WIPO eTISC's Expert Victor Michelle: What Are IP CDOs?

IP CDOs (Intellectual Property Collateralized Debt Obligations) are usually innovative blockchain digital assets acknowledging debt & constituting a form of scrip (form of credit).

Pledge: the term is used to denote the property which constitutes the security & is a type of security interest. A pledge of personal property is known as a pawn.

Credit: trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt), but promises either to repay or return those resources (or other materials of equal value) at a later date.

The resources provided by the first party can be either property, fulfillment of promises, or performances.

The resources provided are financial & encompasses any form of deferred payment.

IP CDO is a financing \ tradable, collateral \ pledge, debt & credit instrument developed by the Russian economist Victor Michelle & proposed in order to involve intellectual property assets in international economic turnover, which are not, according to international laws, to be registered with any agency of federal governments including in such as The U.S. Securities and Exchange Commission (SEC).

IP CDOs are types of structured asset-backed IOU (informal document acknowledging debt), where they may not specify repayment terms such as the term & time of repayments.

Like other private label securities backed by assets, a CDO can be thought of as a promise to pay investors in a prescribed sequence, based on the cash flow the CDO collects from the pool of bonds or other assets it owns.

Intangible asset finance, also known as IP finance, is the branch of finance that uses intangible assets such as intellectual property (legal intangible) and reputation (competitive intangible) to gain access to credit.

Intangible assets include business processes, IP Assets & IP Rights such as patents, copyright, franchises, goodwill, trademarks & trade names, reputations for ethics and integrity, quality, safety, sustainability, security & resilience, R&D, know-how, as well as any form of digital asset such as software and data.

Businesses can benefit from unlocking value from their intangible assets, with intellectual property and other intangibles adding at least double the value to products as tangible capital.

IP CDOs Types & Characteristics:

By maturity:

Perpetual (there is no fixed payment period, they give a constant income, they are similar to preferred shares).

By type of income:

Discount or coupon-free. There is no coupon payment, bonds are placed below face value, and income is generated by the difference between the purchase price and the redemption/sale price.

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Sincerely,

Victor Michelle

Author & Creator

of the 1-st in the World

IP CDOs & IP Assets Staking

victor.michelle.ceo@gmail.com

Telegram @eurasian

X @eurastex

Intellectual Capital & Global Economy | The Interdependence of Perpetual Growth

In the 21st century, the growth of the global economy and stock markets is limited by the traditional forms of capital.

However, this economic theory does not take into account the growth potential based on the intellectual capital of humanity.

Intellectual capital is the key factor that can remove the limitations for the growth of the global economy and stock markets.

In the era of the knowledge economy, we can expect sustainable growth and development based on an incessant flow of new ideas and innovations.

So, the growth of stock markets and the global economy is limited only by our ideas about what can be achieved with traditional forms of capital. But if we look at the world through the prism of the results of intellectual activity, we will see endless opportunities for growth and prosperity.

Thanks to the continuous creation of results of intellectual activity (RIA), the growth potential of the global economy and stock markets becomes limitless.

Thus, intellectual capital, increasing over time, creates new opportunities for innovation and economic growth, which in turn allows us to overcome the limitations associated with traditional forms of capital, and the ever-increasing flow of new ideas, technologies and knowledge created by humanity every day allows us to say the following:

An inexhaustible resource: unlike traditional resources, intellectual capital has no physical limitations. The human mind is capable of generating new ideas and solutions endlessly, stimulating the development of new technologies and industries.

• Unlimited growth potential: unlike traditional assets such as oil, gas or metals, which have limited reserves, IP assets are an unlimited resource. New ideas and developments appear every day, and each of them can become the basis for creating a new product or service.
• Synergetic effect: the growth of intellectual capital leads to the emergence of new tools and technologies, which, in turn, accelerate the process of creating even more new ideas, thus creating a powerful synergetic effect.
• Unlimited opportunities: The growing value of companies based on intellectual capital creates the potential for unlimited growth in global stock markets, opening up new opportunities for investors to invest and grow their capital.
• Low reproduction costs: Unlike physical assets, intellectual property can be reproduced at minimal cost. This enables innovative companies to scale without significant capital investment.
• Global market: Intellectual assets can be easily monetized in the international market, creating new investment opportunities and expanding the market for IP owners.
• The result: an endless vicious circle of growth in the global economy based on intellectual capital.

In today’s world, where technological progress is steadily accelerating, the main driver of growth is rapidly shifting from material resources to intellectual capital, and this concept, based on the knowledge economy, innovation and creativity, leads to unprecedented opportunities for the global system of distribution of public goods.

Traditional economic models of the 20th century, based on limited resources, are unable to reflect the reality of the intellectual economy of the 21st century.

Intellectual capital, unlike material resources, is inexhaustible and grows infinitely, which is associated with the constant development of science, education, technology and culture.

The transition to a model of reliance on IP assets is becoming a key factor in overcoming the limitations of current economic growth and the crisis in financial markets, in the global economy and liquidity in stock markets, since intellectual property has characteristics that allow it to grow independently of traditional economic cycles.

Unlimited growth of intellectual capital opens up unprecedented opportunities for the global economy: the intellectual economy is moving from the traditional model of limited resources to a model of unlimited resources and endless growth.