Intangible Asset Derivative Marketplace for IP Trading
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Solution Overview
Problem
The trading of intangible assets, such as intellectual property, is inefficient and lacks transparency, leading to poor price discovery and high transaction costs, which discourages companies from actively engaging in IP exchanges.
Innovation Solution
A marketplace for trading intangible assets and derivative financial contracts based on these assets, using IP metrics to evaluate and list companies, facilitating electronic and floor trading, and providing a platform for efficient and transparent transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If traditional private transactions are used for IP trading, then transaction flexibility is maintained, but transaction costs are high and transparency is poor
Solution Approach 1:
The patent introduces a centralized IP exchange platform as an intermediary between buyers and sellers. This platform provides standardized listing requirements, centralized price discovery mechanisms, and transparent trading records, thereby improving information transparency while managing transaction complexity through structured processes.
Solution Approach 2:
The patent establishes specific listing parameters and thresholds for IP assets (such as minimum valuation criteria, ownership verification requirements, and licensing status standards). By defining these parameters, the system transforms opaque private transactions into transparent standardized trades with measurable criteria.
2Measurement precision
If centralized exchange is implemented for IP trading, then price discovery and transparency improve, but transaction complexity increases
Solution Approach 1:
The patent segments the IP trading process into distinct phases: listing application, valuation assessment, approval, and trading. Each phase has specific requirements and procedures, which breaks down the complex centralized exchange process into manageable steps, reducing perceived complexity while maintaining price discovery accuracy.
Solution Approach 2:
The patent creates a universal listing framework that can accommodate different types of IP assets (patents, trademarks, copyrights, trade secrets) through standardized criteria. This multi-functional approach allows the exchange to handle diverse assets with a single set of procedures, improving price discovery without proportionally increasing complexity.
3Reliability
If standardized listing requirements are imposed, then market reliability improves, but ease of operation decreases
Solution Approach 1:
The patent requires sellers to complete preliminary actions before listing, including IP valuation assessments, ownership verification, and licensing status confirmation. By completing these actions in advance, the system ensures market reliability is established before trading begins, while the structured nature of these preliminary steps makes the overall process more manageable.
Solution Approach 2:
The patent implements a feedback mechanism where the exchange reviews and approves or rejects listing applications based on predefined criteria. This feedback loop ensures that only assets meeting reliability standards are listed, while providing clear guidance to sellers about what is required, thereby maintaining ease of operation through predictable processes.
Data Source
AI summary
A marketplace for trading derivative financial contracts includes a forum that publishes a financial contract and allows the financial contract to be traded by one or more market participants. The financial contracts are based on one or more underlying intangible assets of one or more entities. The price of the contract is derived from a measure of value of the one or more underlying assets of the particular financial contract. The forum may include an exchange for trading financial contracts and may also host trading of over-the-counter financial contracts.