Fractional IP Ownership via Trust Intermediary

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Intellectual property assets, including rights of publicity, patents, trade secrets, and copyrights, have been undervalued and difficult to accurately value, leading to confusion in their financial valuation and underutilization in investment opportunities.

Innovation Solution

Implementing a fractional ownership model for intellectual property assets, where investors contribute to a trust to gain partial ownership, allowing for the monetization of these assets and creation of financial markets, leveraging existing fan-bases for revenue generation and benefits.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of manufacture

If intellectual property assets are classified as intangibles on corporate balance sheets, then they can be easily recorded and managed, but their value is significantly undervalued and difficult to accurately assess

Engineering Contradiction:

Improveease of recording and managing IP assetsVSAvoidaccuracy of IP asset valuation

Core Design Contradiction:

Ease of manufactureVSMeasurement precision

Solution Approach 1:

The patent introduces a trust as an intermediary entity that holds intellectual property assets, enabling accurate valuation through professional appraisal while maintaining ease of management through centralized oversight. The trust structure acts as a mediator between the IP owner and investors, providing both valuation accuracy and management simplicity simultaneously.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Adaptability or versatility

If fractional ownership shares are created for IP assets, then investment opportunities and revenue sharing are enabled, but the complexity of ownership structure and management increases

Engineering Contradiction:

Improveinvestment opportunity creationVSAvoidownership structure complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent divides intellectual property ownership into fractional shares that can be independently owned and traded. This segmentation enables multiple investors to participate in IP assets without requiring complex partnership structures, as each shareholder owns a distinct, transferable portion of the trust's IP portfolio.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The trust structure serves multiple functions simultaneously: it holds and manages IP assets, provides valuation services, facilitates fractional ownership creation, enables dividend distribution, and allows share trading. This multi-functionality reduces overall system complexity by consolidating what would otherwise require multiple separate mechanisms.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Productivity

If IP assets are securitized and financial markets are created, then liquidity and investment access are improved, but the difficulty of valuation and market establishment increases

Engineering Contradiction:

Improveliquidity and investment accessVSAvoidvaluation and market establishment difficulty

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The trust acts as an intermediary that professionalizes IP valuation and market-making functions. By concentrating these complex tasks within the trust structure, individual shareholders benefit from liquidity and investment access without personally承担ing the complexity of valuation methodologies or market establishment.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS7720740B2System of fractional ownership of intellectual property

Publication Date: 2010.05.18 JONES MARION DARNELL

AI summary

A system of fractional ownership of intellectual property, and a method for providing same. The system can comprise a pooling account, a first entity, and at least one second entity. The first entity can have an interest in an intellectual property, and can transfer at least a portion of such interest into the pooling account. The second entity can contribute consideration into the pooling account. In return for the consideration from the second entity, a commensurate fractional interest in the intellectual property can be associated with the second entity.