Authors, artists and inventors have significant difficulties concerning the management of the rights relative to their works. The protection of works and the collection of royalties are often blurred.
It is the same problem for institutional IP that represents IP rights held by States, for which the frame is complicated. These rights particularly concern patents of technical, scientific, and medical research.
Furthermore, IP is a complex area partly due to its abstract nature. The main difficulty is that IP protection varies by type and geography in a random way. This explains why securitization of IP assets in the narrower sense has not been done prior to IPSE.
IPSE’s innovative concept of IP rights’ securitization is dedicated to the profitability of any IP rights, including the IP of artists, authors, inventors, and also more widely to research and creation, being directly converted into securities using IPSE’s system, and will be generally represented by tradable securities.
According to IPSE’s securitization system, the security will incorporate the IP right, which will be assigned as a classical security, disposable on the private or public market. The Issuer’s concept operates on a similar model to pass-through securities.
Thus, IPSE will process as follows:
- Analyze and pool the IP rights according to their characteristics;
- Process the securitization of these IP rights;
- Manage transactions concluded on IP securities between the IP holders and investors.
IPSE will thus be the intermediary between the rights’ holders and investors; the Issuer will manage IP rights of authors, artists, inventors and even institutional rights.
The securitization process concerns existing works but also new artistic projects and scientific research of all kinds. The Issuer will support them by organizing their IP rights’ securitization which will raise new funds through crowdfunding campaigns. For instance, IPSE will give rights and memorabilia relating to specific IP to crowdfunders who contributed to the project’s financing.
In order to guarantee the Issuer’s transparency and efficiency, all IPSE’s services will be executed automatically by software. During the first year of activity, the core part of the software will be effective for the securitization and the management services.
Once the IP rights are converted into securities, IPSE will be in charge of their management, which means that the management of transactions on these securities will be able to generate funds, in the private and public market places.
- Management of Crowfunding transactions
- Grants for technical support
- Scientific or medical research