Legal & IP

Tokenization

Tokenization in the legal field, and specifically in intellectual property, refers to the use of the blockchain to create tokens that represent ownership or rights to intellectual assets.

In few steps

Creation of tokens

A creator, inventor, or company creates tokens on a blockchain that represent ownership or rights to a work of art, invention, trademark, patent, or other intellectual asset.

Selling tokens

Tokens are then offered for sale, allowing others to purchase a share of the ownership or rights to the intellectual asset.

Rights management

Token holders can exercise their rights over the intellectual asset based on what their tokens represent. For example, they might have the right to receive a share of the royalties generated by the asset.

Transfer of tokens

Tokens can be sold or transferred to others, allowing token holders to monetize their rights to the intellectual asset.

Examples

Patents

A company could tokenize a patent, allowing investors to buy a share of the rights to the patent and receive a share of the royalties generated by its use.

Trademarks

A company could tokenize a trademark, allowing investors to purchase a share of the rights to the trademark.

Copyrights

An author could tokenize the copyright to a book, allowing investors to purchase a share of the copyright and receive a share of the royalties generated by the book’s sales.

Industrial designs

A designer could tokenize an industrial design or product design, allowing investors to purchase a share of the rights to the design and receive a share of the profits generated by the sale of the product.

Music

A musician or band could tokenize their music, allowing investors to purchase a share of the rights to the music and receive a share of the royalties generated by sales of the music or its use in movies, commercials, etc.

Main advantages

Increased Liquidity

Tokenization facilitates quick transactions and opens the market to more investors, thereby increasing liquidity.

Fractionalization

Tokenization makes legal & IP investing more accessible by allowing the purchase of small fractions of an asset.

Transparency and Security

Thanks to the blockchain, tokenization offers greater transparency of transactions and enhanced security.