Hawai'i static in generating patents

By Sean Hao
Advertiser Staff Writer

Fuel cell technology is intensely researched in Hawai'i, so a 2003 patent on membranes was rewarding to, from left, Matt Kurano, research technician; Dustin Shindo, CEO; and Kaleo Taft, chief technology officer of Hoku Scientific. Richard Ambo • The Honolulu Advertiser

Hawai'i companies received 26 patents in 2003, which was level with 2002 and in line with the recent trend of recent years, according to the U.S. Patent and Trademark Office. As it stands, Hawai'i ranks 49th among the 50 states in patents issued per one million people, according to a report late last year by the Corporation for Enterprise Development.

The relatively static growth comes despite Hawai'i 's generous technology investment and research tax credits, among the most liberal in the nation, in the form of Act 221.

Act 221 supporters say it will be several years before the program created in 2001 results in increased patents. Part of the reason is the patent process can take as long as two years or more to complete.

"In the long-run, there should be some correlation" between Act 221 and patent generation, said Ann Chung, executive director of the Hawai'i Technology Trade Association. said. "But at this point it's relatively early."

"You'll see. If we can keep (Act 221) and keep it going for much longer, we'll see growth in that area," she said.

Tech tax credits have cost the state an estimated $48.4 million in fiscal 2003 and is forecast to grow to $76.7 million in fiscal 2005, according to the state. Among the beneficiaries of Act 221 has been fuel cell component maker Hoku Scientific in Kalihi. Last year the company received its first patent, which involved technology to help fuel cell membranes perform better and last longer.

The patent was the first granted to the company. "That's significant," said Dustin Shindo, co-founder and president for Hoku. "The second thing is the broad scope the patent gives us in one of our technologies."

Created to protect the right of a company to profit from its ideas, patents increasingly are considered critical in defending a company against competitors, staking out market share and generating royalties.

University of Hawai'i research resulted in seven patents last year, down from 10 patents in 2002. Still, royalties or income from patent licenses increased 30 percent to $530,000 in fiscal 2003 ended June 30.

"Cutting-edge research doesn't necessarily translate into commercial success," said Dick Cox, assistant director of the UH Office of Technology Transfer. "(But) we look at patents as economic tools so they are an important component."

Among the patents issued were a technique developed by Maui Pineapple to increase flavor and shelf life of fresh cut pineapple through various treatment and storage techniques. In addition, a Honolulu organization called Love Lives patented an ethanol gargling technique meant to reduce the duration of cold symptoms.

Among UH's new patents is a process that uses silkworms to create a vaccine against malaria, said George Hui, a research professor at UH's department of tropical medicine. UH is working with the Chinese University of Hong Kong on the project.

A marketable product isn't likely for at least several more years, but its potential could be huge.

Malaria "is a major disease and it's affecting quite a number of people in third-world countries," said Hui. "The future of the economy is in Third World countries, so we have to solve the diseases there."

Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.