A question about the recent GEVO patent lawsuit victory..
So, from what little there was to read in the press release about this, GEVO has won the the rights to the ethanol to isobutanol conversion process over BP & Dupont? I'm not sure I get how much this means since if on the surface, you see a patent victory over to giants like that you would think that is massive. Am I missing something here, a loophole or what the patent victory really legally means that makes this not as great as it sounds? Or what does that all really mean as far as what advantage GEVO ends up having over the those behemoths? No one even mentions the patent victory much here...
GEVO - Patent win: Maxx Chatsko points out (Motly Fool)
This is tremendous news for Gevo in terms of further sticking it to its closest competitor, Butamax, a joint venture between DuPont (NYSE: DD ) and BP (NYSE: BP ) . Both have enjoyed big wins in court in 2013, but Gevo was the obvious winner. The U.S. Patent and Trademark Office also handed Gevo intellectual property surrounding the commercial-scale production of isobutanol, meaning Butamax will likely have to license at least that sliver of technology from Gevo. Today's news further cements the lead for Gevo, which was already two to three years ahead of its well-funded foe.
FULL STEAM AHEAD-
Additionally, this is actually the first time that Gevo has run its GIFT separation system at full-scale (due to alleged infringement by Butamax). Separation is a huge part of any industrial biotech platform. The more efficiently a company can separate its desired product from byproducts the more economical its total process
Ramping- Gevo will continue to ramp up its production throughout 2013 and into 2014. That means that the company will gradually increase the liquid volumes of its bioreactors until Luverne produces nameplate capacity, or 18 million gallons per year.
Gevo was rewarded intellectual property rights on their GIFT system. What that means definitely is that BP and DuPont thru Butamax will have to lease a portion of that technology from GEVO. No getting around it. Its a sealed deal. We do not know the monetary value of it at this time. Gevo is also getting ready to stick it to BP and DuPont again in August on another claim. The patent thing will go on for years. Theres soo much money to be made from Isobutanol. Its no different than the Patent suits from Apple and Samsung. Whether one day there will be a large payout like Monsanto won over DuPont doesn't really matter. Theres more money than anyone knows what to do with. The true potential is only beginning to be realized. The sure thing is that it is revolutional.
To put that into perspective as far as Profit my friends. Plastics can be made by Isobutanol cheaper than they can by Fossil Fuel Oils. About 20% cheaper. Thats what all the hub bub is abot bub. $$$$$$$$$$$$$