Intellectual Property Exchange International, Inc. (IPXI), which characterizes itself as the world’s first financial exchange for licensing and trading intellectual property (IP) rights, reports that it has closed its first two initial offerings.
Both offerings are “based on patent rights to prepaid stored value card (SVC) technology owned by JPMorgan Chase Bank, N.A.,” according to an IPXI statement. “Trading on the contracts can now take place on the IPXI Trading Platform.”
The SVC offerings are in the form of unit license right (ULR) contracts, which are trademarked “standardized, exchange-traded, non-exclusive patent license rights,” created by IPXI, according to the statement, and they are “priced and sold on a technology-unit basis to allow for easy monitoring of the adoption and use of the technology.”
Each contract provides “license rights to 17 U.S. patents and four U.K. patents filed as early as 1998” and “represents the right to produce 100 stored value cards,” IPXI notes, adding that “trading is now open to both operational users — those who wish to license the technology rights — and professional trading firms and institutions interested in investing in and trading IP-based contracts.”
“These are the first in what we expect will be a long line of offerings involving well-vetted IP portfolios that together can make the one-to-many licensing model significantly more efficient for all parties, thereby reducing costly litigation, bringing much-needed transparency and enabling organizations to monetize their innovations,” Gerard Pannekoek, IPXI president and CEO, says in the statement. “We anticipate a slow but steady build as those who have and need valuable technology begin to adopt this model.”
IPXI is funded by a group of U.S. and European investors, according to the exchange, including CBOE Holdings, Inc. and Koninklijke Philips N.V. Its members include Ford Global Technologies, LLC, Philips Intellectual Property & Standards, JPMorgan Chase Bank, N.A., Sony Corporation of America, Panasonic Intellectual Property Corporation of America, the Regents of the University of California, Columbia Technology Ventures, Northwestern University, Lawrence Livermore National Laboratory and Fraunhofer-Gesellschaft.
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