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What are FAM?
FAM is an acronym of Fractional Asset Member.
FAM are tokens minted as IP-NFT fractions uniting token holders in the common purpose of constructing and developing an IP Commons for the IP-NFT.
Fractionalization of IP-NFTs into FAM takes IP-NFTs to the next level. By unlocking powers of co-managing IP commons, participating in novel incentivization programs, advancing IP development and experimentation, and building blueprints for innovative IP networks, FAM serve as a keystone in helping to ensure that the future of medicine belongs to everyone.
As described herein, FAM tokens come with IP licenses, governance rights, and monetary incentives for successful experimentation, support, and development of IP-NFTs.
FAM licenses grant a full scope of rights to “make,” “use,” “sell,” “offer to sell,” and “import” the IP, but only for a limited time and only for the purpose of constructing and developing the IP Commons.
The purposes of these licenses are not to empower FAM token holders to become commercial manufacturers of products and services that use the IP. Instead, they are intended to empower FAM token holders to help develop and experiment with the IP. Because IP-NFTs can contain a variety of IP–trade secrets, patents, copyright, etc. the FAM licenses help to ensure that FAM token holders have complete freedom to pursue the purpose of constructing and developing an IP Commons from the IP-NFT.
Once the commons has achieved its purpose and the IP is ready to go into the hands of a commercial manufacturer, the licenses come to an end.
The IP developed through the IP Commons remains owned and controlled by the owner of the IP-NFT, as joint ownership of IP is messy. IP ownership laws conflict with each other across jurisdictions and when it comes time to transferring or exclusively licensing IP to commercial manufacturers, joint ownership can create major inefficiencies and headaches.
So then, if FAM token holders don’t get to own the IP developed through the IP Commons, why would they participate?
FAM token holders get access to a suite of monetary incentives: shares of future royalties and sales proceeds and access to bounty boards for contributions to the IP Commons.
FAM token holders have governance rights in the IP Commons. It is through these governance rights that FAM token holders take on the charge of effectively co-managing the construction and development of the IP Commons, including the administration of the bounty boards and, if and when FRENS rolls out, interfacing with holders of FRENS.