Title: Emerging IP monetisation solutions: the institutionalisation of an IP exchange

Authors: Roya Ghafele; Benjamin Gibert; James Malackowski

Addresses: Oxfirst Ltd., Oxford Science Park, Thomas Eccleston House, Oxford, OX4 4GP, UK. ' Oxfirst Ltd., Oxford Science Park, Thomas Eccleston House, Oxford, OX4 4GP, UK. ' Ocean Tomo, 37th Floor, 200 W. Madison, Chicago, IL 60606, USA

Abstract: This paper examines whether moving licensing from the traditional bilateral contract model to an exchange model will lead to more efficient price discovery and, ultimately, more liquidity in the market for IP rights transfer. Using the recently created Chicago-based Intellectual Property Exchange International (IPXI) as a model, we address the rationale for such an exchange and the mechanisms by which it can operate. We contend that IPXI's business model, which is built around unit licence right (ULR) contracts - which may be seen as a paid-up non-exclusive licence to the purchaser - addresses some of the current inefficiencies in IP management. However, the market efficiency that is needed to turn IP rights into a liquid asset inevitably takes time to evolve. Without community support for and participation in the exchange, from both buyers and sellers, the market cannot be established.

Keywords: intellectual property finance; liquidity; intellectual property markets; intellectual property monetisation; valuation; unit licence rights; ULR contracts; market transparency; intellectual property price discovery; emerging asset classes; pricing mechanisms; bilateral contract model; exchange model; efficient price discovery; IP rights transfer; IP management.

DOI: 10.1504/IJIPM.2012.047483

International Journal of Intellectual Property Management, 2012 Vol.5 No.2, pp.115 - 133

Received: 31 Jan 2011
Accepted: 25 Oct 2011
Published online: 31 Jul 2014 *

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