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How a 50-Year-Old Coatings Patent Built an Unbreakable Moat
Episode 114 of Business Strategy Talks digs into a rarely discussed moat: a single patent filed in 1974 by a small German chemical company that still blocks every competitor today. Lucas and Luna walk through the chemistry, the legal strategy, and the economics of a coating used on 98 percent of industrial cutting tools worldwide. They explain how the company—now part of a larger conglomerate—has used that patent to sustain gross margins above 60 percent for decades. Along the way, they contrast this with a failed attempt to replicate the technology by a Japanese rival in 2009. The episode…
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