In today’s knowledge-driven economy, Intellectual Property (IP) assets such as patents, trademarks, copyrights, and trade secrets, have become one of the most valuable assets of many companies. As the importance of IP has grown, so has the need for innovative ways to monetize these assets. One such method is the indirect securitization of IP through a trust or a company.
Indirect Intellectual Property Securitization (IPS) is a financial process where IP assets are bundled together and sold to a trust or a company known as a Special Purpose Vehicle (SPV). The SPV, in turn, issues securities backed by these IP assets and sells them to investors. The cash flow generated from these IP assets, such as royalties or licensing fees, is then used to pay the investors. This way, companies can generate liquidity from their IP assets without surrendering their ownership.
