b u t , i n f a c t , he l a i d t h e ground work w h i c h l e d t o t h i s S y m p o s i u m w h i c h we h a v e b e e n a t t e n d i n g these past three days. I t must be most s a t i s f y i n g t o D r . Hass t o have noted t h e broad expanse o f t h e s u c r o c h e m i s t r y i n t h e papers presented i n t h epast four sessions. But, i t i s i m p o r t a n t t o remember t h a t a l l o f t h i s w o r k was done on a v e r y s m a l l b u d g e t , b y t o d a y ' s s t a n d a r d s a n e x t r e m e l y s m a l l budget. I am s u r e D r . H a s s w o u l d a g r e e w i t h this. Indeed i t i sa t r i b u t e t o t h e e a r l y Foundation management t h a t s o much w a s a c h i e v e d , n o t o n l y w i t h s o l i t t l e money, b u t i n s u c h a s h o r t t i m e . P r o f e s s o r Hough showed u s t h a t t h e p o t e n t i a l f o r modifying t h e sucrose molecule i salmost l i m i t l e s s . I n f a c t , when o n e c o n s i d e r s t h e n u m b e r o f i t e m s t h a t h e has d e s c r i b e d t o u s , I t h i n k P r o f e s s o r Hough c o u l d work t h e r e s t o f h i s l i f e s y n t h e s i z i n g t h e n u m b e r s o f compounds t h a t a r e p o s s i b l e . N o t o n l y h a s P r o f e s s o r H o u g h g i v e n u s some i n t e r e s t i n g c h e m i s t r y , he has, i n f a c t , t r a i n e d a g e n e r a t i o n o f s u c r o s e c h e m i s t s , s e v e r a l o f whom f o l l o w e d i n t h e p r o g r a m , i n c l u d i n g , D r . K h a n , who g a v e a v e r y e l o q u e n t paper on t h e a c e t a t e s o f s u c r o s e , and P r o f e s s o r H a l l , who s h o w e d u s how n.m.r. s p e c t r o s c o p y c a n b e u s e d t o i d e n t i f y and probe sucrochemicals. Someone, n o t o f t h e Hough s c h o o l , P r o f e s s o r A v e l a , gave u s a v e r y i n t e r e s t 1
364
27.
VLiTos
Hopes in a Sucrochemical Future
365
i n g p a p e r a n d a v e r y g o o d p a p e r , o n how t o p r o d u c e t h e c h e l a t e s , and u s e these c h e l a t e s t o e f f e c t d i r e c t subs t i t u t i o n s o f hydroxyls i n the sucrose molecule. One i s b o u n d t o b e l i e v e t h a t t h e c h e m i s t r y i n a l l of these papers p r o v i d e s o p p o r t u n i t i e s t o be e x p l o i t e d in the future. T h i s , t h e n , was t h e f i r s t s e s s i o n t h a t had t o do w i t h fundamental c h e m i s t r y . I n t h e s e c o n d s e s s i o n , we s h i f t e d f o c u s t o t h e applications o f this sucrochemistry, the so-called,user technology. Obviously, the surfactants, surface coatings, sucrose-based urethanes, a l l are r e c e i v i n g a good d e a l o f a t t e n t i o n . We h e a r d a b o u t some new s u c r o s e e s t e r s u r f a c t a n t s from Dr. Parker o f Tate & L y l e , and t h e stage o f t h e d e v e l o p m e n t s o f o l d e r e s t e r s from Mr. Kosaka o f t h e R y o t o g r o u p a n d f r o m M r . B o b i c h o n f r o m Rhône-Poulenc. P r o f e s s o r B o b a l e k e x p l a i n e d how t h i s f u n d a m e n t a l c h e m i s t r y forms t h e base o f t h e pyramid o f e s s e n t i a l s i n t h e e x p l o i t i n g o f s u c r o c h e m i s t r y b y b u i l d i n g up u s e applications. He a l s o e s t a b l i s h e d some o f t h e p a r a meters t o be c o n s i d e r e d i n f u r t h e r development o f s u r face coatings e s t e r s . The p r o d u c t i o n o f s p e c i a l t y c h e m i c a l s v i a f e r m e n t a t i o n s o f s u c r o s e w a s shown t o h o l d a g r e a t p r o m i s e b y the s e v e r a l papers i n d i c a t i n g t h e f e a s i b i l i t y o f such p r o c e s s e s f o r s o l v e n t s , gums a n d p r o t e i n s u p p l e m e n t s . I t was o b v i o u s f r o m t h e s e a n d e s p e c i a l l y f r o m Dr. Weaver's a n d f r o m P r o f e s s o r B o b a l e k ' s p a p e r s t h a t , b e c a u s e o f t h e f o u n d a t i o n o f good r e s e a r c h i n s u c r o c h e m i s t r y i n t h e p a s t , t h e s u g a r i n d u s t r y now i s i n a much b e t t e r p o s i t i o n t o e n t e r t h e e n e r g y r a c e . Through t h i s w o r k , i n f a c t , we c a n b e g i n t h e r a c e w i t h a b i t o f a head s t a r t . U n f o r t u n a t e l y , t h e r e h a v e b e e n t o o many stops and go's i n t h e s u c r o c h e m i c a l programs, p a r t i c u l a r l y those supported by t h e Sugar Research Foundation, as w e l l a s e l s e w h e r e . Because t h i s has been t r u e i n the p a s t ; t h e r e h a s emerged c o n s i d e r a b l e s k e p t i c i s m about sucrochemistry. The r e v i e w s b y Dr. Sheppard and D r . L u b e r o f f d i s p l a y e d some o f t h a t s k e p t i c i s m , a n d some o f i t i s j u s t i f i e d . I t seems i m p o r t a n t , t h e r e f o r e , t o t r y t o r a t i o n a l i z e t h e arguments f o r and a g a i n s t sugar as a p o s s i b l e s u b s t i t u t e f o r petrochemicals i ni n d u s t r i a l chemistry. What a n t a g o n i s m s a r e l i k e l y t o come u p ? S u c r o c h e m i s t r y meets q u e s t i o n s which e s s e n t i a l l y a r e economic. One n o t e s t h a t , i f t h e r e i s t o b e a s i g n i f i c a n t i n c r e a s e i n t h e amount o f c a n e s u g a r t h a t i s t o b e p r o d u c e d , i t i s b o u n d t o come at a market p r i c e which i s h i g h e r than t h e present world price. S i m i l a r l y , t h e r e w i l l be i n c r e a s e d p r e s sures on sugar produced from beets. Farmers i n Europe
366
SUCROCHEMISTRY
always are demanding h i g h e r p r i c e s f o r t h e i r c r o p . One n o t e s , t h e r e i s b o u n d t o b e i n c r e a s e d p r e s s u r e f r o m m a i z e , e s p e c i a l l y on t h e C o n t i n e n t . As new maize v a r i e t i e s are i n t r o d u c e d i n Europe, there i s l i k e l y t o be p r e s s u r e f o r e v e n h i g h e r b e e t p r i c e s . T h i s , i n t u r n , w i l l r e s u l t i n h i g h e r sugar p r i c e s . B u t , w h a t i s t h e i m p o r t a n t k e y , one w o u l d b e l i e v e , i s i n the l o n g run d i f f e r e n t i a l between the i n c r e a s e d p r i c e s f o r s u g a r and t h e i n c r e a s e d p r i c e s f o r p e t r o chemicals. I t seems r e a s o n a b l e t o c o n c l u d e t h a t p e t r o c h e m i c a l p r i c e s w i l l i n c r e a s e more r a p i d l y t h a n s u g a r p r i c e s , a n d t h a t t h e r e w i l l be e n o u g h s u g a r a t c o m p e t i t i v e p r i c e s t o compete — in certain, specialty chemical markets. Now, I have s t r e s s e d t h a t , i n the s h o r t term, s u c r o s e w i l l compete w i t h p e t r o c h e m i c a l s only i n s p e c i a l t y chemicals markets. I n t h i s we a g r e e w i t h t h e p r e v i o u s s p e a k e r s t h a t we s h o u l d n o t l o o k f o r short term, major markets f o r sugar t h a t are going t o match or even approach the s c a l e of markets i n foods, t o w h i c h t h e i n d u s t r y has been accustomed. The new o p p o r t u n i t i e s a r e g o i n g t o be i n s p e c i a l t y m a r k e t s f o r high p r i c e d commodities. Y e t , i t s h o u l d be s t a t e d t h a t s u c r o s e w i l l n o t be c o m p e t i n g w i t h e t h y l e n e ; i t w i l l be c o m p e t i n g w i t h e t h y l e n e d e r i v a t i v e s w h i c h , i n f a c t , c o s t more t h a n e t h y l e n e by f a c t o r s o f two o r t h r e e . Now, t h e s e c o n d q u e s t i o n p u t b e f o r e y o u concerns i n v e s t m e n t s b y t h e o i l i n d u s t r y , t o be made i n new e t h y l e n e p l a n t s and i n t h e A m e r i c a n p l a n t s t o e x p l o i t coal resources. How w i l l t h e s e a f f e c t t h e c h a n c e s o f sucrose chemistry? The i n t e r e s t i n g p o i n t h e r e i s t h a t t h e c a p i t a l i n v e s t m e n t i n an e t h y l e n e p l a n t t o d a y i s r o u g h l y f o u r t i m e s w h a t i t was i n t h e e a r l y 'TO's. These e t h y l e n e p l a n t s a r e naptha c r a c k i n g p l a n t s . A r e c e n t s t u d y by a European e t h y l e n e p r o d u c e r i n d i c a t e d t h a t he w o u l d h a v e t o s e l l e t h y l e n e a t a b o u t £450 t o £600 p e r t o n b y 1 9 8 5 , n o t e v e n a l l o w i n g f o r i n f l a t i o n , t o o b t a i n a d e c e n t r e t u r n on h i s c a p t i a l i n v e s t ment. So e t h y l e n e i s g o i n g t o be v e r y e x p e n s i v e . W h e t h e r s u g a r i s g o i n g t o be t h a t e x p e n s i v e o r n o t , c a n n o t p r e s e n t l y be p r e d i c t e d p r e c i s e l y b u t , e i t h e r way, t h e s u g a r p r o d u c e r s w o u l d n o t m i n d v e r y much. A s f o r e x p l o i t a t i o n o f c o a l i n t h e U.S., this also i s bound t o i n v o l v e heavy c a p i t a l i n v e s t m e n t s . One d o u b t s v e r y much t h a t t h e p e t r o c h e m i c a l s w h i c h r e s u l t f r o m a new c o a l e x p l o i t a t i o n w i l l be a n y l e s s e x p e n s i v e than o i l - d e r i v e d products. The t h i r d q u e s t i o n t o a s k i s w h e t h e r t h e c h e m i c a l i n d u s t r y i s geared t o handle carbohydrate feed s t o c k s as s t a r t i n g m a t e r i a l s . The a n s w e r i s t h a t t h e r e a r e
27.
VLiTos
Hopes in a Sucrochemical Future
367
few, i f a n y , m a j o r c h e m i c a l companies w h i c h a r e s e r iously developing a l t e r n a t i v e chemical feed stocks. One o r t w o s m a l l e r c o m p a n i e s h a v e e x p r e s s e d i n t e r e s t i n sucrose chemistry, but these mainly, are f o r specialty chemical applications. One may a s k how many s u g a r c o m p a n i e s h a v e c o n s i d e r e d s e r i o u s l y d i v e r s i fying into the chemical f i e l d . E i t h e r alone o r i n p a r t n e r s h i p w i t h a c h e m i c a l company, a r e t h e y w i l l i n g t o d e v e l o p t h o s e s u c r o s e c h e m i c a l s w h i c h seem e c o n o m i c a l l y v i a b l e t o d a y a n d l i k e l y t o become e v e n m o r e s o i n the f u t u r e ? One may c o n c l u d e t h a t t h e r e a r e t w o p o t e n t i a l w e a k nesses i n t h e p r e s e n t sucrochemistry programs. The p r o g r a m i s u n l i k e l y t o c o n v i n c e t h e g i a n t s i n t h e chemi c a l i n d u s t r y t o a d o p t , w h a t i s f o r t h e m , a new t e c h n o l ogy, as w e l l as an u n f a m i l i a r f e e d s t o c k . The s u g a r i n d u s t r y , i t s e l f , seems a t t h e moment t o l a c k t h e e x p e r t i s e o r the entrepreneurship t o enter the chemicals markets. T h i s may s o u n d r a t h e r p e s s i m i s t i c , b u t p e r haps i t i s r e a l i s t i c . Those i n t h e sugar i n d u s t r y w i l l have a p o s s i b i l i t y i f t h e y c a n f i n d some e f f e c t i v e means o f e f f e c t i n g c o o p e r a t i o n w i t h t h e chemical i n d u s t r y , perhaps i n j o i n t v e n t u r e s o f t h e t y p e d i s p l a y e d i n t h e R y o t o Company, o r g a n i z e d between D a i Nippon Sugar and M i t s u b i shi Chemicals. I t i s t h i s s o r t o f l i n k and j o i n t v e n t u r e , t h a t seems t o b e t h e way m o s t l i k e l y r e a l l y t o d e v e l o p and e x p l o i t t h e fundamental s u c r o c h e m i s t r y f o r which t h e I n t e r n a t i o n a l Sugar Research Foundation has been p a y i n g f o r t h i s t h i r d o f a c e n t u r y . However, i t would be a m a j o r m i s t a k e t o o v e r l o o k the p o t e n t i a l s o f sucrochemistry j u s t because i t s commercial v i a b i l i t y has y e t t o be r e a l i z e d . One m u s t k e e p i n m i n d t h e r e w a s a t i m e when p e t r o c h e m i c a l s o r petroleum's major markets were i n p a t e n t m e d i c i n e and cough d r o p s . One c a n b e c o n v i n c e d t h a t t h e s u g a r c h e m i s t r y , t h e s u b j e c t o f t h i s Symposium f o r t h e p a s t f e w d a y s d e f i n i t e l y w i l l l e a d t o some o f t h e s p e c i a l t y p r o d u c t s o f t h e l a t e '80s o r e a r l y ' 9 0 s . On t h i s o p t i m i s t i c n o t e , I w o u l d l i k e t o r e m i n d you o f Oscar W i l d e ' s a p t p h r a s e t h a t , " I t ' s dangerous to prophesy, e s p e c i a l l y about t h e f u t u r e " . 1
Abstract It is timely to be thinking about a "sucrochemical future" at a time when there is considerable concern about shortages of conventional sources of energy. For sucrose represents a unique substance - one of the major products resulting from the conversion of solar
368
SUCROCHEMISTRY to chemical energy by higher plants. This fact is going to be of increasing significance because, in the long run, it is the products of photosynthesis which may have to replace our diminishing supplies of fossil fuels. Thus,when one looks into the "sucrochemical future" it is to anticipate the use of sucrose and other sugars as chemical feedstocks or as fermentation substrates to produce a vast array of chemical products which today depend almost entirely upon petrochemical feedstocks. This paper discusses those processes based on sucrochemistry which stand the best chance of competing economically with petrochemicals both in the short- and long-term. Special emphasis is placed on the use of sucrose to produce sucrose surfactants employing simple techniques or, at the most, intermediate level technologies. Biographic Notes Professor A.J. Vlitos, Ph.D., Dir. and Chief Exec. of R & D. Educated at Oklahoma State Univ., Harvard Univ., Iowa State Coll. and Columbia Univ. He was a senior plant physiologist at the Boyce Thompson Inst, for Plant Res. Inc.; in 1959 he joined Tate & Lyle Ltd. in Trinidad, and in 1966 was appointed to his present post. He is Honorary Visiting Prof., Depts.of Biology and Chem., Queen Elizabeth College and Visiting Prof. at Univ. of Reading. Philip Lyle Memorial Research Laboratory, Univ. of Reading (Tate and Lyle, Ltd.). P.O. Box 68, Berkshire RG6 2BA, England.
Discussion
Question: D r . M a r c y , how d o t h e I S R F p a t e n t i n g and l i c e n s i n g p r o g r a m s a n d t h e l i c e n s e t e r m s u s e d f i t i n t o t h e o t h e r programs o f p a t e n t i n g and l i c e n s i n g t h a t Research C o r p o r a t i o n c a r r i e s on? Are the licensing terms t y p i c a l , o r a r e they unusual? How d o y o u compare t h e ISRF program w i t h t h o s e c a r r i e d on f o r o t h e r people? Dr. Marcy; I t a l l depends on what k i n d o f t e c h nology you a r e t a l k i n g about. The g e n e r a l t e r m s i n the ISRF-type o f l i c e n s e a r e v e r y s i m i l a r t o t h e gene r a l terms i n any o t h e r l i c e n s e s . As I mentioned i n my t a l k , t h e r e i s n o b a s i c d i f f e r e n c e b e t w e e n l i c e n s i n g s u c r o c h e m i c a l s and o t h e r t y p e s o f c h e m i c a l s . T h i s l e a d s one t o compare, t h e n , t h e f i n e s t r u c t u r e of a l i c e n s e . I f one i s t a l k i n g a b o u t a p h a r m a c e u t i c a l , o r a d r u g , o r some f i n e c h e m i c a l , t h a t h a s a r e l a t i v e l y l i m i t e d market, g e n e r a l l y the r o y a l t y r a t e s a r e h i g h e r ; a common a r r a n g e m e n t i s 5 t o 10 p e r c e n t o f the n e t s a l e s p r i c e o f t h e product i n t h e f i n a l packaged form. R o y a l t i e s a r e c o l l e c t e d on t h e package as w e l l as t h e m a t e r i a l . W i t h sugar e s t e r s , and i n t e r mediate and heavy c h e m i c a l s , n o r m a l l y t h i s i s n o t p o s sible. Here, t h e r o y a l t y r a t e i s based on t h e n e t sales value o f the product i n bulk form t o w h o l e s a l e r s . T h e s e r o y a l t y r a t e s may r u n f r o m 3 t o 7 p e r c e n t . I t h i n k t h a t t h e o r i g i n a l f i g u r e f o r sugar e s t e r l i c e n s e s , t w o p e r c e n t , was o n t h e l o w s i d e ; i t c o u l d have been up t o f i v e p e r c e n t . Nonetheless, the J a p a n e s e l i c e n s e e came b a c k a f t e r a f e w y e a r s a n d s a i d t h a t t h e y t h o u g h t t w o p e r c e n t was t o o h i g h , a n d s o t h e r o y a l t y r a t e s w e r e r e d u c e d , u s i n g a s l i d i n g s c a l e downward, based on t h e volume o f p r o d u c t s . That i s anot h e r u s u a l way o f d o i n g i t . I n t h e e l e c t r o n i c s and e l e c t r i c a l i n d u s t r y , gener369
370
SUCROCHEMISTRY
a l l y r o y a l t y r a t e s run lower. T h e y r u n f r o m 0.5 p e r c e n t up t o p e r h a p s , t h r e e p e r c e n t . In the mechanical a r t s a r e a , l i c e n s e r a t e s w i l l b e i n t h a t same r a n g e . I t i s m o r e d i f f i c u l t t o l i c e n s e m e c h a n i c a l d e v i c e s on a p e r c e n t a g e o f s e l l i n g p r i c e b a s i s , as m e c h a n i c a l dev i c e s f r e q u e n t l y a r e components o f a l a r g e r p i e c e o f machinery. In t h i s s i t u a t i o n i t i s p r e f e r a b l e to set t h e r o y a l t y on a c e n t s p e r u n i t b a s i s . I do n o t t h i n k that i s applicable i n licensing chemicals. f
Question; Dr. M a r c y , you m e n t i o n e d t h a t you have f o u r I S R F p a t e n t a p p l i c a t i o n s i n p r o c e s s a t t h e moment. Would you t e l l what t h e y a r e ? Dr. Marcy: pleased to. Mr.
With
Sarault:
You
permission
h a v e my
from ISRF I would
be
permission.
Dr. Marcy: One c o v e r s t h e i n v e n t i o n s a n d d i s c o v e r i e s o f Mr. F a u l k n e r , o f t h e P a i n t R e s e a r c h A s s o c i a t i o n , who d e s c r i b e d h i s w o r k o n s u r f a c e c o a t i n g s u c r o s e r e s ins (Chapter 13). A s e c o n d c o v e r s t h e d i s c o v e r i e s and i n v e n t i o n s o f Dr. P o l l e r i n t h e m e t a l l o - s u c r o s e d e r i v a t i v e area (Chapter 11). A t h i r d c o v e r s i n v e n t i o n s and d i s c o v e r i e s o f Dr. G a r d n e r , whose work has n o t been d i s c u s s e d a t t h i s symposium. His technology involves a s u c r o s e - b a s e d p o l y m e r i c m a t e r i a l f o r use i n dimens i o n a l l y s t a b i l i z i n g wood. The f o u r t h one c o v e r s P r o f e s s o r Hough's w o r k on c h l o r o s u c r o s e s ( C h a p t e r 2 ) . A p p l i c a t i o n s c o v e r i n g a l l o f t h e s e i n v e n t i o n s a r e bei n g f i l e d i n t h e U n i t e d Kingdom f i r s t and t h e n , w i t h i n t h e " c o n v e n t i o n y e a r , " i n t h e U n i t e d S t a t e s and i n p e r h a p s 15 t o 20 c o u n t r i e s a r o u n d t h e w o r l d . Question: What i s t h e a p p r o x i m a t e w o r l d u s e sucrose e s t e r s ?
of
Dr. Marcy: I do n o t h a v e t h a t i n f o r m a t i o n a v a i l able. A s I m e n t i o n e d , t h e r e a r e two m a j o r l i c e n s e e s , one i n J a p a n a n d one i n F r a n c e . The s a l e s o f t h e s e m a t e r i a l s c a n be a p p r o x i m a t e d f r o m t h e r e p o r t s o f t h e r o y a l t y payments, which, again o n l y w i t h p e r m i s s i o n f r o m I S R F may I d i s c l o s e . Mr.
Sarault:
You
h a v e my
permission.
Dr. Marcy: L a s t y e a r ' s r o y a l t y p a y m e n t was $35 $40,000. A t a two p e r c e n t r o y a l t y r a t e , s a l e s o f a b o u t $ 2 , 0 0 0 , 0 0 0 w o u l d be i n d i c a t e d f o r t h e s e two c o u n -
371
DISCUSSION
tries. The s u c r o s e e s t e r p a t e n t s e x p i r e d t h i s y e a r , so t h i s y e a r ' s r o y a l t i e s a r e n o t r e a l l y i n d i c a t i v e . In a d d i t i o n , Tate & L y l e i s m a r k e t i n g an e s t e r i n t h e U n i t e d Kingdom, and t h e r e a r e s m a l l amounts o f s u g a r e s t e r s manufactured by other processes t h a t a r e markete d i n some o t h e r c o u n t r i e s , p a r t i c u l a r l y i n B e l g i u m , H o l l a n d and Germany. B u t , these are minor. As f a r as I know, t h e r e a r e no s a l e s i n I t a l y , t h e U n i t e d S t a t e s and Canada. In other countries of the world, as f a r a s I know, t h e r e a r e no s a l e s . Someone m o r e f a m i l i a r w i t h t h e a c t u a l m a r k e t i n g o f e s t e r s may h a v e some a d d i t i o n a l i n f o r m a t i o n . Do y o u , Professor Vlitos? Professor Vlitos:
No, I do n o t have any f i g u r e s .
Dr. M a r c y ; D o e s a n y o n e know i f t h e r e i s a n y manuf a c t u r e and s a l e o f sugar e s t e r s i n t h e E a s t e r n b l o c countries? Dr. H i c k s o n : sugar e s t e r s . Dr. M a r c y : unfortunately.
The R u s s i a n s
Patents
h a v e some p a t e n t s
on
are not equivalent to sales,
Question: What i s t h e c o s t o f w o r l d w i d e p a t e n t c o v e r a g e , and d o e s t h e c o s t go up o v e r t h e y e a r s ? And, i s i t an e c o n o m i c a l t h i n g t o d o , u n l e s s y o u a r e a b s o l u t e l y c e r t a i n t h a t t h e p r o d u c t s h a v e r e a l commercial possibilities? Dr. Marcy: One i s n e v e r a b s o l u t e l y c e r t a i n a b o u t anything. T h e r e f o r e , i n t h i s a r e a , as w i t h any chemic a l r e s e a r c h , y o u h a v e t o make some v a l u e j u d g m e n t s . These m a t e r i a l s and t h i s work t h a t h a s b e e n done w i t h I S R F money a r e s t i l l q u i t e b a s i c . Much a d d i t i o n a l f u n d i n g has t o be expended f o r f u r t h e r r e s e a r c h and development. I f y o u a d d t o t h i s t h e money t h a t o n e would have t o spend t o g e t Food and Drug A d m i n i s t r a t i o n c l e a r a n c e s o n some o f t h e s e p r o d u c t s , y o u r e a c h i n t o t h e m i l l i o n s o f d o l l a r s b e f o r e y o u even g e t on t h e market. V a l u e judgments on whether o r n o t t o spend money f o r p a t e n t i n g c a n b e a f f e c t e d b y t h e s e f a c t o r s . My p e r s o n a l f e e l i n g i s t h a t t h e c o s t o f p a t e n t i n g i s r e l a t i v e l y s m a l l compared t o t h e c o s t o f f u r t h e r r e s e a r c h and development and market r e s e a r c h . Generally s p e a k i n g , people t e n d t o f i l e f o r p a t e n t s and p r o s e c u t e them f a i r l y q u i c k l y , w i t h v e r y l i t t l e a s s u r a n c e t h a t they a r e g o i n g t o have any c o m m e r c i a l p r o d u c t s .
372
SUCROCHEMISTRY
You a l s o h a d a q u e s t i o n a s k i n g i f p a t e n t c o v e r a g e c o s t s more a s t i m e goes o n . Practically a l l of the c o u n t r i e s o f t h e w o r l d t h a t have p a t e n t systems have annual maintenance f e e s , o r working requirements f o r keeping patents i n force. I n some c o u n t r i e s , t h e f e e s are p r o g r e s s i v e l y g r e a t e r each year d u r i n g the l i f e o f the p a t e n t , and sometimes they e s c a l a t e v e r y r a p i d l y . T h e r e f o r e , what one does i s t o f i l e f i r s t , a t a r e l a t i v e l y l o w c o s t , and t h e n t r y t o g e t t h e p r o d u c t on market as soon as p o s s i b l e . I f the products are v a l u a b l e c o m m e r c i a l l y , t h e y w i l l pay f o r t h e added c o s t s of maintenance. I f t h e y a r e n o t b e i n g u s e d commerc i a l l y i n a g i v e n c o u n t r y , s i m p l y do n o t pay t h e maint e n a n c e f e e s , and t h e p a t e n t becomes abandoned. In t h e U n i t e d S t a t e s and Canada t h e r e a r e no m a i n t e n a n c e f e e s , a l t h o u g h they have been d i s c u s s e d . Thus, i n these c o u n t r i e s , the t o t a l costs are simply the o r i g i nal f i l i n g and p r o s e c u t i o n c o s t s . A U.S. p a t e n t a p p l i c a t i o n o f t h e s o r t t h a t o n e would f i l e i n t h e case o f sucrochemicals probably would c o s t i n t h e o r d e r o f $2,000 t o $3,000, j u s t f o r t h e filing. T h i s c h a r g e c o v e r s t h e a t t o r n e y who d r a f t s and f i l e s t h e a p p l i c a t i o n a n d t h e f i l i n g f e e s . Filing i n o t h e r c o u n t r i e s , once f i l i n g has been accomplished i n one c o u n t r y , i s s i m p l e r and l e s s c o s t l y p e r c o u n t r y , except f o r t r a n s l a t i o n c o s t s . Translation costs are f a i r l y high i n Japan, but i n a French-speaking o r German-speaking c o u n t r y , t h e c o s t i s on t h e o r d e r o f a few h u n d r e d d o l l a r s p e r p a t e n t . F i l i n g i n 15 m a j o r c o u u t r i e s a r o u n d t h e w o r l d w o u l d c o s t f r o m $10,000 t o $15,000. Question: Would y o u t e l l u s , r o u g h l y , what i s t h e b r e a k d o w n o f t h e $10,000 t o $15,000; what f r a c t i o n does Research C o r p o r a t i o n pay and what f r a c t i o n d e v o l v e s upon ISRF? Dr. Marcy: The agreement b e t w e e n R e s e a r c h Corporat i o n and ISRF c a l l s f o r Research C o r p o r a t i o n t o e v a l u ate i n v e n t i o n s t h a t a r e submitted t o Research Corporat i o n b y I S R F , a n d make a d e c i s i o n a s t o w h e t h e r i t i s w o r t h w h i l e t o go f o r w a r d w i t h p a t e n t i n g a n d l i c e n s i n g . I f we d e c i d e i n a p o s i t i v e d i r e c t i o n , t h e n we u n d e r take t o get patent coverage,and maintain those patents; to handle any i n t e r f e r e n c e s , o r i n f r i n g e m e n t s t h a t m i g h t come u p d u r i n g t h e l i f e o f t h e p a t e n t ; a n d t o c o l l e c t the r o y a l t i e s , a l l a t our expense. ISRF i s charged nothing f o r t h i s s e r v i c e . I f a n d when i n c o m e i s r e c e i v e d , however, t h e agreement c a l l s f o r Research Corporation t o share i t w i t h the i n v e n t o r ( a t whatever
DISCUSSION
373
p e r c e n t a g e t h e i n v e n t o r i s d e s i g n a t e d t o g e t , by I S R F ) and I S R F . A f t e r t h e p a y m e n t t o t h e i n v e n t o r , t h e d i s t r i b u t i o n b e t w e e n t h e two o r g a n i z a t i o n s i s 50:50. Dr. Weaver: By t h e t i m e t h e s e p r o c e e d i n g s a r e p u b l i s h e d , P r o c t o r and Gamble w i l l have d i s c l o s e d t h a t t h e s u c r o s e o c t a e s t e r o f a h i g h e r f a t t y a c i d , s u c h as s t e a r i c , w i l l i n h i b i t the d e p o s i t i o n of c h o l e s t e r o l . It b o g g l e s the mind what m i g h t happen t o sugar e s t e r p r o d u c t i o n f i g u r e s i f e v e n one g r a m o f o c t a e s t e r o f s u c r o s e were put i n t o each p i n t o f C r i s c o .
