Synthetic IP Value Notes® | European Standard of IP Valuation

SIPs® | Perpetual Synthetic Derivatives (Structured Notes)

Market Readiness: 100% — Ready for Immediate Exchange Review and Listing.

1. Core Idea

Synthetic IP Value Notes (SIPs) are perpetual derivative instruments that enable the market to directly trade and price the intellectual-property-driven component of a company’s equity value, without corporate issuance, corporate consent, or any transfer, pledge, or encumbrance of intellectual property.

SIPs isolate and surface the IP-driven valuation layer already embedded in public equity prices and make it tradable as a standalone market instrument.

2. Reference Equity

Reference Companies:

Publicly traded companies where approximately 50–90% of market capitalization is attributable to intellectual property and intangible assets, as determined by independent valuation methodologies, including but not limited to:

• Ocean Tomo intangible asset market value studies

• Brand Finance valuation methodologies

• Public financial disclosures and market-based analysis

Reference equity is used solely as a pricing anchor and point of market reference.

It is not treated as an underlying asset.

3. Instrument Definition

Synthetic IP Value Notes (SIPs)

Instrument Type:

Perpetual derivative / structured instrument

Key Properties:

• No maturity

• No coupon

• No principal repayment

• Cash-settled

• Price-based exposure only

• Tokenized or non-tokenized implementation

Economic Meaning:

The market price of a SIP represents the market consensus valuation of the intellectual-property-driven component embedded in a company’s stock price.

No external index, ratio, or predefined metric is required.

4. What SIPs Are NOT

SIPs do not:

• represent equity or debt of the referenced company,

• represent ownership, claim, or lien over intellectual property,

• track accounting goodwill or balance-sheet intangibles,

• require issuer participation or approval,

• rely on private, proprietary, or non-public information.

SIPs are:

Pure market instruments for trading IP-driven value perception.

5. European Standard of IP Valuation

The European Standard of IP Valuation defines the percentage share of intellectual property in a company’s stock price through the market trading price of Synthetic IP Value Notes.

The standard governs:

• eligibility of IP-dominant reference companies,

• scope and boundaries of IP-driven value,

• consistency and comparability across markets.

It does not prescribe formulas, indices, or target values.

It defines measurement by market price, not by administrative calculation.

6. Market Interpretation

Interpretation of SIP prices — including:

• implied percentage of IP value,

• relative IP intensity across companies,

• cross-company and cross-sector comparison —

is intentionally left to:

• the market,

• analysts,

• institutional participants,

• independent researchers.

This mirrors established market practices such as:

• equity implied volatility,

• CDS spreads,

• funding rates.

7. Exchange Fit

From an exchange perspective, SIPs are simply:

Perpetual contracts on IP-dominant equity references.

They require:

• familiar risk models,

• standard margining frameworks,

• conventional market-making infrastructure,

while introducing a new, clearly defined economic narrative.

8. One-Liner Definition

Synthetic IP Value Notes® (SIPs®) are perpetual derivative instruments that enable direct market trading of IP-driven value embedded in public equities.