R&D Incentives and IP Protection for Aquaculture Farms Tracey Murray Griffith Hack Consulting

What is Intellectual Property? Intellectual property is an asset - but not what is known as a ‘tangible asset’, such as tanks, sheds, trucks, etc. It is termed an ‘intangible asset’, and commonly takes the form of trademarks, brand names, business names, patents and registered designs. Intellectual property can also be unregistered, such as trade secrets, secret formulations, employee knowledge, etc.

Why is Intellectual Property important in the aquaculture industry? Often, aquaculture produces a commoditised product (similar to red meat industry). As a commodity, IP is often the ‘asset’ that can give you a competitive advantage via brand name, trade mark or a patented product or process. IP is often the key to success for industries in the aquaculture industry.

Trademarks and Brands Compared to other agribusiness, the prawn and barramundi industry is under represented when it comes to registered trademarks – examples include:  Exmouth Wild Prawns  Crystal Bay Tiger Prawns  Knowbashi Prawns  Love Australian Prawns  Prawn Star  Cone Bay Ocean Barramundi  Australian Barramundi  Sustainable Barramundi

Trademarks and Brands You may spend hundreds of thousands of dollars on R&D to produce the best quality prawns and barramundi in Australia. But if you don’t brand or trademark your product, what’s to distinguish it from any other prawn or barramundi in the world? And what's to stop anyone else registering your unregistered brand/trade mark.

Examples of Trademarks  Gold Coast Tiger Prawns  Crystal Bay Tiger Prawns But what's to stop me registering:  Seafarm Tiger Prawns  Coral Sea Tiger Prawns  Pacific Reef Tiger Prawns  Australian Tiger Prawns  Rocky Point Tiger Prawns  Cone Bay Tiger Prawns  Coffin Bay Tiger Prawns

What about technology? How can I protect ideas? Many companies in the prawn and barramundi industry conduct significant R&D in order to address day to day technical issues. These activities are often the subject of grants (i.e. R&D Tax Incentive). The results can either be protected by secret knowledge or a patent.

Patents – protect and infringement  Australia has an ‘innovation patent system’ that provides 8 years protection, but only in Australia.  Standard Patent – 20 years exclusive use.  What if you are infringing technology? o Aquaculture net with walls with different wire direction. o Aquaculture net with different densities of weight. o Method for modifying protein structure in finish shaped feed pellets.

How to maximise your IP?  Think strategically about trademarks and branding – register/protect your brand.  Know what your competitors are doing – regular trademark/patent searches.  Think about what are the most important aspects of your business and make sure they are protected.  If you have a great idea – you protect your exclusive rights and can perhaps licence the technology to others.

Finally – Government Incentives  R&D Tax Incentive - only a small % of prawn and barramundi participants claim. o If in losses – can get 45c in the $1 refund. o If in profit – tax credit between 10c – 15c in the $1.  EMDG – up to 50c in the $1 refund for overseas conferences, marketing trips, market research, etc. to support your push into export markets.  Other state/federal brand grants – Tasmania/SA/Victoria best states for grants to expand, put on more staff, commercialise technology etc.

Questions?