Tokenize Your Patents: Advantages & Steps for Success

Are you wondering what the advantages of tokenizing patents are? 

Tokenize Your Patents: Advantages & Steps for Success

Are you wondering what the advantages of tokenizing patents are? 

Are you searching for a way to tokenize your own patents? 

If yes, then this blog post is just perfect for you! Here we will go into detail about various benefits that come with patent tokenization and how to carry it out. 

Furthermore, we'll provide several techniques on using these perks optimally to make sure you obtain maximum value from your intellectual property. Therefore, if increasing the worth of your IP is something that interests you simply stay tuned as we explore the world of patent tokenization!

Understanding the Concept of Patent Tokenization

Lately, tokenization of patents has been gaining traction as it affords the capacity to secure and transfer intellectual property rights economically. 

Patent tokenization is simply breaking down an existing patent or application into digital tokens that represent fractionalized ownership. This paves the way for the digitized reflection of proprietorship; plus streamlining how these can be transferred from one person to another. 

The benefits of patent tokenization are enormous.  First, it makes it easy to license intellectual property since there's no need for any physical paperwork. 

Paper-based transfers are a hassle; however, if you tokenize your patents, it becomes much easier to transfer ownership rights safely and quickly without all the extra paperwork or other administrative hassles. 

What's more is that by using tokens instead of paper documents, there are lower transaction costs associated with transferring IP rights because many manual processes involved in traditional acquisitions are eliminated. 

Security is also improved with patent tokens as they're stored on distributed ledgers like blockchain technology which makes them harder hack, steal, or change. In comparison, tampering/ counterfeiting paper documents are a lot easier to counterfeit. 

All information related to each token transaction is recorded on a public ledger, which helps build trust between those involved in the transactions and also serves as valuable evidence should any disputes arise down the line. 

This means that ownership claims remain valid even if issues emerge later. Additionally, it can reduce costs associated with litigation over disputed IP ownership as all records are kept transparently - no need to sift through stacks of paperwork or go through manual processes. In these scenarios, the legal fees alone can add up to far more than the cost to tokenize patents.  

Ultimately, patent tokenization allows individuals and businesses alike to protect their intellectual assets while still making them available when necessary. It's more secure than traditional methods yet offers an efficient way of managing these assets digitally without getting bogged down by costly paperwork or time-consuming procedures.

So you save time and money! 

Unraveling the Advantages of Tokenizing Patents

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Tokenizing patents has become an increasingly prevalent option for safeguarding intellectual property rights and also provides businesses with a novel way of cashing in on their inventions. 

The mechanics behind tokenization of patents involves firms releasing tokens – typically digital assets - onto the blockchain which is legal possession over certain ideas or innovations. 

These tokens are then securely held on the blockchain, enabling all engaged parties to monitor any changes related to it as well as authenticate its legitimacy. 

Interesting thought though; how does this work when there is more than one individual who holds ownership? 

The answer is like any other form of fractionalized assets. Each has a claim to the patent and that claim depends on how the tokenization issuers set it up.  

One big advantage that stands out is inventors having an easier way to monetize their inventions without long legal procedures or waiting months for royalties from companies they license ideas too - this saves time but can also lead into other opportunities at same time.

By inventing tokens that stand for ownership in their invention or idea, entrepreneurs can quickly gain capital from investors who want to put money into innovative projects by way of tokenized investments. 

This also protects them against any infringement claims they might have since they can register it on the blockchain and keep track of whose rights belong where when discussing a licensing agreement. 

What's more, tokens representing patent rights are easy to swap on exchanges between investors which gives added liquidity compared with traditional methods, and better, you have access to a global pool of investors not just your local country. 

How Patent Benefits are Enhanced through Tokenization

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Tokenization is a really useful process for patent protection. It's an effective way to protect and handle intellectual property rights that has recently become more popular among inventors, entrepreneurs, investors and legal pros. 

It's a great help for patent holders because they don't have to worry about managing their rights manually anymore - plus if someone happens to violate those rights by not having rights to it, you can simply point out to them that since they are not a token owner, there are no rights conveyed to them. 

That brings up another major advantage of patent tokenization with its improved transparency in payments between inventors, entrepreneurs, investors and legal professionals involved in licensing agreements or any other financial arrangements regarding the patent rights related to an invention. 

By tokens as a payment method rather than cash or currency equivalents like stocks or bonds; the tracking accuracy improves amongst the parties in IP dealings which decreases disputes concerning payment terms further down the line- definitely advantageous for everyone! 

Lastly, tokenized patents provide more flexibility compared to typical methods since users can access them from practically anywhere that has internet connection instead of having to always send around paperwork with them during filings- not only does this save time but it's also highly convenient!

The Process to Successfully Tokenize Patents

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Tokenizing patents can open the door to new opportunities for companies and inventors. By creating a new asset class, it allows investors to invest in inventions or licensee’s to license patent technology without having to endure an arduous process. 

This process involves two distinct parts: registering and verifying IP ownership as well as making or buying tokens that represent property interests in each invention or patent bunch. 

To begin this registration process, you need documentation proving your IP possession on top of any other information about what’s being tokenized – be it only one invention or a whole package of them. And then voilà! You're ready start taking advantage of newfound doors opened up by tokenizing patents!

After registering and verifying the documents, a smart contract needs to be created for these tokens to interact with their underlying asset. 

This means that those who possess the patent tokens will know what rights they have over them - things like voting rights, or other forms of control over the IP asset. 

It's important to remember here that an independent third-party service provider must verify these documents before they are accepted as proof of ownership. That way everyone involved can make sure authentic and correct information is maintained throughout this process.

This smart contract should also specify how fees from transactions involving these tokens are distributed amongst stakeholders such as inventors and investors who have invested in this project. 

This will provide participants with an additional incentive to participate in this space. After all the documents have been submitted and accepted by those necessary, it's time to create or tokens which represent your patented inventions/patent portfolios that can then be listed on cryptocurrency exchanges for trading purposes!

We’ve written a new eBook about the asset tokenization process and how to tokenize other assets download here. 

Real Life Examples and Success Stories of Patent Tokenization

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Tokenization of patents is a great way for inventors and entrepreneurs to capitalize on their intellectual property without giving up ownership or control. 

This form of tokenization, also known as Tokenized Digital Rights Management (TDRM), enables the inventor or entrepreneur to protect his/her invention from piracy or unauthorized usage while still enabling others to benefit from it. 

The process includes creating digital tokens that are based off the patent's unique attributes such as its purpose, structure, or function. 

Doing so gives innovators peace of mind knowing that they can monetize their inventions without worrying about someone stealing them away! It allows inventors and entrepreneurs alike to be more confident in taking risks since they now have an added layer of protection against theft-related consequences - all thanks to tokenizing patents!

The success stories of tokenized patents being traded already exist within industry circles, proving this new form of asset management has tangible benefits over more archaic methods..

For example, IBM just got together with IPwe - a startup that specializes in patent monetization - to create an all-new system using blockchain technology. This allows organizations to buy and sell intellectual property rights without having through the tedious legal procedures involved. 

What's more, there are plenty of success stories involving tokenized patents where companies have sold off parts or even whole portfolios with this type of digital asset management system. 

Google recently made news when it sold its portfolio of over 3500 patents for a record-breaking $2 billion via an auction held by Intellectual Ventures. They used their proprietary blockchain-based platform called “IV Token”, which allows parties involved in transactions related to IP assets secure access and transferability without the legal complexities associated with traditional methods such as paper contracts or other physical asset management systems. 

By understanding how these real-life examples work, you can be confident in the process and outcome. 

To sum up, tokenization of patents has many advantages for inventors, patent holders and investors. It not only allows them to sell off parts of their rights to a patent but also provides an easy way out in trading the same with minimal costs involved. 


Are you wanting to make your business processes as efficient and smooth sailing as they can be? Then look no further than Smartblocks! 

Our Tokenization agency has been designed with companies like yours in mind, helping them create new monetization opportunities. 

Get on the phone with us today to kick off a free 15 consulting call to see if tokenization will work for you.  

About SmartBlocks

Mark Fidelman

Here at SmartBlocks, we believe it’s time to democratize currency and make it available to anyone, anywhere, anytime.