IP Security

What is an IP Security?

An IP security can represent a fractional ownership of an IP, or fractional ownership of current or projected revenue from IP, or any combination of the two.

Past securitizations have all been debt instruments, but IP securities are assets that have intrinsic value.

As such, this new asset class is covered by existing Securities Law.

IP Securities can be independently valued and traded as assets in their own right.

They have public transparency of content and pricing, as well as enjoy liquidity on the largest securities market in the world.

They provide access, through NASDAQ, for the general public to invest in this new asset class and for issuers to establish a market value for assets that may have been undervalued on balance sheets for years.

Scale and importance of IP

Intellectual property, often referred to as IP, is intangible property that stems from creativity, protected by patents, trademarks and copyrights.

In 2021, IP intensive industries contributed 35% of US GDP, amounting to more than USD$5tr. More than 40 million jobs are supported by IP sensitive industries, more than a quarter of the US workforce.

Income generating IP is already estimated to account for more than 1/3 of the total market value of all publicly listed companies in the US and is continuing to grow rapidly.

Even so, this estimate ignores all value of intellectual property that does not generate verifiable income, such as inactive patents, copyrights and trademarks.

There are two main objectives when securitizing IP

Firstly, Monetizing the value of existing Intellectual Property. For example, a musician’s songs, a writer’s books, or a technology company’s patents.

And secondly, Financing the creation of new IP. For example, funding R&D for a new drug, or financing the production of a new movie.

Interested in discussing opportunities?

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