The quantum hype and the role of IP

For more than 20 years, FB Rice has supported organisations across the international quantum technology ecosystem in protecting innovation, developing IP strategies and creating pathways to commercialisation. The ‘Securing the quantum future with IP’ series will explore the considerations shaping the future of quantum technologies and the role IP plays in securing that future. This is the first article in the series.

What is quantum technology?

The term “quantum” generally relates to quantum mechanics – a branch of physics that studies the behaviour of objects at a very small scale, such as molecules, atoms and their constituents. As it turns out, the “quantum” world that exists at a very small scale behaves completely differently to objects on the scale of everyday life. For example, most people think of the world as obeying classical (i.e., Newtonian) mechanics - where you throw a ball at a wall and it bounces. However, at the quantum scale, if you throw a ball at a wall, there is a possibility that the ball ends up on the other side of the wall – a property referred to as quantum tunnelling.

In essence, “quantum” is a fundamentally different way of thinking and understanding our world, and provides scientific principles that can often seem counterintuitive. However, such principles can be exploited to give rise to technology that otherwise, would not be possible.

“Quantum technologies” can be regarded as technology that uses these principles of quantum mechanics to solve a real-world problem.

Despite the recent hype, “quantum technologies” have existed for many years. Some examples include:

• lasers
• semiconductors
• light emitting diodes (LEDs)
• some microscopes, such as scanning tunnelling microscopes (STMs)

The recent hype has been directed towards “emerging quantum technologies”, which continue to attract much attention from the scientific community, government and the public. This is because these emerging technologies have the ability to solve complex problems and provide incredible sensitivity beyond current technical capabilities.

Most people associate “quantum” with quantum computing, which seeks to harness principles of quantum mechanics, such as superposition and entanglement, to perform calculations far beyond the capabilities of classical computers. For example, quantum computers are expected to solve complex optimisation problems in areas such as supply chains and logistics networks, as well as simulate molecular interactions for drug discovery and materials design.

However, the recent quantum movement has not been solely dominated by quantum computing. “Emerging quantum technologies” also include:

• quantum sensing
• quantum machine learning
• quantum security

All have attracted similar interest.

Why is quantum technology receiving government investment?

Australia has long been a world leader of quantum research and the government has made strides to maintain and foster the quantum ecosystem in Australia. However, bringing quantum technologies to market requires a broad ecosystem of researchers, universities, investors, start-ups, major industry partners and government support. Australia has spent decades building this ecosystem and is now seeking to accelerate commercial adoption through targeted investment and policy initiatives.

Recognising the strategic and economic potential of the sector, the Australian Government released the National Quantum Strategy in 2023 to help strengthen Australia’s position as a global leader. The Australian Government also sees the potential for quantum technologies in defence and has featured strongly in the AUKUS Pillar II agreement.

Examples of Australian Government investment include:

• a $2.7 million investment towards trialling of four Australian‑developed quantum technology clocks in the United States under the AUKUS Pillar II agreement
• investing up to $3.8 billion over the next decade in the Advanced Strategic Capabilities Accelerator (ASCA) to fast-track disruptive technologies from the research and innovation stage into deployable military capabilities
• offering a $3 million ASCA contract to a University of Sydney spin-out delivering diamond-based magnetometers for GPS-denied navigation in collaboration with the Australian Defence Force (ADF)

Governments around the world are also investing heavily in quantum technologies because of their potential to deliver significant advantages in areas such as national security, communications, navigation, healthcare and advanced computing. This demonstrates a global investment into quantum and opportunities for Australia to continue building both research and commercial partnerships.

How IP supports quantum growth

IP is an integral part of commercialising technology and important for transitioning quantum research into practical, commercial technology. The increasing interest and investment into quantum technologies, as well as the potential applications they offer, continues to increase their commercial value. IP remains critical to ensuring protection of commercial interests.

Importantly, IP, including patents, offer more than protection against infringement. In the quantum sector, IP can be a key driver of commercial success. For example, patents can:

• increase the value of a business;
• facilitate strategic partnerships;
• strengthen a position in merger, investment and acquisition negotiations; and
• demonstrate the uniqueness and commercial viability of a technology.

In particular, investment in IP demonstrates a company’s commitment to, and confidence in their technology. It can also provide independent validation of the technology, which can be important when attracting investment. This is especially relevant in the quantum sector, where we are seeing an increasing number of start-ups and university spin-outs. For these companies, IP is often a critical intangible asset that underpins their growth. Moreover, patent protection demonstrates that quantum technology is not merely a theoretical concept, and instead has practical, real-world applications.

As Australia's quantum ecosystem continues to mature, organisations will increasingly need to consider how they identify, protect and manage valuable IP. Those that develop strong IP strategies to complement innovation will be better positioned to attract investment, build partnerships and realise the commercial potential of their technology. IP is essential for continued growth of the quantum technology sector, as well as transitioning technology beyond hype and securing a quantum future.