Method of repeatedly securitizing intellectual property assets and facilitating investments therein

• US 20010042034A1
• Filed: 01/11/2001
• Published: 11/15/2001
• Est. Priority Date: 01/11/2000
• Status: Active Grant

• Current Assignee: TEQ Development
• Original Assignee: TEQ Development
• Inventors: Elliott, Douglas R.
• Granted Patent: US 7,228,288 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06Q 50/184 Intellectual property management
• CPC Class Codes: Y10S 707/99933 Query processing, i.e. searching

Abstract

The present invention relates to methods of repeatedly valuing intellectual property assets and securitizing such assets. The present invention provides a means whereby holders or owners of proprietary intellectual property may readily determine the value to the business of the securitization of their intellectual property estate and obtain capital by securitizing all or part of their intellectual property estate.

Claims

1. A method comprising:

a) defining a plurality of investor accounts;

b) obtaining an initial amount from each of a plurality of initial investors;

c) associating said initial amount from each of said plurality of initial investors with a respective one of said plurality of investor accounts;

d) defining at least one general trust account not associated with any specific investor;

e) associating at least a portion of said initial amounts received from said plurality of initial investors with said general trust account;

f) identifying the initial ownership of an intellectual property;

g) determining a value to assign to said intellectual property;

h) paying an amount to said initial ownership of said intellectual property from said general trust account upon the transfer of title to said intellectual property to a subsequent owner;

i) obtaining at least one payment from said initial ownership of said intellectual property for a license to use said intellectual property;

j) allocating said at least one payment from said initial ownership to said general trust account;

k) allocating payments from said general trust account to at least one of said initial investor accounts;

l) obtaining additional investment amount from one or more subsequent investors;

m) associating said additional investment amount from each of said at least one subsequent investors with a respective one of said plurality of investor accounts,

n) associating at least a portion of the amounts in said investor accounts with said general trust account;

o) identifying the initial ownership of a subsequent intellectual property;

p) determining a value to assign to said subsequent intellectual property;

q) paying an amount to said initial ownership of said subsequent intellectual property from said general trust account upon the transfer of title to said subsequent intellectual property to a subsequent owner;

r) obtaining at least one payment from said initial ownership of said subsequent intellectual property for a license to use said subsequent intellectual property;

s) allocating said at least one payment from said initial ownership of said subsequent intellectual property to said general trust account; and

t) allocating payments from said general trust account to at least one of said subsequent investor accounts.

2. The method of

claim 1

further comprising allocating payments from said general trust account to at least one account other than an investor account.

3. The method of

claim 1

further comprising granting a limited license to a party other than the original owner of said intellectual property and obtaining at least one payment from said licensee of said intellectual property for a license to use said intellectual property.

4. The method of

claim 1

further comprising allocating payments to said investor accounts based on a formula that considers factors in addition to the initial amount obtained from said investor.

5. The method of

claim 1

wherein at least one subsequent investor and at least one initial investor are identical.

6. The method of

claim 1

wherein at least one subsequent investor is different from the at least one initial investor.

7. A method comprising:

a) identifying an intellectual property in use by at least an initial user;

b) identifying the initial ownership of said intellectual property;

c) assessing the value of said intellectual property based, at least in part, on the anticipated future use of said intellectual property by said initial user;

d) paying, in at least one payment, an amount related to the assessed value of said intellectual property to said initial owner in exchange for transfer of the title to said intellectual property to a subsequent owner;

e) obtaining the amount paid for transfer of title from a general trust account;

f) funding said general trust account from a plurality of investor accounts;

g) granting a license to said initial user for the use of said intellectual property from said subsequent owner in exchange for an agreement by said initial user to make at least one payment;

h) collecting said at least one payment from said initial user;

i) depositing said at least one payment from said initial user into said general trust account;

j) allocating to at least one of said plurality of investor accounts a portion of said at least one payment from said initial user in said general trust account;

k) identifying at least one additional intellectual property in use by at least an initial user;

l) identifying the initial ownership of said at least one additional intellectual property;

m) assessing the value of said at least one additional intellectual property based, at least in part, on the anticipated future use of said at least one additional intellectual property by said initial user;

n) paying, in at least one payment, an amount related to the assessed value of said at least one additional intellectual property to said initial owner in exchange for transfer of the title to said at least one additional intellectual property to a subsequent owner;

o) obtaining the amount paid for transfer of title from said general trust account;

p) funding said general trust account from at least one subsequent investor account;

q) granting a license to said initial user for the use of said at least one additional intellectual property from said subsequent owner in exchange for an agreement by said initial user to make at least one payment;

r) collecting said at least one payment from said initial user of said at least one additional intellectual property;

s) depositing said at least one payment from said initial user into said general trust account; and

t) allocating to at least one of said subsequent investor accounts a portion of said at least one payment from said initial user in said general trust account.

8. The method of

claim 7

further comprising granting a limited license to a party other than the original user of said intellectual property and obtaining at least one payment from said licensee of said intellectual property for a license to use said intellectual property.

9. The method of

claim 7

further comprising allocating payments from said general trust account to at least one account other than an investor account.

10. The method of

claim 7

further comprising allocating payments to said investor accounts based on a formula that considers factors in addition to the initial amount obtained from said investor.

11. The method of

claim 7

wherein at least one subsequent investor account and at least one initial investor account are identical.

12. A method comprising:

a) identifying an intellectual property;

b) identifying initial ownership of said intellectual property;

c) assessing a value for said intellectual property;

d) obtaining title to said intellectual property in exchange for paying not more than the assessed value of said intellectual property to said initial ownership;

<

d1>

obtaining said payment to the initial ownership from a general trust account;

<

d2>

obtaining funding for said general trust account from a plurality of initial investor accounts;

e) creating said investor accounts by identifying a plurality of investors, obtaining an initial amount from each of said investors and associating at least a portion of said initial amount with at least one investor account for each said investor;

f) granting a license to said initial ownership to use said intellectual property in exchange for at least one payment from said initial ownership;

g) allocating said at least one payment from said initial ownership to said general trust account;

h) allocating payments from said general trust account to at least one of said investor accounts;

i) identifying at least one other intellectual property;

j) identifying initial ownership of said at least one other intellectual property;

k) assessing a value for said at least one other intellectual property;

l) obtaining title to said at least one other intellectual property in exchange for paying not more than the assessed value of said at least one other intellectual property to said initial ownership;

<

l1>

obtaining said payment to the initial ownership from a general trust account;

<

l2>

obtaining funding for said general trust account from at least one subsequent investor account;

m) creating said subsequent investor accounts by identifying a plurality of investors, obtaining an initial amount from each of said subsequent investors and associating at least a portion of said initial amount with said investor account for each said subsequent investor;

n) granting a license to said initial ownership to use said intellectual property in exchange for at least one payment from said initial ownership;

o) allocating said at least one payment from said original ownership to said general trust account;

p) allocating payments from said general trust account to at least one of said subsequent investor accounts.

13. The method of

claim 12

further comprising granting a limited license to a party other than the original user of said intellectual property and obtaining at least one payment from said licensee of said intellectual property for a license to use said intellectual property.

14. The method of

claim 12

further comprising allocating payments from said general trust account to at least one account other than an investor account.

15. The method of

claim 12

further comprising allocating payments to said investor accounts based on a formula that considers factors in addition to the initial amount obtained from said investor.

16. The method of

claim 12

wherein at least one subsequent investor account and at least one initial investor account are identical.

17. The method of

claim 12

wherein the subsequent investor accounts are different from the at least one initial investor account.

18. A method comprising:

a) entering information related to at least one intellectual property;

b) calculating a value of said at least one intellectual property using a first valuation algorithm;

c) selecting a second valuation algorithm having a plurality of inputs;

d) inputting the value of said at least one intellectual property into said second valuation algorithm;

e) inputting at least one additional piece of information required by said second valuation algorithm;

f) calculating the change in value of the owner of said at least one intellectual property using the second valuation algorithm;

g) entering information related to at least one additional intellectual property;

h) calculating a value of said at least one additional intellectual property using a first valuation algorithm;

i) selecting a second valuation algorithm having a plurality of inputs;

j) inputting the value of said at least one additional intellectual property into said second valuation algorithm;

k) inputting at least one additional piece of information required by said second valuation algorithm; and

l) calculating the change in value of the owner of said at least one additional intellectual property using the second valuation algorithm;

19. A method according to

claim 18

further comprising entering a value describing the utility of said at least one intellectual property that comprises selecting from a list including, but not limited to values of new product category, improvement on existing product, new process, improvement on existing process, and regulatory compliance.

20. A method according to

claim 18

wherein said step of selecting a first valuation algorithm is particular to the type of utility value associated with said intellectual property.

21. A method according to

claim 18

wherein said step of entering information related to said intellectual property further comprises entering information on the financial characteristics of the an owner.

22. A method according to

claim 18

wherein said step of calculating a value of said intellectual property using said first valuation algorithm further comprises determining the value of the owner with said intellectual property and without said intellectual property.

23. A method according to

claim 18

further comprising determining the current value to the owner of said intellectual property using the second valuation algorithm.

24. A data processing system for managing the transfer and allocation of monetary funds between a portfolio of investor accounts held by more than one investor, a general trust account, and a portfolio of at least two intellectual properties, the system comprising:

a) a data recording system comprising at least one data recording device;

b) creating in the data recording system a unique account for each respective investor account;

c) creating in the data recording system at least one general trust account not associated with a specific investor;

d) indicating in the data recording system that a predetermined quantity of the funds from said general trust account are transferred to the initial owner of a specific one intellectual property of said at least two intellectual properties in exchange for title to said specific one intellectual property being transferred to a subsequent owner;

e) indicating in the data recording system a grant back to said initial owner of a license to said specific one intellectual property of said at least two intellectual properties;

f) recording in the data recording system the licensing agreement entered into with respect to each specific intellectual property and the amount of the at least one royalty payment to be received from the licensee and the date each payment is due;

g) indicating in the data recording system that at least one payment is made from the an initial owner into said general trust account;

h) allocating in the data recording system payments from said general trust account to at least one said investor account; and

i) deducting in the data recording system each payment to said at least one investor account from said general trust account.

25. The system of

claim 24

further comprising computer processor means for processing data;

and wherein the data recording system is a data disk operatively connected to the computer processor means.

26. The system of

claim 24

further comprising computer processor means for processing data;

and wherein the data recording system is a data disk operatively connected to the computer processor means; and

the system further comprises means for processing on the data recording system data regarding the transfer and allocation of monetary funds between the investor accounts, general trust account, and the portfolio of at least two intellectual properties.

27. The system of

claim 24

further comprising computer processor means for processing data;

and wherein the data recording system is a data disk operatively connected to the computer processor means; and

the system further comprises means for initializing the data recording system to magnetically store selected data regarding the crediting and transfer of funds and payments to and from the investor accounts, general trust account, and the portfolio of at least two intellectual properties.

28. The system of

claim 24

wherein the data recording system comprises at least one sheet of paper and means for transcribing data thereon.

29. The system of

claim 24

wherein the license to a specific one intellectual property is an exclusive right to use the intellectual property for the term of the respective license agreement.

30. The system of

claim 24

wherein the predetermined quantity of the funds represents the future value of the portfolio of at least two intellectual properties discounted by a predetermined interest rate applied over a period time extending to the time at which the future value is represented.

31. The system of

claim 24

wherein the portfolio of intellectual properties further comprises at least one security instrument.

32. The system of

claim 24

wherein the portfolio of intellectual properties further comprises a money market account.

33. The system of

claim 24

wherein the portfolio of at least two intellectual properties comprises at least a low risk portion of the portfolio and a high risk portion of the portfolio;

and the system further comprises recording an allocation, selected by each respective investor, of funds from the respective investor between the low risk portion of the portfolio and the high risk portion of the portfolio.

34. A data processing system for managing the transfer and allocation of monetary funds between a portfolio of investor accounts held by more than one investor, a general trust account, and a portfolio of at least two intellectual properties, the system comprising:

a) a computer processor device for processing data;

b) a storage device operatively connected to the computer processor device for storing data;

c) creating in the storage device a unique account for each respective investor account;

d) creating in the storage device at least one general trust account not associated with a specific investor;

e) indicating in the storage device that a predetermined quantity of the funds from said general trust account are transferred to the initial owner of a specific one intellectual property of said at least two intellectual properties in exchange for title to said specific one intellectual property being transferred to a subsequent owner;

f) indicating in the storage device a grant back to said initial owner of a license to said specific one intellectual property of said at least two intellectual properties;

g) recording in the storage device the licensing agreement entered into with respect to each specific intellectual property and the amount of the at least one royalty payment to be received from the licensee and the date each payment is due;

h) indicating in the storage device that at least one payment is made from the licensee into said general trust account;

i) allocating in the storage device payments from said general trust account to at least one said investor account; and

j) deducting in the storage device each payment to said at least one investor account from said general trust account.

35. The system of

claim 34

wherein the storage device is a data disk.

36. The system of

claim 34

wherein the system further comprises means for processing on the storage device data regarding the transfer and allocation of monetary funds between said portfolio of investor accounts, said portfolio of at least two intellectual properties, and said general trust account.

37. The system of

claim 34

further comprising means for initializing the storage device to magnetically store selected data regarding the crediting and transfer of funds and payments to and from said portfolio of investor accounts, said portfolio of at least two intellectual properties, and said general trust account.

38. The system of

claim 34

wherein the licensing agreement for a respective intellectual property is an exclusive right to use the respective intellectual property for the term of the licensing agreement.

39. The system of

claim 34

wherein the predetermined quantity of the funds represents the future value of the portfolio of at least one of the at least two intellectual properties discounted by a predetermined interest rate applied over a period of time extending to the time at which the future value is represented.

40. The system of

claim 34

wherein the portfolio of intellectual properties further comprises at least one security instrument.

41. The system of

claim 34

wherein the portfolio of intellectual properties further comprises a money market account.

42. The system of

claim 34

wherein the portfolio of at least two intellectual properties comprises at least a low risk portion of the portfolio and a high risk portion of the portfolio;

and the system further comprises storage an allocation, selected by each respective investor, of funds from the respective investor between the low risk portion of the portfolio and the high risk portion of the portfolio.

43. A method for managing a plurality of financial transactions involving securitized intellectual property comprising, for each said financial transaction, generating a securitized transaction record when a particular intellectual property portfolio is securitized, and including in said securitization transaction record:

a) an indicator of the intellectual property portfolio being securitized;

b) an indicator identifying one or more investors participating in the securitizing transaction;

c) an indicator of the amount paid for the intellectual property portfolio securitized;

d) an indicator of the rights granted back to the initial owner of the intellectual property portfolio being securitized;

e) an indicator of the payment obligation of the intitial owner of the intellectual property portfolio being securitized; and

f) an indicator of the allocation of such payments to said one or more investors in said particular securitization transaction.