Innovation in the cosmetics industry

Elaine EggingtonPrincipal Consultant, IP Pragmaticselaine.eggington@ip-pragmatics.com

IP Asset Management – Our Approach

IP Value Creation• Auditing

• Diligence

• Valuation

• Market Assessments

• Business Development

• Partner Identification

• Commercialisation and Deal Making Support

• Contract negotiation

• Business Plans

• Fund raising

IP Cost Management• Renewal Payments

(IPRIS)

• Nationalisation

• European Validation

IP Foundations• Strategy

• Policy

• Training

Clients

Selected Projects Australian Bioactives – Tasmanian native plant extracts with

anti-ageing properties University of Bangor – bluebell extracts Marinova – fucoidan extracts from seaweed for cosmetics and

functional foods BEACON Project at IBERS, Aberystwyth – investigation of

novel ingredients and uses of products from plants, esp forage grasses; horizon scanning to identify feedstocks and end products for the HiPLExSon project

Royal Botanic Gardens at Kew – business case for a partnership with the Red List Project for a range of ethically sourced essential oils and fragrances

Innovation in the Cosmetics Industry

What is innovation? Types & sources of innovation, current trends Intellectual property and natural cosmetic

ingredients Patent landscape Innovation in natural ingredients Conclusions

What is Innovation?

matching what is possiblewith what is needed

to create economic value or social good or both

- Prof Roy Sandbach

Innovation in Cosmetics

Ingredients

Product typePackaging

Formulation

Production

Some Trends

Rise of well-being Natural with sustainable, fair, ethical sourcing Ageing consumers, increasing sophistication Personalisation and smart products Early tech adoption eg liposomes, nanotechnology Multifunctional products eg “alphabet creams”, night-time

products Different forms and textures, eg water-activated or mixed

products, foams, jellies Cosmeceuticals and scientific evidence Biotechnology

Sources of Innovation –A Fragmented MarketEuropean Cosmetics and Toiletries IndustryNo. of companies operating in the EU cosmetics industry in 2010: ~4,000No. of SME manufacturing enterprises in 2010: 3,041

Source: COLIPA Activity Report 2010 – The European Cosmetics Market 2010

Forms of Intellectual Property Patents

Protection for things (products), processes, etc

Know how Confidential trade secret

Copyright Literary and artistic works

Database rights Protects collection of data

Design rights Applied to articles and protects what something looks like

Trade marks Protects goodwill of a business associated with products and/or services.

Cosmetic Patents in Context

Number of patent publications between 1990 and Jan 2010 for a range of different sectors

Source: Trends in patent activity in the cosmetics and perfume sectors. Information note 1. Union for Ethical BioTrade

Patenting Trends

Patent search in Thomson Innovation Classification codes relating to cosmetics and toiletries +

Search terms relating to extracts or ingredients +Search terms relating to plants and natural bio-activesPublished in the last 20 years

55,779 patent cases 21,254 INPADOC patent families

Patenting Trends

19951996

19971998

19992000

20012002

20032004

20052006

20072008

20092010

20112012

20132014

0

1,000

2,000

3,000

4,000

5,000

6,000

Patents published per year

Research Location

Top Assignees

Territories Protected

Patent Landscape

Claim Language – Novel Extracts 1. An extract of the seeds of Kniphofia uvaria seeds,

obtained by mechanical pressing of said seeds, or by bringing said seeds into contact with at least one cosmetically or dermatologically acceptable nonpolar solvent, and removing said solvent.

1. A composition comprising a) an extract of the seeds of the plant Buchholzia coriacea andb) auxiliaries and/or additives, which are common for cosmetic purposes.

Claim Language - Use

1. Use of an active substance or an active substance mixture, available from plants of the kind Lindera, for the improvement of the structure of keratin fibers, in particular the structure of human hair.

1. Extract of Bellis perennis L. for use as a depigmenting agent in a therapeutic method of depigmenting human skin.

1. Cosmetic use of kombucha to fight against skin ageing, in particular to prevent or inhibit the protein glycation, especially collagen, and to stimulate subcutaneous lipid synthesis.

Claim Language - Combinations 1. A composition comprising at least one Dead Sea extract and

at least one extract of the Himalayan Raspberry (Rubus ellipticus), an extract of the Goji Berry (Lycium Barbarum), and an extract of the Iceland moss (Cetraria islandica).

1. A composition obtainable by the method of extracting plant materials selected from the group consisting of Mangifera indica and/or Fumaria officinalis and/or Rumex japonicus.

1. A topical composition comprising (i) an extract of a first active which is Azadirachta indica; and (ii) an extract of a second active selected from Momordica charantia or

Sesamum indicum.

Claim Language – Production Methods 1. Process for preparation of a plant extract from plant

material, for the preparation of an infusion including: a stage of contact between the plant material and a solvent; at least one stage of extraction in liquid phase of the principal active

ingredients, performed with heating and under low pressure; a stage of drying of the plant material having undergone at least the

stage of extraction in the presence of the fraction obtained at the end of at least the extraction stage, in order to allow the fixing of the main active ingredients onto the plant material.

1. Material of plant origin which is a cell extract obtained by in vitro plant culture of Oxydendrum arboreum.

Claim Language – All of These

1. A method of treating a skin condition comprising topically applying to skin in need thereof a composition comprising jaboticaba fruit pulp and/or cashew fruit pulp, or extracts thereof, wherein the composition increases hyaluronic acid synthesis and inhibits COX-1 and TNF-a synthesis in the skin. wherein the water extract is prepared by a process consisting of:

(a) adding stem, root, leave, flower, and fruit of paper mulberry plant into water to obtain a mixture;(b) conducting an extraction by boiling the mixture of (a); and(c) filtering the resulting boiled mixture of (b) to obtain a filtrate, standing the filtrate, and concentrating the filtrate by distillation under reduced pressure

Value of IP in Natural Cosmetics Patents

Monopoly right ‘Negative’ right Value depends on breadth of monopoly Freedom to Operate more important?

Patent value versus other forms of IP? Know-how (production, formulation etc) Data and Regulatory approvals / Certification Trademark / Brand name

Patent Box

New tax regime in the UK from April 2013 Reduces corporation tax on qualifying profits to

10% (worldwide sales) Products developed in the UK, sold by a UK

company and covered by a granted UK or European patent

Will give rise to companies having “patent box IP” Patents with narrow scope Quick to grant Little or no monopoly rights value

Natural Ingredients in Cosmetics

Innovation in Natural Ingredients Any new natural / plant-based ingredient needs

to be able to distinguish itself in terms of: Scientific data

Supply chain

Cost

Marketing story

Conclusions

Innovation comes in many forms from many sources

Natural ingredients can form an important distinguishing feature, but face stiff competition

Rising number of patents filed in the sector Most patents in the sector filed by large

companies; FtoO may be more important Challenge is to link product efficacy to need

Questions?

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