Securitized IP Tokenization Marketplace
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
There is a lack of an efficient system for trading and valuing securitized intellectual property (IP) assets, including the process of tokenization and clearance and settlement of trades within a securitized IP marketplace, which hinders liquidity and efficiency in financial markets.
Innovation Solution
A marketplace system utilizing blockchain and smart contracts for securitized IP, allowing tokenization of shares, clearance, and settlement of trades, with a valuation mechanism using artificial intelligence models to determine the nominal fair value of IP assets, enabling trading and liquidity provision with reduced administrative costs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If a marketplace system for securitized IP assets is implemented, then trading efficiency and liquidity are improved, but system complexity and infrastructure requirements increase
Solution Approach 1:
The system segments IP assets into tradable tokens representing fractional ownership, enabling independent trading of asset portions. This segmentation allows the marketplace to handle multiple discrete trading units from a single IP asset, improving trading efficiency and liquidity without requiring complete asset transfers.
Solution Approach 2:
The patent introduces a clearinghouse as an intermediary entity that facilitates trades between buyers and sellers, manages settlement, and maintains the share ledger. This intermediary structure simplifies the trading process by centralizing critical functions, reducing counterparty risk, and enabling efficient matching of orders without direct peer-to-peer complexity.
2Adaptability or versatility
If tokenization of shares is implemented, then liquidity and portability of IP assets are improved, but cryptographic security requirements and processing overhead increase
Solution Approach 1:
The system implements self-service cryptographic verification where the clearinghouse automatically verifies cryptographic signatures on trading requests and manages key pairs for token holders. This automated self-verification process eliminates the need for manual security protocols while maintaining cryptographic security, enabling liquid trading without proportionally increasing processing overhead.
Solution Approach 2:
The patent creates digital tokens as cryptographic copies representing ownership of IP assets. These tokens can be freely transferred and traded without moving the underlying asset, providing liquidity through copy-based transactions. The cryptographic copying mechanism enables efficient replication and transfer of ownership rights with minimal processing requirements.
3Measurement precision
If automated valuation using AI models is implemented, then pricing accuracy and market fairness are improved, but computational requirements and model training complexity increase
Solution Approach 1:
The system performs preliminary valuation by establishing a starting price for IP assets before they are listed on the marketplace. This pre-valuation process uses AI models to determine an initial fair price based on asset characteristics, reducing the need for continuous complex computations during trading. The preliminary pricing action establishes a baseline that maintains pricing accuracy while lowering ongoing computational requirements.
Solution Approach 2:
The patent implements feedback mechanisms where trading data and price adjustments are continuously fed back into the AI valuation models. This feedback loop allows the system to learn from actual market transactions and refine pricing accuracy over time. The iterative feedback process improves measurement precision while optimizing computational efficiency by focusing processing on incremental adjustments rather than complete re-evaluations.
4Reliability
If comprehensive trade verification and compliance reporting are implemented, then market stability and regulatory compliance are improved, but transaction processing time and administrative overhead increase
Solution Approach 1:
The system implements continuous verification processes where the clearinghouse constantly monitors trades, validates cryptographic signatures, and updates the share ledger in real-time. This continuous action ensures market stability through constant oversight without requiring periodic batch processing that would cause time losses. The uninterrupted verification maintains reliability while minimizing transaction processing delays through automated real-time validation.
Data Source
AI summary
Systems and methods can include a marketplace for securitized intellectual property with tokenization of shares and clearance and settlement of transfers. Tokenization can include maintaining a marketplace for securitized IP, receiving a request from an authorized entity to register a security, and registering the security within the marketplace. Registering can include receiving an escrow account for the security, executing a contract, and generating a number of shares for the security for exchange within the marketplace. Clearance and settlement of transfers can include receiving a trading request, calculating a total price for the trading request, and processing the trading request. Processing can include generating a unique token for the trading request, executing a transfer of the shares from a seller to a clearinghouse application, executing a transfer of currency from a buyer to the clearinghouse application, and executing a transfer of the shares from the clearinghouse application to the buyer.