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

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

Submitted by Victor MICHELLE on

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

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