SYSTEM AND METHOD FOR FORMING A FINANCIAL INSTRUMENT INDEXED TO ENTERTAINMENT REVENUE

• US 20120016791A1
• Filed: 09/26/2011
• Published: 01/19/2012
• Est. Priority Date: 01/16/2004
• Status: Abandoned Application

• Current Assignee: Howard Lutnick, Joseph M. Asher
• Original Assignee: Howard Lutnick, Joseph M. Asher
• Inventors: ASHER, JOSEPH M., Lutnick, Howard W.
• Application Number:
  US13/245,142
• Publication Number:
  US 20120016791A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• 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

Abstract

A method for forming a securities bundle indexed to entertainment revenue includes determining a first funding amount for a first entertainment event. A second funding amount is determined for a second entertainment event. Next, a dividend schedule is determined for the first and second entertainment events. A securities bundle is formed at least partially based on the funding amounts and the dividend schedule, with the securities bundle comprising a first security and a second security. The first security is associated with the first entertainment event and the second security is associated with the second entertainment event.

Claims

1. A method comprising:

providing, by a computing device, an interface through which a seller may submit information regarding one or more derivative contracts related to one or more respective rights in one or more respective revenues of one or more respective entertainment events produced by one or more respective entertainment companies;

receiving, from the seller by the computing device, an indication of a first derivative contract that grants a holder of the first derivative contract a right to a first payment from a first entertainment company when a first period of time has ended, in which the payment includes a portion of a revenue earned by a first entertainment event produced by the first entertainment company during at least a portion of the first period of time, in which the first derivative contract does not grant an equity right in the first entertainment company to the holder;

presenting, by the computing device, an indication of the first derivative contract to a plurality of potential buyers, in which the indication identifies the first period of time, the first entertainment event, and the portion of the revenue;

receiving, from a buyer by the computing device, a bid to buy the first derivative contract for a first price;

in response to receiving the indication and the bid, facilitating, by the computing device, an exchange of the first derivative contract between the buyer and the seller; and

facilitating a provision of the first payment to the buyer from the first entertainment company when the first period of time has ended.

2. The method of claim 1, in which facilitating the provision is part of a settlement of the first derivative contract.

3. The method of claim 1, in which the first payment is made to the buyer by a device other than the computing device.

4. The method of claim 1, in which at least one of the bid and the offer is received before a start of the first amount of time.

5. The method of claim 1, in which the first derivative contract grants the holder a plurality of rights to a plurality of respective payments at a plurality of respective dates.

6. The method of claim 5, in which at least one of the plurality of respective dates includes a date relative to at least one of a consideration of the first entertainment event for an award and a reduction in a number of venues for the first entertainment event.

7. The method of claim 1, in which the first entertainment company comprises a movie studio and the first entertainment event comprises a movie.

8. The method of claim 1, in which the first entertainment company comprises a music production company and the first entertainment event comprises a music release.

9. The method of claim 1, in which the first entertainment company comprises a promoter and the first entertainment event comprises a concert.

10. The method of claim 1, in which the revenue includes a primary source of revenue related to the first entertainment event.

11. The method of claim 10, in which the first entertainment event includes a movie, and the primary source of revenue is related to ticket sales.

12. The method of claim 1, in which the revenue includes a secondary source of revenue related to the first entertainment event.

13. The method of claim 12, in which the first entertainment event includes a movie, and the secondary source of revenue includes at least one of video and DVD sales of the movie, television revenue for the movie, merchandising revenue for the movie, and licensing revenue for the movie.

14. The method of claim 1, in which the right to the payment based on the revenue includes a right to a payment if the first entertainment event earns a threshold amount of money by the end of the amount of time.

15. The method of claim 1, in which the right to the payment based on the revenue includes a right to a payment if the first entertainment event earns a threshold amount of money during the amount of time.

16. The method of claim 1, in which the right to the payment based on the revenue includes a right to a payment based on which of a plurality of possible threshold amounts of money the first entertainment event earns.

17. The method of claim 1, in which the right to the payment includes a right to a payment if the first entertainment event does not earn a threshold amount of money by the end of the amount of time.

18. The method of claim 1, in which the right to the payment includes a right to a payment if the first entertainment event does not earn a threshold amount of money during the amount of time.

19. The method of claim 1, in which the first period of time is related to a premier date of the entertainment event.

20. The method of claim 1, in which the first entertainment event includes a movie, and the revenue include box office receipts.

21. The method of claim 1, in which the first derivative contract is associated with a dividend schedule for the first entertainment event, in which the dividend schedule includes at least one of a date relative to consideration for an award for at least one of the first entertainment event and a date relative to a reduction to a number of venues in which at least one of the first entertainment event remains available.

22. The method of claim 1, further comprising facilitating provision of a non-financial dividend to the holder.

23. The method of claim 22, in which the first entertainment event is associated with a movie and the non-financial dividend comprises at least one of:

a screening opportunity of the movie;

preferred seating at a viewing of the movie;

attendance at a premiere of the movie; and

on-set visitation during production of the movie.

24. The method of claim 1, further comprising:

bundling the first derivative contract with a second derivative contract, in which the second derivative contract grants a holder of the second derivative contract a right to a second payment from a second entertainment company when a second period of time has ended, in which the second payment includes a portion of a revenue earned by a second entertainment event; and

in which the exchange includes an exchange of the bundle of the first and second derivative contracts.

25. An apparatus comprising:

a machine readable medium having stored thereon a set of instructions that when executed by a computing device causes the computing device to perform a method comprising;

providing, by a computing device, an interface through which a seller may submit information regarding one or more derivative contracts related to one or more respective rights in one or more respective revenues of one or more respective entertainment events produced by one or more respective entertainment companies;

receiving, from the seller by the computing device, an indication of a first derivative contract that grants a holder of the first derivative contract a right to a first payment from a first entertainment company when a first period of time has ended, in which the payment includes a portion of a revenue earned by a first entertainment event produced by the first entertainment company during at least a portion of the first period of time, in which the first derivative contract does not grant an equity right in the first entertainment company to the holder;

presenting, by the computing device, an indication of the first derivative contract to a plurality of potential buyers, in which the indication identifies the first period of time, the first entertainment event, and the portion of the revenue;

receiving, from a buyer by the computing device, a bid to buy the first derivative contract for a first price;

in response to receiving the indication and the bid, facilitating, by the computing device, an exchange of the first derivative contract between the buyer and the seller; and

facilitating a provision of the first payment to the buyer from the first entertainment company when the first period of time has ended.

26. The apparatus of claim 25, further comprising the computing device.