California Legal Market

Nanotechnology: The Next Big Thing is Really Very Small

Law practice ebbs and flows with the economy, politics, and technological innovations, and a wise lawyer keeps an eye out for the next big thing. For example, when the economy is down as it is now, there is an increase in new bankruptcy filings and reorganizations. But, when times are good, that work slows dramatically. Similarly, antitrust legal work varies in accordance with each administration’s interests in enforcing those laws. Sometimes lawyers are fooled, however. A few years ago, law firms prepared for the onslaught of Y2K work, but it failed to materialize.

In contrast, the dot.com boom was huge for the legal profession. But, when the bubble burst, it left behind layoffs, law firm dissolutions, and huge amounts of empty office space. Now, lawyers are looking for the next big thing, and this one has the potential to be just as big or bigger than dot.com: nanotechnology. In fact, last year President George W. Bush designated April 29 as National Nanotechnology Day.

Nanotechnology is the creation and utilization of materials, devices, and systems at the nanometer scale. A nanometer is one-billionth of a meter (an average human hair is 10,000 nanometers wide). This science is the union of chemistry, biology, physics, computer science, and engineering. The components are so small, that programmable computers could be made the size of a biological cell. Applications are incredibly diverse, including advances in healthcare, weaponry, manufacturing, and electronics. Some applications already are on the market in the form of nanomaterials in steel and plastics. These new materials are more lightweight and durable and are being used in products such as cosmetics, paints, automobile parts, and shatterproof beer bottles.

The commercial market for nanotechnology is expected to be huge, with something for just about everybody. For early entrants into this marketplace, the financial potential is immense. The National Science Foundation predicts that the market for nanotechnology products and services will be as much as $1 trillion by 2015 and venture capitalists are carefully looking at this as a new arena for their investments. In 2000, the federal government established the National Nanotechnology Initiative, with $270 million in funding for research. This more than doubled to $679 million for 2003, with a proposed budget of $847 million in 2004. A good chunk of this federal funding is going to the Defense Department for research in equipping the military of the future.

California Governor Gray Davis has established four University of California Institutes for Science and Innovation. UCLA and UC Santa Barbara have joined in the California NanoSystems Institute (CNSI) to facilitate a multidisciplinary approach to develop nanotechnology through the collaboration of California’s university, industry and national laboratory scientists. The Institute believes that California is well-positioned to lead in the development of nanotechnology because of its people, research and academic institutions, and experience in technology going back as far as the development of the aerospace industry. CNSI has attracted nearly 30 corporate sponsors thus far and received $100 million in state support to help propel the state’s economy. When UCLA broke ground in February 2003 to house the Institute, Governor Davis remarked, “Nanotech may be one of the world’s smallest sciences, but it has the greatest potential.”

The Southern California region from Santa Barbara south to San Diego has been dubbed “Nanotech Coast” because of its concentration of universities, research institutions, and participating industry from established companies to entrepreneurial start-ups. Other locales that starred in the dot.com boom, such as Silicon Valley, Boston, Northern Virginia, Seattle, and Texas, are expected to be big players in the commercialization of nanotechnology, because the entrepreneurial infrastructures already are in place. Universities such as Stanford, Cornell, MIT, University of Chicago, and Houston’s Rice, and established companies such as Hewlett Packard, IBM, General Motors, General Electric, Siemens, Intel, Lucent Technologies, Agilent Technologies, DuPont, Motorola, Mitsubishi, Rockwell, Hitachi, and Dow already have researchers at work on practical applications. Furthermore, nanotechnology research is occurring in Japan, the European Union, Russia, Korea, Canada, Australia, India, and China.

And lawyers are not far behind. Law firms, including Atlanta’s Arnall Gregory, Chicago’s Foley & Lardner, Austin’s Gracewell & Patterson, Minneapolis’ Oppenheimer Wolff & Donnelly, San Francisco’s Pillsbury Winthrop, and Dallas’ Winstead Sechrest & Minick, have created multidisciplinary practice groups to service this new area. They have pulled together teams of attorneys with expertise in corporate and securities, finance, joint venture, litigation, patent, licensing, trademark and copyright law, including lawyers with advanced degrees in various scientific disciplines.

It is expected that the legal requirements of nanotechnology firms will parallel those of other emerging markets in patent prosecution, licensing, trademark, financing, entity formation, and commercialization issues. Current and prospective nanotechnology clients include universities, inventors, scientists, entrepreneurs, venture capitalists, and start-up and established companies.

Nanotechnology will pose some interesting new legal questions, as well. Because of its pervasive potential, it will involve a wide range of laws and regulations from international trade, treaties governing chemical and biological weapons, health, safety and the environment. It will pose questions such as whether some commercial applications of nanotechnology, such as respirocytes consisting of a tiny pressurized tank and pumps carrying oxygen and carbon dioxide into the blood stream to augment or replace red blood cells, should be classified as a medical device, a drug, or something else completely. Regulators will need to consider how to test, monitor, and approve such technology.

Existing laws may not cover all future applications of nanotechnology. Such open questions regarding the laws pertinent to nanotechnology leave plenty of room for lawyers to operate and exert their influence.

The US Senate already is at work creating the legal framework for nanotechnology. Senator Ron Wyden (D-OR), one of the sponsors of the Nanotechnology Research and Development Act (2002), said “the nanotechnology revolution has the potential to change America on a scale equal to, if not greater than, the computer revolution.”

It looks like the next big thing really is incredibly small—but you don’t want to miss it.

California Legal Market Nanotechnology: The Next Big Thing is Really Very Small Law practice ebbs and flows with the economy, politics, and technological innovations, and a wise lawyer keeps an eye out for the next big thing. For example, when the economy is down as it is now, there is an increase in new bankruptcy filings and reorganizations. But, when times are good, that work slows dramatically. Similarly, antitrust legal work varies in accordance with each administration’s interests in enforcing those laws. Sometimes lawyers are fooled, however. A few years ago, law firms prepared for the onslaught of Y2K work, but it failed to materialize. In contrast, the dot.com boom was huge for the legal profession. But, when the bubble burst, it left behind layoffs, law firm dissolutions, and huge amounts of empty office space. Now, lawyers are looking for the next big thing, and this one has the potential to be just as big or bigger than dot.com: nanotechnology. In fact, last year President George W. Bush designated April 29 as National Nanotechnology Day. Nanotechnology is the creation and utilization of materials, devices, and systems at the nanometer scale. A nanometer is one-billionth of a meter (an average human hair is 10,000 nanometers wide). This science is the union of chemistry, biology, physics, computer science, and engineering. The components are so small, that programmable computers could be made the size of a biological cell. Applications are incredibly diverse, including advances in healthcare, weaponry, manufacturing, and electronics. Some applications already are on the market in the form of nanomaterials in steel and plastics. These new materials are more lightweight and durable and are being used in products such as cosmetics, paints, automobile parts, and shatterproof beer bottles. The commercial market for nanotechnology is expected to be huge, with something for just about everybody. For early entrants into this marketplace, the financial potential is immense. The National Science Foundation predicts that the market for nanotechnology products and services will be as much as $1 trillion by 2015 and venture capitalists are carefully looking at this as a new arena for their investments. In 2000, the federal government established the National Nanotechnology Initiative, with $270 million in funding for research. This more than doubled to $679 million for 2003, with a proposed budget of $847 million in 2004. A good chunk of this federal funding is going to the Defense Department for research in equipping the military of the future. California Governor Gray Davis has established four University of California Institutes for Science and Innovation. UCLA and UC Santa Barbara have joined in the California NanoSystems Institute (CNSI) to facilitate a multidisciplinary approach to develop nanotechnology through the collaboration of California’s university, industry and national laboratory scientists. The Institute believes that California is well-positioned to lead in the development of nanotechnology because of its people, research and academic institutions, and experience in technology going back as far as the development of the aerospace industry. CNSI has attracted nearly 30 corporate sponsors thus far and received $100 million in state support to help propel the state’s economy. When UCLA broke ground in February 2003 to house the Institute, Governor Davis remarked, “Nanotech may be one of the world’s smallest sciences, but it has the greatest potential.” The Southern California region from Santa Barbara south to San Diego has been dubbed “Nanotech Coast” because of its concentration of universities, research institutions, and participating industry from established companies to entrepreneurial start-ups. Other locales that starred in the dot.com boom, such as Silicon Valley, Boston, Northern Virginia, Seattle, and Texas, are expected to be big players in the commercialization of nanotechnology, because the entrepreneurial infrastructures already are in place. Universities such as Stanford, Cornell, MIT, University of Chicago, and Houston’s Rice, and established companies such as Hewlett Packard, IBM, General Motors, General Electric, Siemens, Intel, Lucent Technologies, Agilent Technologies, DuPont, Motorola, Mitsubishi, Rockwell, Hitachi, and Dow already have researchers at work on practical applications. Furthermore, nanotechnology research is occurring in Japan, the European Union, Russia, Korea, Canada, Australia, India, and China. And lawyers are not far behind. Law firms, including Atlanta’s Arnall Gregory, Chicago’s Foley & Lardner, Austin’s Gracewell & Patterson, Minneapolis’ Oppenheimer Wolff & Donnelly, San Francisco’s Pillsbury Winthrop, and Dallas’ Winstead Sechrest & Minick, have created multidisciplinary practice groups to service this new area. They have pulled together teams of attorneys with expertise in corporate and securities, finance, joint venture, litigation, patent, licensing, trademark and copyright law, including lawyers with advanced degrees in various scientific disciplines. It is expected that the legal requirements of nanotechnology firms will parallel those of other emerging markets in patent prosecution, licensing, trademark, financing, entity formation, and commercialization issues. Current and prospective nanotechnology clients include universities, inventors, scientists, entrepreneurs, venture capitalists, and start-up and established companies. Nanotechnology will pose some interesting new legal questions, as well. Because of its pervasive potential, it will involve a wide range of laws and regulations from international trade, treaties governing chemical and biological weapons, health, safety and the environment. It will pose questions such as whether some commercial applications of nanotechnology, such as respirocytes consisting of a tiny pressurized tank and pumps carrying oxygen and carbon dioxide into the blood stream to augment or replace red blood cells, should be classified as a medical device, a drug, or something else completely. Regulators will need to consider how to test, monitor, and approve such technology. Existing laws may not cover all future applications of nanotechnology. Such open questions regarding the laws pertinent to nanotechnology leave plenty of room for lawyers to operate and exert their influence. The US Senate already is at work creating the legal framework for nanotechnology. Senator Ron Wyden (D-OR), one of the sponsors of the Nanotechnology Research and Development Act (2002), said “the nanotechnology revolution has the potential to change America on a scale equal to, if not greater than, the computer revolution.” It looks like the next big thing really is incredibly small—but you don’t want to miss it.	Hot Tips The Search Planning Your Search Assessing Your Marketability Resumes and Cover Letters Interviewing Strategies Special Circumstances Following Through Compensation Making the Transition Career Development Getting Ahead In a Down Market Making Partner Law Firm Economics California Legal Market View our most recent Hot Tip - So Long, Farewell, to You and You and You, posted 1/3/12 The California Bar Exam Listen to Your Recruiter Check out our new book, "The Right Moves: Job Search and Career Development Strategies for Lawyers"

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