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What are IP Tokens?
IP-Tokens (IPTs) are ERC-20 tokens that enable fractional governance over IP-NFTs.
IP Tokens (IPTs) are unique ERC-20 tokens that are minted from IP-NFTs. Acting as governance tokens over the IP generated by an IP-NFT, IPTs represent an extension of the intricate legal and blockchain-based contracts that constitute the IP-NFT Protocol. IPTs gather token holders under a shared objective: to construct and cultivate valuable IP.
IPTs are not merely elements of governance; they are a catalyst to democratize control over a collective pool of IP and R&D data from scientific discoveries. Owners of IPTs become co-governors of the IP pool, participating in unique incentive programs, fostering IP growth and experimentation, and cultivating transformative IP networks.
Envision a Biotech DAO as a pirate ship - within its robust hull lie the glittering treasures of IP-NFTs, representing groundbreaking scientific inventions; the ship's lively crew comprises DAO members, contributing their unique skills and knowledge; IPTs act as the ship's rudder, strategically directing the vessel and, by extension, the future trajectory of medicines towards an expansive horizon of human health and progress.
IPTs emphasize the crucial role of patients and researchers - previously treated as cargo of the ship - are now empowered with hands on the wheel. As the generators of the most valuable pharmaceutical data - not only are they deserving of a more substantial share in the governance of medicines - but providing them with this power via IPTs will increase the quality of medicines and the efficiency of their development. This shift in governance underscores the conviction that medical advancements should serve a universal good, leading to better healthcare for all.
Individuals possessing IPTs exercise governance over the IP pool associated with the IP-NFT from which they were minted. Their participation in the IP pool is governed by an adhesion contract, the IPT Membership Agreement. You can familiarize yourself with our standard IPT Membership Agreement.
IPT holders exert control over the IP licensing process, which includes determining the parties involved and the terms of IP licenses, as well as managing the utilization of proceeds derived from these licenses. By holding IPTs, individuals have a direct influence on the way IP licenses are handled, ensuring a fair and transparent process.
Contrary to the holders of fractional NFTs, holders of IPTs using our standard Membership Agreement are not inherently entitled to economic benefits. This means they do not have a predetermined, contractual right to receive any proceeds following the sale of an IP-NFT. Instead, holders of these IPTs are endowed with governance rights. They must actively participate in voting to decide on the allocation of proceeds derived from IP licenses, sales, and other activities related to both the IP and the data within their IP pool.
It is essential to thoroughly consider the implications before initiating or approving a vote to enable economic rights, as this action could potentially alter the regulatory status of the IPTs. For instance, suppose the holders of specific IPTs category decide to grant themselves royalty rights or adopt an alternative Membership Agreement permitting them to profit from the licensing of a drug contained in their IP pool. In those casees, the tokens associated with these contractual rights would most likely be classified as asset tokens or securities, among other possible classifications, contingent on the jurisdiction of the token holders. This change in classification could bring new regulatory responsibilities and consequences that need to be understood and adhered to.
Individuals possessing IPTs exercise administrative control over the licensing of the IP and data connected to their respective IP-NFTs. In the context of IP licenses tied to the IP and R&D data of an IP-NFT, these must be directed and consented to by the IPT holders associated with that specific IP-NFT.
For instance, if a holder of IPTs identifies a potential licensor for the IP, they have the ability to suggest licensing the IP to that particular entity. Following this, other holders of the same IPTs will have the opportunity to vote on whether to issue the license, thereby creating an inclusive and democratic process for IP licensing.
Given the complexities and conflicts in joint IP ownership, the IP developed within the IP pool is retained and controlled by the IP-NFT owner. This approach avoids inefficiencies and complications arising from conflicting IP ownership laws across jurisdictions. While holders of an IP-NFT's IPTs do not possess direct ownership of the IP, they exert control over it through governance rights governing the IP licensing process.
With IPTs, we hope to create a world in which IP rights aren't held solely by a select few but are instead shared amongst many passionate contributors. IPTs are the dawn of a new era in IP management — they provide direct and decentralized governance of IP assets.
Harnessing the power of IPTs provides a platform to democratize the rights of IP-NFTs, distributing them across a group of token holders. This process is brought to life through the
Tokenizersmart contract, which enables an IP-NFT holder to mint IPTs.
But these IPTs aren't just digital tokens; they're memberships, invitations to be part of an IP pool that is unique to their parent IP-NFT. They represent the community's voice, a share in decision-making, and the collaborative shaping of IP's future. This leap towards the future is much more than a technological development; it's a manifestation of collective governance, empowerment, and a shared sense of ownership.
Welcome to the future of IP management, where inventors, empowered by censorship-resistant code, shape the destiny of their creations, select worthy stakeholders, and dictate the course of governance in an innovative blend of creativity and technology.
The first legal contract for IPTs is an adhesion contract called IPT Membership Agreement. We tailored this agreement for DeSci to enable novel ways of organizing around IP development through IP pooling. IP pool memberships are represented as IPTs and governed by the IPT Membership Agreement. Read our IPT Membership Agreement here.