THE LONG ROAD FROM AN IDEA, TO PATENT, TO PRODUCT

Dr. Thomas Leiber, the founder and owner of IPGATE, is a visionary, inventor, and entrepreneur. Throughout his life, he has founded or co-founded ten companies in five countries and registered nearly 500 patents in his name. Currently, he guides his companies strategically while supporting innovative start-ups as an angel investor and mentor. As one of the leading thinkers about the future of Intellectual Property in a globalized world, Thomas shares his insights on the long road from an idea to a patent to a product.

August 20 2024

The Spirit of Curiosity and the Magic of Complexity Made Simple

Dr. Thomas Leiber embodies the spirit and curiosity of an inventor. Growing up with an inventor father, he naturally followed in his footsteps, absorbing the innovative atmosphere and business insights from a young age. Unlike his father, Thomas was fascinated by flying, three-dimensional and abstract non-linear problems, leading him to study aerospace engineering.

Always fascinated by invisible power and Nikola Tesla’s work, he extended his passion to brushless electric motors and systems with high complexity and numerous parameters that could not easily be understood. After his studies in aerospace, he delved into the highly complex world of electromagnetism and electrohydraulic brake systems with more than 40 functions, always seeking to understand the most relevant parameters and reduce complexity to a simple, innovative solution that could be explained in a few words.

As a teenager, Thomas explored the world, attending high school in the USA in a small town in Napa Valley, California, and learning French in Paris while working there. His first wife was from Argentina, fostering a global lifestyle and open-mindedness. “There is no good or bad in different countries. You just have to take the good things from each culture and combine them” he says.

His postdoctoral tenure in aerospace engineering at the Massachusetts Institute of Technology (MIT) was particularly inspiring. He interacted with open-minded professors and brilliant multicultural peers from around the world. Following this, he joined McKinsey & Company as a consultant, further broadening his horizons. This is where he learned to illustrate solutions to problems in a compelling short story with just a few slides.

Reading Patents: A Source of Inspiration

Thomas started reading patents when he founded his first company, LSP. He learned from his father’s technical ideas and the patent process, finding inspiration in the notion that there is always room for improvement. “Reading patents is very inspiring because you learn and think: ‘This could be done differently; this could be done better.’ Then curiosity kicks in.”

Thomas’s passion for improvement drives him daily. He loves transforming visionary thoughts into well-structured patents, often waking up with new ideas that expand in the process of writing the patent. He believes you don’t need to be an expert in a field to innovate; technological basics, curiosity and willingness to dig deep into a new field are enough. Despite not formally studying electrical engineering, Thomas, while building up his first company LSP in Munich, earned a Ph.D. in the field, proving that innovation thrives on curiosity and the willingness to explore beyond one’s comfort zone.

Playful Curiosity

Writing a Ph.D. outside his field of study was a unique challenge for Thomas. “I had to learn everything later,” he admits, ” it was in a playful way that I learned all about electric motors.” Although he has not studied electric motors or brake systems, many of his important patents are in these areas. “I just read a lot about them, and this is how ideas are born. It is playful curiosity that drives me,” he says.

When developing the first electric motor for CPM Compact Power Motors, Thomas recognized that outer rotor motors were typically used for blowers due to their high torque density. However, they did not qualify as power motors due to poor heat dissipation. Approaching the problem from a new perspective, he created a 4 kW power pack (electric motor with integrated electronics) in the size of a Coca-Cola can. CPM was co-founded  by Thomas in 2008 with venture capital backing, and Thomas served as the 2nd managing director and CTO for six years alongside his role at LSP where he was the only managing director.

In 2014, while developing an e-bike drivetrain, Thomas considered what features he, as a potential customer, would want. This led to the creation of an e-bike with constant pedaling frequency at independent vehicle speeds and a power booster for fast acceleration or climbing steep hills. This innovation was adopted by eVinci Mobility, whose PIKE product won the German Product of the Year award. Today, the drive train technology is used by many e-bike manufacturers.

Writing a Patent: An Art and Science

Thomas explains that writing a patent is akin to writing an essay. It involves combining elements of mathematics and physics with visions and pictures in one’s mind, expressed through words and simple drawings.

According to him, it requires an understanding of the tool’s brilliance. The process begins by reviewing five or more patents on a specific technical field to understand the patent structure and learn about the state of the art of a technology. This helps understand the technology or design, identify gaps, spark curiosity, and lead to new ideas.

Thomas asserts that it is not necessary to fully understand a product or know the solution before writing a patent. “It is in the process of writing and reflecting that you will have new ideas,” he says. This process can result in a comprehensive patent covering various solutions to solve a problem. For instance, he has written patents comprising 5-10 pages and patents of up to 100 pages.

A short patent is usually recommended because the idea is clear, focused, and unified. It can be summarized in one main claim. A long patent containing many ideas often cannot be summarized in one main claim and will have to be split into several patent applications later.

A patent with a long text has the advantage that future claims can be derived from the text of this patent, as the patent text is the only book from which to draw. However, the inventor risks well-described but improperly claimed innovations, giving others a chance to copy ideas without worrying about infringement.

Inventors and patent attorneys often focus on a single key invention, missing other potential innovations. This can occur if the inventor doesn’t clearly explain the patent’s full essence or the attorney fails to capture it in the main claim. Over time, the inventor might discover many overlooked inventions in the original patent. Therefore, it’s wise to have both the inventor and a new patent attorney periodically review the patent. A fresh perspective from the attorney, along with the inventor’s or a third person’s re-reading, can uncover additional patent claims and valuable opportunities that were initially missed.

The Strategic Game of Patent Value Generation

Besides the invention, Thomas also sees patents as a long-term strategic chess game. Thomas reflects that, as an innovator, “You must be aware that competitors will try to avoid violating your patent by finding alternative solutions using ingredients from your patent description or by omitting one feature of your main claim”.

“When drafting patent claims, focus on the main idea. Competitors will read your patent, just as you read theirs, and will design their products to avoid your main claims. Understanding this game in business, you might consider changing patent claims during the grant process, which can take three to ten years, or filing a divisional patent application once granted. This can trap competitors who didn’t foresee your strategic adaptations.” he says.

Innovation, Teamwork and Technology Showcase

Thomas emphasizes that writing a patent is one thing, but bringing it to life requires a team capable of building the product, writing the code, and handling other essential tasks. This need for diverse expertise led to the creation of LSP, another one of his companies, to bring his and his father’s patents to life.

He emphasizes that the team doesn’t necessarily need to be creative but must implement the ideas effectively and thoroughly. Team members often have complementary strengths in implementation and execution. It’s crucial to honor their contributions and ensure they feel part of the innovation and not just see them as simple implementors of the inventors’ ideas. Some companies include implementors as co-inventors on the patent, while others honor them differently, acknowledging their essential role in implementation.

Thomas acknowledges that inventors are often not great implementors; they are too visionary to manage details and lead people effectively. “There are others who do that better. I am more the type that inspires than the one that implements,” he humbly concludes.

The Drive to Finish What You Start

Thomas said he never started writing a patent without finishing it, though he sometimes gave up in the implementation phase. “Sometimes a patent is written in a few days; sometimes it takes up to two months as too many ideas pop up when writing it.”

Giving up in the patent phase makes no sense to him as his curiosity was already awakened. “An inventor finishes what he started,” he insists. However, he regrets that he has invented a lot but hasn’t implemented enough of his inventions. “I invent more than I can implement,” he admits. Thomas believes the strength of innovators lies in thinking broadly and then focusing on one path. At this stage, one must be able to let go and hand it over to others.

The Urgency of Securing Ideas

Thomas chuckles as he explains, “When you have an idea and talk to someone about it, you have to rush back and write the patent immediately because the one that registers the patent first has the right to the idea.” He emphasizes that if something develops during a conversation, you must act quickly to protect your idea. Sometimes, “this means pulling an all-nighter to get it done”.

He further elaborates that a non-disclosure agreement (NDA) with a potential customer primarily helps prevent an idea from being published and considered prior art in the patent grant process. However, it does not guarantee that your customer won’t copy your ideas, modify them, and file a patent in their own name.
According to Thomas, the charm of a patent lies in its 20-year lifespan. It is rarely too early to write a patent (consider Nikola Tesla’s invention of the cell phone in 1926), but realizing an innovation requires being at the right place at the right time. An inventor or visionary often faces the dilemma of being too early, as the market may not be ready. Ideally, a first patent should be written 5-10 years before widespread adoption, and the technology becomes a market standard.

Promoting Technology Globally is Key to Having an Impact – When the Inventor Becomes a Salesman

When thinking of an inventor, one might picture someone sitting in a library, lab, or workshop. While these places are where ideas are born, “if you want them to come alive, you have to bring them out into the world,” Thomas says.

However, he emphasizes the importance of ensuring that your technology is well protected with numerous patent families before presenting it. It’s also crucial to present your innovations at the right time to key decision-makers. “To achieve this, you sometimes have to bridge cultural gaps,” he notes. Thomas recalls that after successfully presenting the demo vehicle equipped with IBS to key companies in Germany, he embarked on a promotional tour across Japan, Korea and China.

Leveraging his father’s esteemed reputation, he secured meetings with otherwise hard-to-reach decision-makers in important Asian firms. Additionally, his father enlisted the help of a long-time Japanese friend to assist Thomas in bridging the cultural gap and fostering mutual understanding.

In addition, Thomas showcased the new technology at the E/E Congress in Ludwigsburg, an event his father had organized and moderated for many years, thereby increasing its visibility among key decision-makers in major organizations. He vividly recalls the CEO of a renowned German company sitting in the front row while he presented the IBS technology to the public in June 2010.

By the time of this presentation, the technology was well-positioned, with over two dozen patent families already securing its protection. One year later, in June and September 2011, two of the biggest Tier One manufacturers in the automobile industry signed comprehensive technology license agreements with ipgate AG, including more than 30 patent families.

The Value of Intellectual Property

Thomas observes that some people – also well-known technology visionaries – claim they don’t patent their ideas. Thomas insists that intellectual property only has value if protected and the patent is well drafted with a patent attorney.

“If you don’t protect it, no one will honor your innovative contributions later,” he says. He likens ideas to cars, noting that people like to steal things. “Ideas are like cars; you want to lock them, or someone will take it and drive away.”

Thomas believes that if you have a great idea, it is a property that can bring significant economic advancement. As an inventor, he asserts, you have the right to be part of that. However, it is an inventor’s duty not to use patents to block innovation and to license non-exclusively and on reasonable and fair financial terms.

In a globalized world, this is even more important because inventions are copied and produced more cheaply abroad. We have to protect Intellectual Property to think forward.

Challenges in Large Organizations

As an entrepreneur, Thomas understands how creativity can be lost in the production process, especially when finance departments of large corporations focus on cost optimization. He notes that many big companies face this issue: “Once they have a successful product, they see no reason to innovate further.”

This creates a vacuum as they fail to anticipate what comes next. Larger organizations, split into specialized divisions, often lose sight of the product as a whole and become rigid in their thinking.

In such environments, finance experts and lawyers dominate, often saying:

  • “Why change if we’re making money? It’s a market success.”
  • “Let’s avoid investing in new technologies that might make our current products obsolete.”
  • “This project doesn’t fit our corporate strategy.”
  • “We have invested billions of dollars in CAPEX and must continue to produce until we have depreciated our investment.

However, every product has a life cycle. As the success phase ends and the downward trend begins, it is too late to start innovating. Many companies have severed ties with the original inventor, mistakenly believing they no longer need them.

Companies often regret missing opportunities to adapt to evolving markets. Thomas notes that many European organizations are stuck in an optimization phase of existing products in production. To counteract this, large companies create separate innovation hubs directly linked to the management board. These hubs should promote partnership-based licensing relationships with innovators, even if they are independent entities such as start-ups and medium-sized companies with different corporate cultures.

The Mindset of an Inventor, Constant Learner and Networker

Thomas remains a passionate inventor, always seeking new solutions to unsolved problems. As an entrepreneur, he also builds his own companies and win-win cooperations with large corporations around these innovations. He concludes: “Everything can be improved. This is my thinking. There’s always a way to make things better or even completely new.”