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What are Molecules?
Molecules are fractions of IP-NFTs with rights given by adhesion contracts. The first model adhesion contract for Molecules is the FAM Agreement.
Molecules are tokens minted as IP-NFT fractions uniting token holders in the common purpose of constructing and developing an IP pool for their IP-NFT.
Fractionalization of IP-NFTs takes IP-NFTs to the next level. By unlocking powers of co-managing IP pools, participating in novel incentivization programs, advancing IP development and experimentation, and building blueprints for innovative IP networks, Molecules serve as a keystone in helping to ensure that the future of medicine belongs to everyone.
As described herein, Molecules come with governance rights over IP licenses and monetary incentives for successful experimentation, support, and development of IP-NFTs.
Holders of Molecules have the power to grant IP licenses for the full scope of rights to “make,” “use,” “sell,” “offer to sell,” and “import” the IP attached to the IP-NFT. Those licenses are not automatic, but rather must be governed in and agreed upon by holders.
For example, if a holder of Molecules finds a potential licensor of the IP, that holder can propose a vote to license the IP to that buyer.
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.
Joint ownership of IP is messy, so the IP developed through the IP pool remains owned and controlled by the owner of the IP-NFT.
IP ownership laws conflict with each other across jurisdictions and when it comes time to transferring or exclusively licensing IP to commercial manufacturers, so joint ownership can create major inefficiencies and headaches.
As a result, holders of Molecules don’t own the IP developed through the IP pool, they just control the IP through governance rights.
Holders of Molecules have governance rights in their IP pools. It is through these governance rights that they take on the charge of effectively co-managing the construction and development of the IP pool and any associated economic rights.
Holders of Molecules can govern in a suite of monetary incentives: shares of future royalties and sales proceeds and access to bounty boards for contributions to the IP pool.