The Next Generation of NFTs
An ecosystem to tokenize patents can allow intellectual property to be treated as business assets, making patents easier to license, sell and commercialize
Questions and Answers
IP NFTs are set to benefit banks, insurers, capital markets players – and anyone who lends, insures or invests money.
It certainly is a critical step and we think a market will develop. Economists and history tell us that transparency, information, standardization and ease of interaction are critical to the formation of new asset classes and new markets. Capital tends to pursue opportunities that exhibit these attributes. NFTs technologically enable what was simply too complex or simply not possible before.
NFTs make trading IP much more cost efficient. Today’s process requires attorneys, contracts and paper-based processes. By using an NFT, the entire model is simplified.
The smart contract is built into the token with standardized terms associated with every patent. The owner of the patent sets their contract terms, what is public and what is not. The capital and other transaction partners have the transparency, information standardization and ease of interaction they need.
IPwe works with the IP owner to evaluate and help set the initial indicative value—a reference range–of the token at the time of issuance.
Yes, a copyright, trade secrets and patents can all be turned into an NFT. IPwe is first starting with patents and will expand into other IP as the platform advances to meet additional needs of the market participants. Licensing rights are a simple example that will benefit innovators, creators and capital.
Fractional ownership of a patent today is difficult. Today, the USPTO requires a two page fax to file a patent assignment. IPwe believes that fractional ownership at the NFT level will change behavior in how IP is owned, developed and commercialized.
The NFTs are intended to be traded in public marketplaces besides the IPwe Platform. In fact, IPwe is in active discussions with other public marketplaces to facilitate broader and more open trading.
Industry Experts Weigh In
Be the first to know
Receive Patent NFT information & announcements