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[Presentation] Webinar on Patent Management and Patent Asset STO in the ChatGPT Era
The document discusses the strategic importance of patents as valuable business resources, highlighting their financial and commercial utilization along with challenges in ownership disputes and monetization. It illustrates various business models for leveraging patents, including licensing, partnerships, and their role in mergers and acquisitions. Additionally, Liquidax is introduced, detailing its approach to acquiring and commercializing IoT patents to boost growth and competitiveness in various sectors.
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[Presentation] Webinar on Patent Management and Patent Asset STO in the ChatGPT Era
- 1. Patent Management &STO Patent Management & STO i th Ch tGPT E in the ChatGPT Era 7/29, 2023 7/29, 2023 Alex G. Lee
- 2. Patents: A KeyValuable Business Resources Motorola Mobility Patents Value: $9,59bn Nest Labs’ patent value recognition in M&A Nest Labs, founded in 2010, acquired by Google for $3.2 billion in 2014. Build up 132 US issued patents (+ pending applications + international families) in four years years Cf. SmartThings’ acquisition by Samsung for $200 million with no patent g q y g p *notice the value difference: $3.2 billion v. $200 million
- 3. Finance of Patents PatentFinancial & Commercial Utilization Financial Utilization of Patents Commercial Opportunities of Patents Patents can be considered as financial assets because they have value and can be used as a Patents can be monetized by licensing the patented to other companies, selling the patent outright, or using the patent to generate income through Commercial Opportunities of Patents Licensing: If you own a patent, you can license it to others who want to use it. This can create a steady stream of revenue without requiring you to manufacture or market the product yourself Licensing can also help source of revenue or collateral. Patents can also be considered as non financial assets in the sense using the patent to generate income through litigation. Challenges: Disputes over the ownership or validity of patents can be time- consuming and expensive to resolve.; Patents of l lit ith li it d l t b to manufacture or market the product yourself. Licensing can also help you to expand the market reach of your innovation by allowing others to use it in ways you may not have considered. non-financial assets in the sense that they represent an intangible asset that provides legal protection for an invention and can be used low quality or with limited value may not be effective in generating revenue.; The costs associated with patent monetization process can be high. Spin-offs: Patents can be the basis for creating spin-off companies that focus on developing and marketing products based on the patented technology. to build a competitive advantage in the market. Patents can be considered as an g Patent securitization provides an alternative financing option for companies by issuing securities backed by their patents Partnerships: Patents can be used as a bargaining chip in negotiations with other companies. For example, a company with a valuable patent may be able to use it to secure a partnership or joint venture with a l th t h th t d l d k t th Patents can be considered as an asset class, as they are a form of intangible asset that provides legal protection for an invention and can backed by their patents. Challenges: The process of patent securitization is time-consuming and costly.; The value of patents can be difficult to determine, which can lead to larger company that has the resources to develop and market the product. Competitive advantage: Patents can provide a competitive advantage be bought and sold. Patents have the potential to generate financial alpha (returns uncertainty; Finding the resale market for patent security interests is difficult. In patent-backed lending patents serve as p g p p g by protecting your innovation from being copied by others. This can help you to capture a larger share of the market and increase profits. Investment: Patents can also be used to attract investment If you have generate financial alpha (returns that are higher than the market average) by providing legal protection for an invention and ti th h In patent-backed lending, patents serve as collateral for the loan, and the lender can take possession of the assets if the borrower defaults on the loan. Investment: Patents can also be used to attract investment. If you have a patent for a technology or product that has significant commercial potential, investors may be more willing to invest in your company. generating revenue through licensing or enforcement. Challenges: The value of patents can be difficult to determine, which can lead to uncertainty. M&A: Companies with a strong patent portfolio often receive higher valuations and a better negotiating position during M&A transactions.
- 4. Alex for PatentBusiness
- 5. IoT Innovation Fundfor Business Growth IoT Innovation Fund for Business Growth 5 Dec. 9, 2016 Alex G Lee (alex lee@liquidax com) Alex G. Lee ([email protected])
- 6. Introduction to Liquidax q •Liquidax identifies, acquires and commercializes Internet of Things (IoT) patents and correlated technologies for target injection into numerous public companies operating on l b l t k h ll t it l b k d i t i b ti global stock exchanges, as well as, venture capital backed private companies boosting business growth and expediting exits. • Our infrastructure is based on a combined VC and PE model in order to aggressively acquire and exploit high-quality patents and correlated technologies for IoT innovations of our portfolio partners. Th Li id d b t f d Li id Gl b l E h F d I LP i 6 • The Liquidax debut fund; Liquidax Global Exchange Fund I, LP is a private equity fund. We are currently building relationships with IP/Tech and Global portfolio partners. IP/Tech and Global portfolio partners.
- 7. Our Approach Identify KeyIoT Technologies for Applications in Many Markets/Sectors Globally • Identify Key IoT Technologies for Applications in Many Markets/Sectors Globally • Acquire Superior IoT Patents and Correlated Technologies • Identify Key Innovation Strategies with Portfolio Companies • Identify Key Innovation Strategies with Portfolio Companies • Provide Superior IoT Innovation Development Platform – Intellectual Property Rights (IPR) for keeping out your competition – Intellectual Property Rights (IPR) for keeping out your competition – Technology for innovation implementation – Technology Transfer (Prototypes Software Etc) developed in concert with patents Technology Transfer (Prototypes, Software, Etc) developed in concert with patents • Only compensated One Time in equity & some cash at the closing of each sub-license – We believe in long term growth of your business 7 We believe in long term growth of your business – Place equity into funded IoT ETF at conclusion of the fund – No additional quarterly/annual licensing fees, costs or additional semi-annual royalties ever. q y g , y
- 8.
- 9. What We Provideto Portfolio Partners Strategically packaged technology that is in complete alignment with IPR providing maximum • Strategically packaged technology that is in complete alignment with IPR providing maximum protection • Selection of key patented technologies for the competitive advantages and business growth based on emerging IoT market insights • Benefits – Alternative to costly M&A and time consuming internal R&D Enable cost effective and faster time to market 9 – Enable cost effective and faster time to market – Enable lower risk and high ROI innovation investment Enable new product/service development in alignment with business strategies – Enable new product/service development in alignment with business strategies – Accelerates Growth, Limits Competitors, and Increased Corporate Value
- 10. Liquidax Core Competencies •Superior Industry Experience in IoT Technologies and Patents U d t d i ti d i t h t i ill d – Understand innovations and requirements what companies will need – Select specific technology that is essential for emerging markets Ensure more competitive positions over competitors – Ensure more competitive positions over competitors – Enables innovative products and services • Identify Validate & Acquire Innovations and IP Rights that are “proven”; allowing partners to • Identify, Validate & Acquire Innovations and IP Rights that are proven ; allowing partners to rapidly innovate and integrate new innovation and IPR into existing markets & platforms • Ensures partners can save money in the development, acquisition, integration and application su es pa e s ca sa e o ey e de e op e , acqu s o , eg a o a d app ca o of new technologies and IP rights. • Use proven technology platforms and infrastructures allowing success in today’s world 10 • Clear understanding of current sectors and emerging trends of IoT industries and market development P f li h i ll k d i h h l h i i l • Patent portfolios that are strategically packaged with proven technology that is in complete alignment with issued intellectual property rights for use in existing markets thus eliminating risks risks
- 11. Liquidax Patented TechnologyPortfolio Liquidax Patented Technology Portfolio RTLS (Real Time Location System) RTLS (Real Time Location System) • High precision/accuracy low cost indoor location finding system: RTLS are used to automatically identify and track the location of objects or people in real time within a contained area identify and track the location of objects or people in real time within a contained area. • Liquidax patented WiFi/Bluetooth based RTLS technology exploits WiFi based finger printing technique with Bluetooth based error correction method for providing high precision/accuracy low cost indoor localization. Intelligent Wireless Connectivity • Multi-radio adaptive connectivity with secure data transfer: Intelligent Wireless connectivity enables adaptive selection of wireless network standards for optimal diverse usage providing and 11 enables adaptive selection of wireless network standards for optimal, diverse usage providing, and secured data transfer connectivity. • Liquidax patented intelligent wireless connectivity technology enables secured interference Liquidax patented intelligent wireless connectivity technology enables secured interference resistant dynamic intelligent network selection of a radio communication standard among available heterogeneous wireless networking standards.
- 12. Liquidax Patented TechnologyPortfolio q gy Advanced Wireless Sensor Networks R b t d i d d t t i i d ti it Wi l • Robust, dynamic, power-aware, and secure data transmission sensor nodes connectivity: Wireless sensor networks (WSN) involve hundreds or thousands of small sensor nodes that can remotely communicate with neighboring devices. co u ca e e g bo g de ces • Liquidax patented wireless sensor network technology enables opportunistic location-aware connectivity among energy harvesting sensor nodes for secure sensor data transfer and usage. Advanced M2M Telemetry/Telematics • Future-market adaptive (e.g., compatible with emerging IoT connectivity) remote monitoring/control system: Machine-to-machine (M2M) communications technologies allow remote monitoring and control of assets or people 12 control of assets or people. • Liquidax patented M2M technology enables a low message rate, power-aware, and secured wireless connection that is capable of monitoring/control large numbers of the IoT devices cost e ess co ec o a s capab e o o o g/co o a ge u be s o e o de ces cos effectively.
- 13. Liquidax Patented TechnologyPortfolio Liquidax Patented Technology Portfolio Location based AR (Augmented Reality) • Better instruction and decision making for users: AR is the integration of digital information with the • Better instruction and decision making for users: AR is the integration of digital information with the user's environment in real time such that overlays new information on top of the existing environment. Combining with RTLS technology, the location based AR enables diverse IoT applications. • Liquidax patented location based AR technology enables delivery of visually augmented location- b d i f ti ( i t f i t t idi t ) based information (e.g., points of interest guiding system). Smart Data Center Connectivity Smart Data Center Connectivity • Software-defined Networking (SDN) based big data storage & processing system connectivity: As the amount of traffic increases, there is a greater need for simple, scalable end-to-end network 13 the amount of traffic increases, there is a greater need for simple, scalable end to end network architectures and implementations that enable big data storage & processing system to use the network most efficiently. SDN enables programmatic control of the data center network system to t th i t f th bi d t li ti meet the requirements of the big data applications. • Liquidax patented SDN controller software controls network traffic among the network devices for providing fault tolerant secured and efficient data transfer among network devices providing fault tolerant, secured, and efficient data transfer among network devices.
- 14. Liquidax Patented TechnologyPortfolio q gy Sensor Fusion • Improved sensor fusion to determine desired information: Sensor fusion is a process of combining p p g data from different sensors to produce output more than could be determined by any one sensor alone. Sensor fusion algorithm techniques include Kalman Filtering, Covariance Intersection, Hidden Markov Models Partially Observable Markov Decision Process and Bayesian Networks Hidden Markov Models, Partially Observable Markov Decision Process, and Bayesian Networks solution. • Liquidax patented sensor fusion technology provides simplified and advanced sensor fusion Liquidax patented sensor fusion technology provides simplified and advanced sensor fusion technique to obtain desired information for diverse applications. 14
- 15. Business Opportunities Technology IoTApplication/ Use Case Applicable Industry RTLS Tracking of assets and people, theft prevention, navigation system, location base CRM, inventory management, public safet (e g locate firefighters) man fact ring a tomation Health care, manufacturing, automotive, retail, convention, entertainment, security, robot, transportation, logistics safety (e.g., locate firefighters), manufacturing automation y p g Intelligent Wireless C ti it Home/building automation, connected health care, f t i t ti i ti d i Consumer electronics, industrial automation, health care, f t i t l i ti Connectivity manufacturing automation, communication devices manufacturing, telecommunication Advanced WSN Smart farming, manufacturing automation, connected car, environmental monitoring, industrial control Agriculture, weather, military, automotive 15 environmental monitoring, industrial control Advanced M2M Smart meter, smart grid, asset tracking, connected car, industrial control Energy, agriculture, manufacturing, telecommunication, industrial electronics Tracking of assets and people navigation system location Location based AR Tracking of assets and people, navigation system, location base CRM, inventory management, manufacturing automation Consumer electronics, automotive, retail, convention, entertainment, industrial electronics, agriculture, manufacturing SDN Data center, cloud service Telecommunication, IT, industrial electronics Autonomous vehicle, surveillance systems, vision-augmented navigation, personal fitness/health Consumer electronics, automotive, security, energy, agriculture, Sensor Fusion vision augmented navigation, personal fitness/health management, manufacturing automation Consumer electronics, automotive, security, energy, agriculture, manufacturing, health care, robot
- 16. Does your companyhave 'freedom to operate' your AI business without patent litigation risk? Alex G. Lee (https://www.linkedin.com/in/alexgeunholee/)
- 17. Metaverse Innovation Insightsfrom Patents
- 18. Patents AI Demos DemoVideo: https://www.youtube.com/watch?v=kVmHmh0Kbos
- 20. AI for PatentManagement Patent Drafting C titi I t lli Patent Drafting Claims to Specifications/Figures Competitive Intelligence Classification/Landscaping Technology Summarization Technology Forecasting Comparing Patent Similarity to Detect Competitors Infringement https://www.youtube.com/watch?v=tmoBrD5Jn6g&t=57s Infringement Prior Arts Search for Validity through Text Similarity Measurement C AI b d d t i h th t t Inventive Ideas to Claims Seed Input: “An artificial intelligent emotion chatbot using an advanced deep learning natural language processing.” Can AI be used determine whether a patent reads on a given product or service? (i) analyze for evaluating the scope of the patent claims and (ii) determining whether the Generated Patent Claim An artificial intelligent emotion chatbot using an advanced deep learning natural language processing (ALS) framework and being configured to respond to a natural language spoken by an individual, the artificial intelligent emotion chatbot comprising: a natural language understanding component that receives a natural language from the individual, that receives emotion information from the individual, and th t i t t l i f ti th t l t t it ti th t h b i d b th i di id l patent claims and (ii) determining whether the claims map to an allegedly infringing process or system Valuation that receives contextual information that relates to a situation that has been experienced by the individual; a machine-learning component that processes the emotion information and the contextual information into actionable emotion data, and that outputs the actionable data, wherein the machine-learning component includes: an emotion converter that receives the emotion data from the emotion data generator and that generates a sentiment value that corresponds to the emotion data; a contextual converter that receives the contextual information from the individual and that generates a Valuation a contextual converter that receives the contextual information from the individual and that generates a context value that corresponds to the contextual information; an action generator that, for each situation that has been experienced by the individual, generates a hypothetical action that relates to the situation, wherein the hypothetical action is generated based on the context value and the actionable data; and an output component that outputs each of the hypothetical actions generated by the action generator; and a human interface component that receives the actionable data from the output component and that displays a human interface component that receives the actionable data from the output component and that displays a user interface that receives input from the user based on the input received. Patent Transformer: https://www.researchgate.net/publication/342275960_PatentTransformer_A_Framework_fo r_Personalized_Patent_Claim_Generation
- 21. ChatGPT for PatentDrafting
- 22. ChatGPT for PriorArts & Licensing/Infringing Targets Search
- 23. AI x BlockchainPowered SIAM 스마 무형자산 경영 Patent Evaluation &Valuation (스마트 무형자산 경영) 플랫폼 소개 플랫폼 소개
- 24.
- 25. 개별특허 품질 및가치 평가 구글 특허 US10452978를 OpenAI의 ChatGPT SIAM은 인공지능 기반의 품질 및 가치 평가를 통해 고품질/가치 개별특허를 찾고 경영할 수 있도록 한다. 구글 특허 US10452978를 OpenAI의 ChatGPT 아키텍처가 침해 한다는 사용증거 차트(EoU) (Attention-based sequence transduction neural networks: Google) 구글 AI 특허에 대한 평가 Quality Score: 90% Validity Score: 70% Family Rating: BBB
- 26. 특허 포트폴리오 품질및 가치 평가 삼성전자의 스마트폰/이어폰이 삼성전자 전 IP 센터장이 관계하는 NPE의 특허번호 품질지수(Qscore) 유효성지수(Vscore) 가치 ($) 삼성전자의 스마트폰/이어폰이 삼성전자 전 IP 센터장이 관계하는 NPE의 특허 포트폴리오를 침해한다고 소송에 사용된 특허들 특허번호 품질지수(Qscore) 유효성지수(Vscore) 가치 ($) US8111839 99 59 841,180 US8254591 99 62 857,538 US8315400 98 44 718,860 US9124982 99 63 758,406 US9270244 99 64 1 952 392 US9270244 99 64 1,952,392 US9491542 98 56 881,898 US9609424 100 47 621,854 US10405082 76 45 719,030 US10966015 76 65 994,875 US10979836 100 40 589 401 US10979836 100 40 589,401 US11039259 99 43 1,319,117 US11057701 99 68 780,779 , US11217237 69 59 594,501 US11244666 99 47 1,232,472 2:21-cv-00413 - Synergy IP Corp et al. v. Samsung Electronics Co Ltd et al.
- 27. 특정회사 전체 특허포트폴리오 품질 및 가치 평가: LG 전자
- 28. Tokenization & Securitizationof Real-World Assets Overview Tokenization Securitization Tokenization of real-world assets involves converting assets into digital tokens on a blockchain, offering numerous Security Token Offerings (STOs) represent a new way of securitizing real-world assets, providing benefits over traditional Initial Public Offerings benefits such as enhanced liquidity, lower transaction costs, and increased transparency. benefits over traditional Initial Public Offerings (IPOs) such as lower costs and increased accessibility. Asset-backed tokens are created by tokenizing real-world assets, with various categories and use cases, including real t t t i t ll t l t STOs involve a multi-step process, including registration or seeking exemptions, and often employ Special Purpose Vehicles (SPVs) to tokenize assets estate, art, intellectual property, security and commodities. These tokens bridge the gap between tokenize assets. These offerings can create both equity and debt securities for asset-backed tokens, with platforms g g p traditional and digital financial markets, enabling diverse investment strategies, risk and return profiles, and innovative financial products supporting various token standards and ensuring compliance with KYC/AML regulations. Secondary markets for STOs provide liquidity, innovative financial products. As the market structure evolves, intermediaries and market participants Secondary markets for STOs provide liquidity, while real-world asset STO valuations and accredited investor involvement ensure robustness. Various intermediaries, including k t k d k ti i t di i l must adapt to capitalize on the potential of asset-backed tokens in both primary and secondary markets, paving the way for a more efficient and accessible market makers and marketing intermediaries, play a crucial role in the ecosystem. Smart contract design enables automation and security in the STO process, allowing for efficient tokenization for a more efficient and accessible financial ecosystem. p , g of real-world assets and opening new investment opportunities.
- 29.
- 30. Security Token Overview Asecurity token refers to the tokenization and securitization of real-world assets using Baxter Hines “ Digital Finance” Wiley A security token refers to the tokenization and securitization of real-world assets using Distributed Ledger Technology (DLT), such as blockchain, to facilitate investment in the economic value creation of these assets more easily and efficiently. Security tokens provide digital proof of rights, including ownership, for various real-world assets Baxter Hines, “ Digital Finance”, Wiley tokens provide digital proof of rights, including ownership, for various real world assets and validate their security. Equity security tokens function similar to stocks on the blockchain, granting ownership q y y , g g p stakes to shareholders and providing dividends, profit sharing, or other interest. Debt security tokens are supported by debt financial products and can be easily automated using smart contracts, reducing payment times and operational risks. Revenue- sharing security tokens belong to token types similar to stocks and leverage smart contracts to enable smooth distribution of earnings, offering advantages to companies reliant on profit-sharing ratios for various agreements. Overall, security tokens simplify and streamline the investment process for various asset classes, reduce costs, expand investor accessibility, and increase liquidity. S it t k i t t diti l fi b t ti d i t Security tokens innovate traditional finance by automating processes, reducing costs, and enhancing functionality through blockchain and smart contracts. By digitizing ownership records and transaction histories, security tokens simplify management tasks and facilitate smooth asset transfers Sec rit tokens enable contin o s trading tasks and facilitate smooth asset transfers. Security tokens enable continuous trading without geographical or time constraints, accelerate transaction execution by eliminating intermediaries, and provide interoperability between assets, enabling swift processing of transactions and fostering creative financial solutions Furthermore processing of transactions and fostering creative financial solutions. Furthermore, tokenization allows for fractional ownership, providing investment opportunities to a wider range of investors and promoting market liquidity.
- 31. KKR i ti t it fi h t d i t th ld f t k i ti b i t d i it fi t t k i d i t it STO Cases: KKR - Tokenized Private Equity Investment Fund KKR, a prominent private equity firm, has ventured into the world of tokenization by introducing its first tokenized private equity fund. This STO, facilitated by Securitize, a leading transfer agent and broker-dealer/alternative trading system, involves tokenizing a portion of the existing Health Care Strategic Growth Fund II (HCSG II) on the Avalanche blockchain. The fund, valued at $4 p g g ( ) billion, focuses on investing in innovative healthcare companies across various sub-sectors. HCSG II aims to generate strong returns by investing in innovative healthcare companies in various sub-sectors such as biopharmaceuticals, medical devices, healthcare services life science tools/diagnostics and healthcare information technology healthcare services, life science tools/diagnostics, and healthcare information technology. Through the tokenized feeder fund model, investors can purchase security tokens representing economic interests in the fund, ti th i ht t t ti l t f th i f d Th i i b i f thi t k i d ff i h b i ifi tl granting them rights to potential returns from the main fund. The minimum buy-in for this tokenized offering has been significantly reduced to $100,000 from the traditional $5 million, allowing a wider range of qualified investors to participate. After a lockup period of 12 months under the Regulation D securities exemption, KKR may choose to list and trade the tokenized fund on the Securitize Markets ATS. This would provide additional liquidity and access to secondary markets for both accredited and retail investors and retail investors. The target size of the tokenized fund is estimated to be between $30 and $50 million, although the exact figure remains undisclosed. KKR's foray into tokenization represents a significant step toward exploring the potential of digital securities and testing the infrastructure of blockchain-based solutions in comparison to traditional capital markets. The firm acknowledges the transformative power of blockchain technology in digitizing operational processes and increasing ease of use for investors, transformative power of blockchain technology in digitizing operational processes and increasing ease of use for investors, emphasizing its importance in shaping the future of private markets.
- 32. STO Cases SNK Mt i l b l l d i l t i hi l d h d t li f 6 t f ll SNK Motors is a global leader economic electric vehicle and has a product line-up of 6 types of small cars. Tu Meng Bi is a real estate development project in Palawan, which is an archipelagic province of the Philippines.
- 33. STO Full RegistrationExemption Method In the US Regulation Amount per 1 year period Investor Requirement/Manner of Offering Cost Transfer Limitation R D R l 504 $10 M N ifi t i ti F D/ l li it ti $50 000 1 Reg D Rule 504 Rule 506(b) $10 M Unlimited No specific restrictions Unlimited US accredited investors/up to 35 non-accredited investors Form D/general solicitation Form D/no general solicitation $50,000 - 150,000 1 year Rule 506(c) Unlimited 35 non-accredited investors Unlimited US accredited investors Form D/general solicitation R S U li it d N dit d/ dit d Off h i d SEC $20 000 1 f l Reg S Unlimited Non-accredited/accredited Offshore Investors subject to local law (e.g., restrict investor in China ) no required SEC registration/Private Placement Memorandum (PPM) and $20,000 - $50,000 depending on 1 year for resale into the US/local law Subscription Agreement/general solicitation complexity holding period Reg A+ Tier 1 $20 M Accredited and non-accredited investors, as well as both U S and non U S Form 1-A/general solicitation Higher than Reg D No holding period Tier 2 $75M as well as both U.S. and non-U.S. investors For Tier 2: annual (Form 1-K), semi-annual (Form 1-SA), and current event reports (Form 1-U) Reg D period current event reports (Form 1 U) to the SEC
- 34.
- 35.
- 38. Key Differences BetweenSTO in Korea & USA S it A t I th USA th H T t i d t d t i h th t ti lifi "i t t Security Assessment - In the USA, the Howey Test is used to determine whether a transaction qualifies as an "investment contract" and thus a security. It asks whether there is an investment of money in a common enterprise with an expectation of profit predominantly from the efforts of others. If so, it's a security. South Korea has different criteria (narrower/stricter p p y , y ( interpretation) for defining what constitutes a security. Off i I th USA iti ff i b ith bli ( ff d t l i t ) i t ( ff d t ifi Offering - In the USA, securities offerings can be either public (offered to general investors) or private (offered to a specific, limited group of investors), each with its own set of regulations. In South Korea, securities offerings can only be public. Issuance and Distribution - This refers to whether the issuance and distribution of the security tokens are managed by the same entity or separate entities. In S. Korea, these processes should be separated. Blockchain (DLT) - The type of blockchain utilized for STOs may differ between the two countries. In the USA, both public and private blockchains can be used. In South Korea private blockchains can only be used. p p y Primary Market - In South Korea, primary market transactions for STOs are restricted to the Korea Exchange (KRX). Secondary Market - In the USA, secondary market transactions for STOs are often conducted on Alternative Trading Systems (ATS), which are regulated by the SEC. In South Korea, the secondary market infrastructure for STOs might be different. ( ), g y , y g
- 39. Tokenization, Securitization, andMonetization of Patents Tokenization Securitization Tokenization of patents involves converting IP assets into digital tokens on a blockchain, offering Securitization Security Token Offerings (STOs) represent a new way of securitizing patents, providing benefits over traditional financing methods such as lower costs , g numerous benefits such as enhanced liquidity, lower transaction costs, and increased transparency. traditional financing methods such as lower costs and increased accessibility. STOs involve a multi-step process, including Patent-backed tokens are created by tokenizing patent assets. registration or seeking exemptions, and often employ Special Purpose Vehicles (SPVs) to tokenize assets. These tokens bridge the gap between traditional and digital financial markets, enabling diverse investment These offerings can create both equity and debt securities for patent-backed tokens, with platforms supporting various token standards and C/ Monetization g strategies, risk and return profiles, and innovative financial products. A th k t t t l ensuring compliance with KYC/AML regulations. Secondary markets for STOs provide liquidity, while patent asset STO valuations and accredited The monetization of patents through patent-backed tokens is transforming the investment landscape, with platforms enabling the creation and trading of both fungible and non- As the market structure evolves, intermediaries and market participants must adapt to capitalize on the potential of patent-backed tokens in while patent asset STO valuations and accredited investor involvement ensure robustness. Various intermediaries, including market makers and marketing intermediaries, play a crucial role in the t S t t t d i bl enabling the creation and trading of both fungible and non fungible tokens (NFTs). NFTs represent unique assets and can be fractionalized, allowing for more accessible ownership and investment. potential of patent-backed tokens in both primary and secondary markets, paving the way for a more efficient and accessible financial ecosystem. ecosystem. Smart contract design enables automation and security in the STO process, allowing for efficient tokenization of patent assets and opening new investment NFT liquidity is enhanced through DeFi solutions and bonding curves for automatic market making (AMM), ensuring y p g opportunities. smoother transactions.
- 40. NFT based IPMonetization Platform Architecture Auditing Layer Audit IP for finding and analyzing legal status, individual IP’s cash flow generation history, potential financial and legal risks, licensing diversification and strength of market position Audit potential buyer’s or licensee’s KYC, financial credential, conflict of interest and legal status NFT Minting Layer risks, licensing diversification and strength of market position Mint NFTs for representing IP rights (patents, copyrights, trademarks) on a blockchain with storing the original IP data Embed DID (Decentralized Identifiers) based SSI (Self-Sovereign Identity) for a verifiable NFT authenticity that can be used for a NFT creator to verify the authenticity of minted NFT by creating a verifiable credential Layer in a centralized or decentralized storage verify the authenticity of minted NFT by creating a verifiable credential (carried with NFT) that proves NFT creator's identity Securitization Layer Form a securitization pool of IP NFTs considering IP type, portfolio, use cases and monetization potentials; Provide group index and mint NFT-ST Securitization Layer Comply lighter-weight security regulations such as Regulations D, S, or A+ and/or Crowdfunding and/or Regulation A for offering does not exceed $20 million Layer Valuation potentials; Provide group index and mint NFT-ST for representing the securitization pool Layer Regulation A for offering does not exceed $20 million in a 12-month period Value based on experts’ view with consultation of (British/Dutch/ Value based on automatic DeFi price discovery h i A t t d M k t M k (AMM ) Layer Vickrey/SMR/Radical) auction; Value based on IP valuation (income/market/asset) methods mechanism: Automated Market Makers (AMMs) using NFT-backed fungible tokens and arbitrage process Monetize through sales of NFT-ST security tokens; Monetize through IP NFT monetization DAO: Monetization Layer g y ; Monetize through primary/secondary marketplace: in-built smart contract for the NFT should specify any sales/licensing agreement in a legally appropriate way g To encourage active engagement in the monetization DAO, a utility based NFT, where the token acts as a digital passport of the DAO membership is used
- 41. Open Innovation PatentPools for AI, Metaverse, Blockchain, IoT, Sustainability Convergence Open Innovation Patent Pool DAO Open innovation is a strategic approach that fosters collaboration and partnership with external stakeholders to create and implement new technologies products and Utilizing patent pools in open innovation enables the development of new technologies, products, and services through collaborative R&D, access to emerging technologies cost savings and reduced risks Open Innovation Patent Pool DAO An open innovation patent pool, formed and operated as a Decentralized Autonomous Organization (DAO), create and implement new technologies, products, and services. Unlike traditional innovation models confined within company walls, open innovation promotes the sharing and exchange of knowledge resources and expertise across technologies, cost savings, and reduced risks. By sharing patented technologies within specific industries or technology areas, companies can g ( ) leverages blockchain technology to enable transparent, secure, and efficient collaboration among members. In a DAO- based patent pool, the rules and protocols Convergence Open Innovation Opportunity exchange of knowledge, resources, and expertise across organizational boundaries. Patent pool is a collaborative consortium where companies strengthen their current market positions, diversify into related markets, and expand into new markets. based patent pool, the rules and protocols for membership, licensing, revenue sharing, and decision-making are encoded in smart contracts, ensuring trust and autonomy. Convergence Open Innovation Opportunity AI Bl k h i IoT Patent pool is a collaborative consortium where companies share patented technologies within a specific industry or technology area, aiming to streamline the licensing process, minimize transaction costs, and prevent legal disputes Members of the patent pool can propose, vote on, and execute decisions collectively using a decentralized governance model, which eliminates the need for a central IoT AI Patent Pools Blockchain Patent Pools IoT Patent Pools , p g p related to patent infringement. In the context of open innovation, patents are vital as they which eliminates the need for a central authority. The DAO's rules determine how members can join, contribute patents, and access shared patents. Smart contracts f ilit t th li i f t t Convergence opportunities for innovation, growth, and the development of groundbreaking solutions grant legal rights to inventors and protect their inventions. Companies can license-in external patented technology for new capabilities, license-out their patents to foster facilitate the licensing of patents among members, automating the process and reducing transaction costs. across various industries Metaverse Patent Sustainability Patent collaboration and generate revenue, participate in cross- licensing to decrease legal risks and costs, or monetize patents by buying or selling them to enhance their t h l i l t fit f d tili d Revenue sharing can also be managed through smart contracts, ensuring fair and transparent distribution of licensing fees or royalties among patent contributors. Pools Patent Pools technological assets or profit from underutilized resources.