System and method for purchasing a financial instrument indexed to entertainment revenue

• US 8,504,454 B2
• Filed: 02/12/2010
• Issued: 08/06/2013
• Est. Priority Date: 01/16/2004
• Status: Active Grant

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Asher, Joseph M., Lutnick, Howard W.
• Primary Examiner(s): Apple, Kirsten
• Application Number:
  US12/705,059
• Publication Number:
  US 20100179903A1
• Time in Patent Office: 1,271 Days
• Field of Search: 705/35
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• 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 purchasing a securities bundle indexed to entertainment revenue comprises selecting a securities bundle offered by a special-purpose entity. The securities bundle comprises a first security and a second security and the securities bundle is associated with a closing date. The first security is associated with a first entertainment event and the second security is associated with a second entertainment event. The method continues by identifying a return value associated with the securities bundle, and by identifying a purchase price associated with the securities bundle. The method concludes by purchasing the selected securities bundle at least partially based on the purchase price and the return value.

Claims

1. A method for selling a derivative, the method comprising:

identifying, by a processor of a computer system, a securities bundle, in which the securities bundle comprises a first security and a second security, in which the first security is associated with a first entertainment event and a first schedule of dividend dates;

unbundling the first security from the securities bundle;

transmitting, by the processor of the machine, an offering for sale of the first security; and

transmitting, by the processor of the machine, an offering for sale of at least one derivative based on at least one source of revenue associated with the first entertainment event to at least one remote computer system.

2. The method of claim 1, in which the at least one derivative includes at least one of an options contract and a futures contract.

3. The method of claim 1, in which the first schedule of dividend dates includes a date relative to consideration for an award for the first entertainment event.

4. The method of claim 1, in which the first schedule of dividend dates includes a date relative to a reduction to a number of venues in which the first entertainment event remains available.

5. The method of claim 1, in which the first entertainment event is associated with an entertainment company.

6. The method of claim 5, in which the entertainment company comprises a movie studio and the first entertainment event comprises a movie.

7. The method of claim 5, in which the entertainment company comprises a music production company and the first entertainment event comprises a music release.

8. The method of claim 5, in which the entertainment company comprises a promoter and the first entertainment event comprises a concert.

9. The method of claim 1, in which the derivative entitles a holder of the derivative to a payment amount for each revenue threshold related to the at least one source of revenue met by the first entertainment event.

10. The method of claim 1, in which the first security is associated with a first dividend rate relative to a primary revenue source and a different dividend rate relative to a secondary revenue source.

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

12. The method of claim 11, in which the secondary source of revenue includes video and DVD sales of the movie.

13. The method of claim 11, in which the secondary source of revenue includes televisions revenue for the movie.

14. The method of claim 11, in which the secondary source of revenue includes merchandising revenue for the movie.

15. The method of claim 11, in which the secondary source of revenue includes licensing revenue for the movie.

16. The method of claim 11, in which the ticket sales include domestic ticket sales for the movie and the secondary source of revenue includes international ticket sales for the movie.

17. The method of claim 1, in which the derivative includes an agreement to purchase at a fixed price, a right to receive a payment associated with a date relative to the at least one source of revenue.

18. The method of claim 1, in which the derivative includes an agreement to transfer ownership of the first security at a fixed price at a particular future date.

19. The method of claim 1, in which the derivative includes an agreement associated with a payment if the first entertainment event earns a threshold amount of money by a threshold date.

20. The method of claim 1, in which the derivative includes an agreement associated with a payment if the first entertainment event does not earn a threshold amount of money by a threshold date.

21. The method of claim 1, further comprising selling the first security to a purchaser as an investment and selling the derivative to the purchaser as a hedge to the investment.

22. A system comprising:

a memory having stored thereon a plurality of instructions that when executed by a processor causes the processor to perform a method comprising;

identifying a securities bundle, in which the securities bundle comprises a first security and a second security, in which the first security is associated with a first entertainment event and a first schedule of dividend dates;

unbundling the first security from the securities bundle;

offering for sale the first security; and

offering for sale at least one derivative based on at least one source of revenue associated with the first entertainment event.

23. The system of claim 22, in which the at least one derivative includes at least one of an options contract and a futures contract.

24. The system of claim 22, in which the first schedule of dividend dates includes a date relative to consideration for an award for the first entertainment event.

25. The system of claim 22, in which the first schedule of dividend dates includes a date relative to a reduction to a number of venues in which the first entertainment event remains available.

26. The system of claim 22, in which the first entertainment event is associated with an entertainment company.

27. The system of claim 26, in which the entertainment company comprises a movie studio and the first entertainment event comprises a movie.

28. The system of claim 26, in which the entertainment company comprises a music production company and the first entertainment event comprises a music release.

29. The system of claim 26, in which the entertainment company comprises a promoter and the first entertainment event comprises a concert.

30. The system of claim 22, in which the derivative entitles a holder of the derivative to a payment amount for each revenue threshold related to the at least one source of revenue met by the first entertainment event.

31. The system of claim 22, in which the first security is associated with a first dividend rate relative to a primary revenue source and a different dividend rate relative to a secondary revenue source.

32. The system of claim 31, in which the first entertainment event includes a movie and the primary source of revenue includes ticket sales.

33. The system of claim 32, in which the secondary source of revenue includes video and DVD sales of the movie.

34. The system of claim 32, in which the secondary source of revenue includes televisions revenue for the movie.

35. The system of claim 32, in which the secondary source of revenue includes merchandising revenue for the movie.

36. The system of claim 32, in which the secondary source of revenue includes licensing revenue for the movie.

37. The system of claim 32, in which the ticket sales include domestic ticket sales for the movie and the secondary source of revenue includes international ticket sales for the movie.

38. The system of claim 22, in which the derivative includes an agreement to purchase at a fixed price, a right to receive a payment associated with a date relative to the at least one source of revenue.

39. The system of claim 22, in which the derivative includes an agreement to transfer ownership of the first security at a fixed price at a particular future date.

40. The system of claim 22, in which the derivative includes an agreement associated with a payment if the first entertainment event earns a threshold amount of money by a threshold date.

41. The system of claim 22, in which the derivative includes an agreement associated with a payment if the first entertainment event does not earn a threshold amount of money by a threshold date.

42. The method of claim 22, in which the method further comprises selling the first security to a purchaser as an investment and selling the derivative to the purchaser as a hedge to the investment.