System and method for transactions relating to intellectual property securities
View Patent ↗A distributed networked computer system and methods for managing securitization of intellectual property assets wherein investors are paid from the revenue stream associated with the intellectual property as the revenues are received.
1 . A distributed network computer system for smart contract execution of transactions for securitized intellectual property assets, the distributed network computer system comprising:
a distributed ledger associated with a plurality of users of the system;
a securities planning module, an administrative module, and financial transactions module, each implemented as a distinct component configured to interact with the distributed ledger;
one or more processors; and
one or more memories operatively coupled to at least one of the one or more processors and having instructions stored thereon that, when executed by at least one of the one or more processors, cause:
the securities planning module to determine a structure of an intellectual property-backed security (“IPBS”) offering, wherein the confidential structuring of the IPBS offering involves modeling and evaluating variables, and further wherein the intellectual property is selected from the group consisting of a motion picture, work of authorship, songs, or a combination thereof,
the administration module to transmit the IPBS offering to one or more networked nodes of a plurality of nodes associated with the plurality of users and to receive one or more bids for one or more shares of the IPBS offering from one or more investors among the plurality of users;
and
the financial transactions module to process payments for the shares of IPBS to execute a transaction and transmit transaction-related information to the distributed ledger;
wherein the transaction-related information comprises compiled code corresponding to a smart contract, each smart contract comprising immutable self-executing code configured to automatically detect and respond to specific, predefined revenue stream payout events, and wherein execution of the smart contracts is immutably recorded on the distributed ledger, providing an auditable and tamper-resistant record.
2 . The distributed network computer system of claim 1 , wherein the payout triggering event is based on revenue associated with monetization of one of the one or more intellectual property assets.
3 . The distributed network computer system of claim 2 , wherein the payout triggering event comprises a first threshold that occurs when monetization of one of the one or more intellectual property assets exceeds total expenses associated with producing the one of the one or more intellectual property assets.
4 . The distributed network computer system of claim 3 , wherein only some of the smart contracts are executed to distribute a payout when the first threshold is met.
5 . The distributed network computer system of claim 2 , wherein the one of the one or more intellectual property assets is a movie production, and further wherein the monetization comprises distribution of the movie.
6 . The distributed network computer system of claim 2 , wherein the monetization comprises sale of production rights or publishing rights to the work of authorship.
7 . The distributed network computer system of claim 1 , wherein the payout is a portion of a royalty associated with one of the one or more intellectual property assets.
8 . At least one non-transitory computer-readable medium storing computer-readable instructions for smart contract execution of transactions for securitized intellectual property assets that, when executed by one or more computing devices of a distributed network computer system, cause:
a securities planning module to determine a structure of an intellectual property-backed security (“IPBS”) offering, wherein the intellectual property is selected from the group consisting of a motion picture, work of authorship, song, or a combination thereof, and the activities to define the structure of the IPBS offering are confidentially protected within the system so as not to be accessible to certain individuals, transmit the structure of the IPBS offering to an administration module;
the administration module to transmit the IPBS offering to one or more networked nodes of a plurality of nodes associated with a plurality of users associated with a distributed ledger, the administration module configured to receive one or more bids for one or more shares of the IPBS offering from one or more investors among the plurality of users;
and
transmit instructions to a financial transactions module to process payments for one or more shares of IPBS to execute a transaction;
transmit transaction-related information to the distributed ledger wherein the transaction-related information comprises immutable self-executing code defining a smart contract to:
generate sets of terms and conditions based on the structure of the IPBS offering and the shares of the IPBS allocated to each respective investor;
detect a revenue stream payout triggering event relating to the generated sets of terms and conditions associated with each respective investor;
automatically in response to the triggering event, transmitting instructions to the financial transactions module to effect a payout to the one or more investors based on the terms and conditions of the smart contract, wherein the securities planning module, administration module and financial transactions module are each implemented as a distinct component, each configured to interact with the distributed ledger and the IPBS offering involves modeling and evaluating variables to provide a confidential structuring.
9 . The at least one non-transitory computer-readable medium of claim 8 , wherein the payout triggering event is based on revenue associated with monetization of one of the one or more intellectual property assets.
10 . The at least one non-transitory computer-readable medium of claim 9 , wherein the payout triggering event comprises a first threshold that occurs when monetization of one of the one or more intellectual property assets exceeds total expenses associated with producing the one of the one or more intellectual property assets.
11 . The at least one non-transitory computer-readable medium of claim 10 , wherein only some of the smart contracts are executed to distribute a payout when the first threshold is met.
12 . The at least one non-transitory computer-readable medium of claim 9 , wherein the one of the one or more intellectual property assets is a movie production, and further wherein the monetization comprises distribution of the movie.
13 . The at least one non-transitory computer-readable medium of claim 9 , wherein the one of the one or more intellectual property assets is a work of authorship, and further wherein the monetization comprises sale of production rights or publishing rights to the work of authorship.
14 . The at least one non-transitory computer-readable medium of claim 8 , wherein the payout is a portion of a royalty associated with one of the one or more intellectual property assets.
15 . A method executed by one or more computing devices for smart contract execution of transactions for securitized intellectual property assets on a distributed network computer system, the method comprising:
defining, by a securities planning module implemented as a distinct component, a structure of an intellectual property-backed security (“IPBS”) offering, wherein the confidential structuring of the IPBS offering involves modeling and evaluating variables;
transmitting the defined structure of the IPBS offering to an administration module implemented as a distinct component configured to interact with the distributed ledger, wherein
the administration module transmit ting the IPBS offering to one or more networked nodes of a plurality of nodes associated with a plurality of users of a distributed ledger and
receiving one or more bids for one or more shares of the IPBS offering from one or more investors among the plurality of users;
transmitting instructions to a financial transactions module implemented as a distinct component configured to interact with the distributed ledger to process payments from the one or more investors and disburse payments to a seller of the shares of the IPBS to execute a transaction;
transmitting transaction-related information, the transaction-related information comprising compiled code corresponding to a smart contract, each smart contract comprising immutable self-executing code configured to automatically detect and respond to specific, predefined revenue stream payout events, and wherein execution of the smart contracts is immutably recorded on the distributed ledger, providing an auditable and tamper-resistant record.
16 . The method of claim 15 , wherein the payout triggering event is based on revenue associated with monetization of one of the one or more intellectual property assets.
17 . The method of claim 16 , wherein the payout triggering event comprises a first threshold that occurs when monetization of one of the one or more intellectual property assets exceeds total expenses associated with producing the one of the one or more intellectual property assets.
18 . The method of claim 17 , wherein only some of the smart contracts are executed to distribute a payout when the first threshold is met.
19 . The method of claim 16 , wherein the one of the one or more intellectual property assets is a movie production, and further wherein the monetization comprises distribution of the movie.
20 . The method of claim 16 , wherein the one of the one or more intellectual property assets is a work of authorship, and further wherein the monetization comprises sale of production rights or publishing rights to the work of authorship.
21 . The method of claim 15 , wherein the payout is a portion of a royalty associated with one of the one or more intellectual property assets.