Utilities of tokenised IP & IP Rights
Real world assets: IP & IP rights and their utility
Undercollaterlized lending and borrowing: A massive pool will be setup with all the game devs ip values constituting an overall value to the system itself of Acxyn. The $XYN token will be what represents this. Loans are available for devs to grow their games and communities, with GGV scores determining creditworthiness. Market Makers can also borrow Acxyn for arbitrage, boosting its value and supporting future game development.
Purchase/sale of IP assets: Acxyn streamlines IP valuation for both standalone assets and M&A, crucial for informed negotiations and financial reporting. As a mediator, Acxyn simplifies this process with NFTs and on-chain technology, enabling game devs and investors to buy IP assets or collaborate, enhancing overall value.
Licensing: IP valuation is essential in licensing negotiations to determine fair royalty rates, driving significant profits with minimal costs. Acxyn, backed by strict legal representation, assists game devs with license issuance, IP asset propagation, and transaction negotiations, ensuring a smooth process.
Asset-backed financing or securitization: IP assets can secure debt financing as collateral or through securitizing stable revenue streams for immediate funding. Acxyn offers an indexed asset platform for game devs, using its native token for all transactions, while acting as a secured creditor in the borrowing and lending process.
IP litigation: Valuation is vital throughout dispute resolution, guiding decisions on litigation and assisting in calculating damages for infringement. Acxyn, in partnership with its legal teams, shoulders the responsibility of pursuing legal action for game dev teams when required.
Bankruptcy and liquidation: In bankruptcy or liquidation scenarios, valuation is crucial for asset sales and solvency analysis. Acxyn ensures protocol health by conducting comprehensive audits, safeguarding participants from risks associated with under-collateralized loans.
Compliance: IP valuation is vital for regulatory and compliance purposes, such as financial accounting or tax planning. A notable example involves Michael Jackson's estate dispute with the IRS, where the value of his brand was central to the case. The court ultimately assessed Jackson's IP value at $4 million, considering licensing agreements and generated revenues, highlighting the importance of accurate IP valuation.
Internal decision-making and portfolio management: Valuation methods play a crucial role in internal management and investment decisions, guiding choices related to the utilization, sale, abandonment, development, or maintenance of a business's IP assets.
Companies sometimes publish patent scorecards and rankings based on intellectual property strengths, offering insights into intangible asset value and potential competitive advantages. The GGV score will be instrumental in determining game developers' IP worth, guiding decision-making in the Acxyn ecosystem.
Co-development partnerships offer a strategic approach to creating intellectual property, distributing risk, and combining resources to achieve shared goals. A comprehensive agreement should outline the partnership scope, success criteria, sublicensing rights, liability issues, and incentives, while minimizing legal risks.
Defining IP ownership during the partnership is crucial to avoid disputes, with fair remuneration for assigned IP rights. The development, protection, and licensing of intangible assets depend on the industry and business climate.
Acxyn, as a game developer-focused platform, aims to empower developers to succeed, retain value, monetize their IP, and accrue value through the Acxyn token.
The global nature of businesses and industry convergence increasingly make licensing of intellectual property assets a lucrative strategy for establishing and retaining market advantage.
Licensing agreements allow for mutually beneficial outcomes between competitors, providing flexibility in determining the scope of permitted use. These agreements should be tailored to match parties' expectations and needs, ensuring reasonable limitations on both licensors and licensees.
Revenue generation from licensing operations can be significant, with exclusive access to strong IP assets offering market advantages. Essential aspects to outline meticulously in licensing agreements include product ownership scope, exclusivity, field of use, territorial limitations, and sublicensing rights.
Careful drafting of licensing agreements helps avoid costly disputes, making these considerations crucial for a successful partnership.
IP and IPRs as the Foundation of legally recognized digital Co-ops: Tokenized IP and IPRs create a solid foundation for establishing digital co-operatives. These co-ops allow creators, collaborators, and other stakeholders to work together, share resources, and distribute profits fairly through the use of tokenized IP assets. This model promotes a more equitable and collaborative approach to the development and management of IP, fostering innovation and ensuring that all participants benefit from their contributions.
Standardized Framework for Rights and License Management: IP tokenization within the Acxyn protocol offers a standardized framework for managing rights and licenses related to intellectual property. This framework simplifies the process of granting and managing usage rights, ensuring that all parties have a clear understanding of their roles, responsibilities, and entitlements. By streamlining rights and license management, the Acxyn protocol reduces complexity, lowers transaction costs, and improves transparency in the IP industry. This, in turn, makes it easier for creators and rights holders to monetize their IP assets while ensuring that all stakeholders are fairly compensated for their contributions.
Intangible assets can generate financing through various methods. The securitization of copyrights, trademarks, and patents attracts investors due to the stable risk/return characteristics of specific intellectual property assets. Investment decisions are based on anticipated revenue stream volatility and asset credit quality analysis.
Intellectual property assets can also be collateralized to raise capital, with third-party lenders providing loans and intermediate guarantors offering additional assurance in case of default. IP capital raises, do not dilute the cap table of companies and so offer an innovative approach to fundraising.
Sale-leaseback arrangements for intangible assets can be beneficial, pooling intellectual property rights for resale, and returning a share of proceeds to contributors over time, effectively diversifying risk.
Spin-out opportunities involve transferring a portion of intellectual property assets from an existing company to a new one, maximizing the assets' potential and attracting new investments and talent.
In summary, IP valuation and tokenization with Acxyn introduces innovative ways to create, share, and monetize digital assets, fostering collaboration and value creation in the gaming industry. The Acxyn valuation framework holds the potential to expand into other digital businesses and standardize IP value assessment. Understanding the true value of IP is critical to attract good liquidity and with the Acxyn ecosystem, we are confident that we will be able to drive renewed interest to web3 games and provide an innovative framework for creators to maximise the potential of web3 revenue.