Difference between revisions of "Intellectual Property Exchange International, Inc."

From MarketsWiki
Jump to: navigation, search
Line 3: Line 3:
 
| company_name = Intellectual Property Exchange International
 
| company_name = Intellectual Property Exchange International
 
| company_logo =  [[Image:Ipxi_logo.gif|200px]]  
 
| company_logo =  [[Image:Ipxi_logo.gif|200px]]  
| key_people =    [[Gerard Pannekoek]], CEO<br>[[James E. Malackowski]], Chairman
+
| key_people =    [[Gerard Pannekoek]], CEO<br>[[James E. Malackowski]], Co-Chairman
 
| foundation =    2007  
 
| foundation =    2007  
 
| location =      Chicago
 
| location =      Chicago
 
| employees =      <!-- Approx number of employees -->
 
| employees =      <!-- Approx number of employees -->
| products =      Yet-to-be-launched financial exchange with an intellectual property focus
+
| products =      Unit License Right (ULR) contracts
 
| homepage=        [http://www.ipxi.com www.ipxi.com]
 
| homepage=        [http://www.ipxi.com www.ipxi.com]
 
}}
 
}}
Line 15: Line 15:
 
The IPXI marketplace is designed to allow owners of IP to monetize their IP [[asset]]s more efficiently and give them access to [[risk management]] tools to [[hedge]] their [[exposure]]. On the [[buy-side]], it will give [[investor]]s access to new [[trading]], [[investment]], and [[arbitrage]] opportunities.<ref>{{cite web|url=http://www.ipxi.com/home|name=IPXI|org=IPX International|date=December 13, 2011}}</ref>
 
The IPXI marketplace is designed to allow owners of IP to monetize their IP [[asset]]s more efficiently and give them access to [[risk management]] tools to [[hedge]] their [[exposure]]. On the [[buy-side]], it will give [[investor]]s access to new [[trading]], [[investment]], and [[arbitrage]] opportunities.<ref>{{cite web|url=http://www.ipxi.com/home|name=IPXI|org=IPX International|date=December 13, 2011}}</ref>
  
IPXI was created by [[Ocean Tomo]] LLC. IPXI aims to meet the [[transaction]] and data needs of the IP marketplace including issuers, investors, [[trader]]s, [[market maker]]s, and brokers. According to early IPXI press releases, the IP market has a value of $5 trillion in the United States alone.
+
IPXI was created by [[Ocean Tomo]] LLC. IPXI aims to meet the [[transaction]] and data needs of the IP marketplace including issuers, investors, [[trader]]s, [[market maker]]s, and brokers. According to early IPXI press releases, the IP market has a value of $9.2 trillion in the United States alone.
  
In December 2011, IPXI announced that it had secured $10 million in funding from a group of investors, including the [[Chicago Board Options Exchange]] (CBOE). The five founding members - who have pledged to trade at least one [[Unit Licence Rights]] (ULR) contract on the exchange - are [[Royal Philips Electronics]] (Philips); [[Com-Pac International]], the packaging group, as well as Rutgers University, Northwestern University and the University of Utah.<ref>{{cite web|url=http://www.ft.com/intl/cms/s/0/731e578c-24ba-11e1-ac4b-00144feabdc0.html#axzz1gQuC09Rn|name=CBOE backs new intellectual property bourse|org=Financial Times|date=December 13, 2011}}</ref>
+
In December 2011, IPXI announced that it had secured $10 million in funding from a group of investors, including the [[Chicago Board Options Exchange]] (CBOE) and [[Royal Philips Electronics]] (Philips). The five founding members - who have pledged to trade at least one [[Unit Licence Rights]] (ULR) contract on the exchange - are Philips; [[Com-Pac International]], the packaging group, as well as Rutgers University, Northwestern University and the University of Utah.<ref>{{cite web|url=http://www.ft.com/intl/cms/s/0/731e578c-24ba-11e1-ac4b-00144feabdc0.html#axzz1gQuC09Rn|name=CBOE backs new intellectual property bourse|org=Financial Times|date=December 13, 2011}}</ref>
  
== Anticipated IPXI Products ==
+
== IPXI Products ==
  
=== Unit License Right (ULR) ===  
+
=== Unit License Right (ULR) Contract ===  
[[Unit License Right]] issuance would replace the bilateral negotiation process in IP licensing. IPXI would act as the issuer’s master licensing agent, managing an initial sale of ULRs as well as post-sale [[secondary market]] activity.
+
Through the ULR contract model, IPXI’s objective is to build an exchange that operates under two core principles that do not exist in traditional bi-lateral licensing: transparency and efficiency. The process starts with legal analysis designed to give the marketplace confidence in the quality of all patent rights listed as ULR contracts. Then IPXI undertakes the licensing process in a manner similar to a public equity offering for a corporation by utilizing detailed offering memorandums, road shows and potential buyer one-on-one meetings.
  
Upon approval of a candidate deal, IPXI would work with the issuer to structure the terms of the [[issuance]]. IPXI, in coordination with the issuer and IPXI affiliates, would then conduct a [[road show]] with probable buyers seeking indications of interest for the initial [[sale]]. IPXI and its affiliates would [[underwrite]] the ULR issuance and manage the initial sale as well as the [[secondary market]] for post-sale ULRs.
+
Once an initial offering has been priced, IPXI manages the primary issuance of ULR contracts. IP also maintains a secondary market which provides ULR contract purchasers and sellers an opportunity to realize liquidity through resale and trading. The secondary market also increases the primary market demand for ULR contracts as they become investment products, thereby maximizing revenues to the ULR contract sponsor. As demand requires, IPXI will issue follow-on primary market offerings of ULR contracts.
+
IPXI and its affiliates would manage the enforcement of the IP on behalf of the issuer against alleged infringers. IPXI, in coordination with the issuer, would determine whether additional issuance is warranted and permissible under the contingencies prescribed in the original ULR issue.
+
  
=== Tradable Technology Basket (TTB) ===
+
Finally, a rules-based approach to directed enforcement allows ULR contract sponsors to passively enforce IP rights with different choices to fund litigation, including either self-funded enforcement, IP insurance or third-party funded enforcement.
Tradable Technology Baskets (TTBs) are [[financial futures]] products that will allow IP owners, investors, and traders to gain exposure to, or [[hedge]], emerging technologies. TTBs would come in a variety of flavors defined by the basket of IP behind the contract. The baskets are groups of related patents covering a particular technology or technologies, and the futures product [[cash settles]] to the value of the IP in the basket. Rather than piecing together indirect exposure from a combination of [[equities]] and [[commodities]], TTBs would give [[buyer]]s and [[seller]]s direct exposure to [[solar energy]] or Blu-Ray or glucose monitoring or RFID or [[bioethanol]].
+
 
+
Technology baskets would build upon the model developed for patent pools such as MPEG-LA or DVD6(C). Using proprietary tools and in-house IP expertise, IPXI would first assesses whether a candidate technology could be effectively fenced in by a pool of 1,000 to 5,000 issued U.S. patents. Following IPXI’s determination of patents to be included in a specific TTB, historical pricing and a product specification sheet would be developed. Finally, research tools and data would be made available to market participants to drive model development and [[trading strategies]]. By focusing product development on the IP, TTBs would provide access to emerging technologies that may or may not have resulted in marketable products and services. Further, TTBs could cover patents that are owned by [[public]] corporations, [[private]] firms, universities, and the public sector.
+
 
+
=== Single Corporation Intellectual Property Index (SCIPI) ===
+
IPXI will offer financial futures products tracking IP [[asset]]s held by qualified public companies, private firms, universities, public sector entities, and those embedded within [[venture capital]] and [[private equity]] [[portfolio]]s. The SCIPIs would represent a new generation of financial products - synthetic exposure to the IP driving [[economic]] growth in the 21st century.
+
 
+
Using [[proprietary]] tools and analysis, IPXI has the ability to link patents with their proper owners, whether they be public companies, private firms, small businesses, universities, public sector entities, or inventors. Once IPXI has assembled the appropriate patents in one bucket, i.e. all patents owned by Microsoft or all patents owned by MIT or all patents owned by NASA, the same valuation methodology used for TTBs is applied to the patents in each bucket. Similar to the development process for TTBs, historical pricing, research tools, and data for each SCIPI are made available to market participants.
+
  
 
== History ==
 
== History ==
 
+
IPXI was founded by Ocean Tomo. The development of the exchange began with support from the State of Illinois in 2006. Two public town-hall meetings with several hundred corporate IP owners, inventors and other market participants were held. Fourteen national and international corporate and university IP managers attended the initial Rulebook meeting in March 2010. Beyond these formalized meetings, hundreds of IP ecosystem participants have contributed to the development of the exchange and the initial product, the ULR contract.
== Products and Services ==
+
  
 
== Key People ==
 
== Key People ==
 
*[[Gerard J. Pannekoek]], President & CEO <br>
 
*[[Gerard J. Pannekoek]], President & CEO <br>
*[[James E. Malackowski]], Chairman <br>
+
*[[James E. Malackowski]], Co-Chairman <br>
 
*[[Michael D. Friedman]], Director <br>
 
*[[Michael D. Friedman]], Director <br>
 
*[[Ian D. McClure]], IP Transactional Associate <br>
 
*[[Ian D. McClure]], IP Transactional Associate <br>

Revision as of 05:16, 14 December 2011

Intellectual Property Exchange International
Ipxi logo.gif
Founded 2007
Headquarters Chicago
Key People Gerard Pannekoek, CEO
James E. Malackowski, Co-Chairman
Products Unit License Right (ULR) contracts
Website www.ipxi.com

The Chicago-based Intellectual Property Exchange (IPXI) is aiming to become the world’s first financial exchange with an intellectual property focus. The exchange expects launch its first trading products in 2012.

The IPXI marketplace is designed to allow owners of IP to monetize their IP assets more efficiently and give them access to risk management tools to hedge their exposure. On the buy-side, it will give investors access to new trading, investment, and arbitrage opportunities.[1]

IPXI was created by Ocean Tomo LLC. IPXI aims to meet the transaction and data needs of the IP marketplace including issuers, investors, traders, market makers, and brokers. According to early IPXI press releases, the IP market has a value of $9.2 trillion in the United States alone.

In December 2011, IPXI announced that it had secured $10 million in funding from a group of investors, including the Chicago Board Options Exchange (CBOE) and Royal Philips Electronics (Philips). The five founding members - who have pledged to trade at least one Unit Licence Rights (ULR) contract on the exchange - are Philips; Com-Pac International, the packaging group, as well as Rutgers University, Northwestern University and the University of Utah.[2]

IPXI Products

Unit License Right (ULR) Contract

Through the ULR contract model, IPXI’s objective is to build an exchange that operates under two core principles that do not exist in traditional bi-lateral licensing: transparency and efficiency. The process starts with legal analysis designed to give the marketplace confidence in the quality of all patent rights listed as ULR contracts. Then IPXI undertakes the licensing process in a manner similar to a public equity offering for a corporation by utilizing detailed offering memorandums, road shows and potential buyer one-on-one meetings.

Once an initial offering has been priced, IPXI manages the primary issuance of ULR contracts. IP also maintains a secondary market which provides ULR contract purchasers and sellers an opportunity to realize liquidity through resale and trading. The secondary market also increases the primary market demand for ULR contracts as they become investment products, thereby maximizing revenues to the ULR contract sponsor. As demand requires, IPXI will issue follow-on primary market offerings of ULR contracts.

Finally, a rules-based approach to directed enforcement allows ULR contract sponsors to passively enforce IP rights with different choices to fund litigation, including either self-funded enforcement, IP insurance or third-party funded enforcement.

History

IPXI was founded by Ocean Tomo. The development of the exchange began with support from the State of Illinois in 2006. Two public town-hall meetings with several hundred corporate IP owners, inventors and other market participants were held. Fourteen national and international corporate and university IP managers attended the initial Rulebook meeting in March 2010. Beyond these formalized meetings, hundreds of IP ecosystem participants have contributed to the development of the exchange and the initial product, the ULR contract.

Key People

References

  1. IPXI. IPX International.
  2. CBOE backs new intellectual property bourse. Financial Times.