Synthetic Diamonds and the Power of Patents

De Beers may have convinced the world that “diamonds are forever,” but certainly, century-old business strategies are not – even in the diamond industry itself. Patents for synthetic diamonds have transformed an industry that once seemed untouchable, highlighting not only how technology can disrupt even the most traditional markets but also the importance of securing intellectual property to stay competitive in any field.

The evolving patent landscape has slowly reshaped the entire diamond industry. When foundational high-pressure high-temperature (HPHT) patents from the 1960s expired, manufacturers around the world seized the opportunity to produce synthetic diamonds without licensing fees, driving prices down dramatically. The story doesn’t end there, however, because innovation hasn’t stopped. Consider US Patent 9,023,307 assigned to Carnegie Institution of Washington, which covers a revolutionary chemical vapor deposition (CVD) system that grows diamonds up to 200 micrometers per hour. Finally, proof that institutions in Washington can move faster than geological forces!

Another exciting patent assigned to Impossible Diamond Inc., US 11,371,162, describes a technology that captures carbon directly from the atmosphere to grow diamonds, essentially turning pollution into precious gems. Turning a greenhouse gas into a diamond means investing in the future in more ways than one. In an industry that is already seeing many consumers prefer lab-grown diamonds as a result of ethical considerations, a diamond grown from carbon dioxide is a brilliant idea that traditional mining operations simply cannot compete with.

Element Six (a De Beers group) maintains an impressive patent portfolio for synthetic diamonds as well, but this alone doesn’t buy them market control. The fact that entities like Carnegie Institution and Impossible Diamond Inc. can effectively generate their own supply of diamonds is profoundly disruptive. One cannot help but infer that monopolistic entrenchment simply does not last. The right IP strategy allows a business to disrupt any market, no matter how consolidated. After all, patents might not be forever, but they enable the growth of new businesses that can last well beyond the pendency of their foundational IP.