Aspen Aerogels CFO John Fairbanks
September 3, 2019
Aspen Aerogels looks to grow after series of court wins
With long-running patent litigation involving two infringing Chinese companies, Northborough aerogel manufacturer Aspen Aerogels can now focus on growing the company. Chief Financial Officer John Fairbanks spoke about the litigation and the company’s future with the case behind them.
How far back does this litigation go?
We initiated the litigation that was subject to the recent appeal three years ago.
How long was the company monitoring this before it got to the courts?
We were monitoring the infringers’ activity for several years. Our intent is to keep them out of the markets where we have patents. That is actually in the U.S., Europe and frankly, even in China.
What does that mean?
The ITC stopped all products from coming into the U.S. via an exclusion order. Customs officials at the borders will divert and return any aerogel shipments coming from outside the U.S.
Was this previously eating into the company’s revenues?
We’ve always said this was more preemptive. We’re aware that with the internet, anyone an market anywhere in the world. We sought to ensure that the Chinese companies could not unfairly compete with us here in the U.S.
This hasn’t really eaten into our business here in the U.S., but the exclusion order keeps them out permanently.
How often do patent cases come up this niche market of aerogel products?
It’s been relatively unusual. It's patented technology and we’re the worldwide leader in aerogel technology and our success has created an environment where people are trying to copy us. The purpose of investing in patents is just this - to ensure copycats are not successful long term.
Our strategy has been to develop technology and put our patents and intellectual property in place to protect technology. If we see anybody trying to infringe our technology, we take action against them.
Cracking down on the Chinese theft of American trade secrets has been a priority of this administration. Is that something Aspen applauds?
For us, this strategy is irrespective of what the administration does. We’re a technology company. Protecting that technology and innovation and forcing our patents against anyone who unfairly copies or infringes that technology is really just part and parcel to what we do.
We manufacture in the U.S. and export 65% of what we produce. We buy the bulk of our materials from U.S. companies. From that perspective, we’re sort of the model U.S. company.
With this behind you, what is the company looking forward to?
We’re growing this year. Our projections for 2019 are that we’ll grow more than 20% and see a significant improvement in profitability. We’re adding people both here in Massachusetts and Rhode Island. We really feel like we’re on the upswing.
How many employees will you be adding?
We’re looking to add between 10 to 15 employees, predominantly in Rhode Island.
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