Detailed Plan
Below is some basic information on the proposal, we also attach an initial and indicative Business Model Canvas.
Major problems of IP transactions are speed and cost. Our proposal aims both to reduce the transaction times and the cost associated with intellectual property transactions. Our platform will make it easier for smaller IP owners (e.g. SMEs, Universities) to transact using their IP and in this way benefit from the fruits of their labour. For clarity this proposal relates to IP that exists already, we are NOT proposing a platform to register new IP. Instead we propose an IP and intangible assets transaction platform.
Key phases include:
Ownership
Ownership of the IP needs to clear before it is associated with a NFT. Ownership of a NFT in a wallet demonstrates ownership of a non-fungible token. Ownership of the private key for the wallet holding the NFT shows ownership of the token. A smart contract and/or platform terms will be necessary to enable a NFT to be associated with and to represent the actual legal asset / rights as well as to convey either title or a licence.
As part of verifying ownership the platform will use KYC and AML processes before NFT is minted or sold. We expect most IP assets will have a value which requires AML to occur for the platform to be compliant (due to the financial value). NFT buyers will want KYC to have a clear chain of ownership. AML will be needed and desirable to avoid money-laundering. It also ensures the reputation and brand values of the platform.
Validation
A platform to check funds exist for transaction and to transact once everything in place. We expect software exists in the Cardano ecosystem already for this type of functionality. We understand from recent tonw-halls that this is also developing and improving.
Deal
A platform for minters to choose a contract template - for simple transactions, or a place to store (e.g. on IPFS/similar) data associated with a more complex transaction. Most IP contracts are not simple. Deal structure development work is needed to ensure that IP and intangible asset contracts (which will end up as smart contracts) can be as varied as necessary to meet the varying needs of contracting parties. In the first instance we will focus on straightforward IP sales but in time we plan to migrate to more complex transactions such as licences. In the future we would seek to develop a platform which uses not just ADA but also e.g. DAI, ETH, HBAR, SOL, and allows for interoperability - I buy a ADA NFT and sell if for DAI or vice versa. We recognise many users may wish to exit quickly into a stablecoin following an ADA transaction.
Free of charge element
Whilst most of our product is expected to be for value we also want to give rights owners the ability to gift their IP, or the right to use it, to others, with those giving the access in some cases even choosing to absorb the transaction cost. We want to make it easier for IP owners in developed nations to enable those in less developed states to access developed nation IP - and to develop relationships with the communities in those countries (right now this is really hard). This will increase access to knowledge and access to IP. We also wish to offer reduced cost services to companies in LDCs (as defined by the UN) in particular. For clarity our model will avoid a tragedy of the commons situation from arising. We do not expect much interest in this part of the platform - as there needs to be people and infrastructure to receive IP and in our experience to date often this does not exist (we want to help this change), however we are open to work with countries and their organisations to facilitate greater use of IP and intangible assets. For clarity this is not for IP dumping to make donors look good for transacting low value IP (e.g. Easy Access IP), but more to enable transfer of IP/IA of value - Humanitarian Access Licensing. The approach of Creative Commons is valuable here. This feature will not be our core focus but one we wish to enable nonetheless.
Community
We wish to build a community around our service. We see this as important. Communication via articles on medium and reddit as well as podcasts, videos and conference participation will help with this process. We have confidence that we can build a user community to use our services. The purpose of the platform is not solely to make revenue but also to add value to the communities with whom we work regularly. Both Totalinfo and JT Business Development have worked with numerous innovators from across the world over many years. As companies we have collaborated together on numerous occasions. With our platform we seek to make IP collaboration easier and deal flow faster. However we are not the focus of any community rather it is the community itself.
Extra services
The platform will offer a range of additional services to support core platform activities. These will extend beyond platform services and into services that support the IP transaction e.g. due diligence, competitive intelligence, valuation, business development. Some services will be offered by our companies and similar and other IP and Business Development services will be offered through strategic partnerships. We have many relationships in regard to such services, whether in Europe (North or South), and other regions e.g. Africa, North and South America, South East Asia, China. That said we want to work with and collaborate with many more partners.
Competition - is this idea not obvious?
We know that this type of service has been mooted for many years (at least since 2015/16 if not before). We also recall 2017’s LOCI coin, and other copyright registers during the ICO boom, and we are aware of others with an interest in IP and NFTs. This is a constantly developing space so we expect many companies will launch projects of this type. The world of IP is very large with many specialisms and we believe that there is room for many, many players in this space globally. We are open to collaboration. Comment on our proposal. Send us a direct message.
Funds
The funds we seek are for the early stage of our work. The costings are indicative at this stage. We expect the majority of funds to be spent on development costs. We are in discussions with other investors with a view to attract match funding (we have been developing this project for a while). If you are an investor we would be delighted to speak with you. We do not underestimate the challenges, complexities and costs associated with developing a system which will be robust enough to give users confidence to use it.
Thanks for your attention. We look forward to hearing your (hopefully constructive comments (positive or negative) with great interest!
Expected public launch date
MVP launched on 1st February 2022
We wish to allow for time to create and deliver a proper product. If we can launch a more basic working product before this date we will.
How does proposal deliver on challenge metrics
The proposal will enable and allow for new certifiable transactions on the ADA blockchain
If funded the proposal will enable new utility on the Cardano blockchain and increase transaction volumes.
How does the proposal address the challenge
The proposal addresses the challenge by creating a new and more detailed smart contract format on the Cardano blockchain. This will enable detailed IP transactions to occur certifiably at speed and at scale.
How will success be measured after 3, 6, 12 months
Success will be measured by a launch in February followed by further platform developments and most of all the numbers of platform transactions growing steadily every month.
We expect the MVP to be functional after 3 months. A further 3 months will be spent on onboarding a few test clietns and testing the paltform’s usability and functionality. Special attantion will be put on UX design to ensure a smootha and simple profess on the user’s side.
In 12 motnhs we will have a fully operational platform with all major functionalities available. This will be time to start onboarding new clients and users to increase the database of IP available for transactions and to encourage IP users/buyers to start browsing the database in order to arquire licences and IP ownership.
What budget will be required
[to be confirmed]
IP ownership
The original intangible assets will be owned by the two companies delivering the platform. Much of the platform will be based on open source code and where code licence terms require sharing of some of our product on equivalent terms (e.g. under a GPL licence) we will abide by the terms of these licences. Our platform will be built on the shoulders of giants and we expect others will build upon some of the ideas in our platform. The idea of a smart contract is not novel or an IP platform is not novel, all that is novel is our implementation.
We will create and protect a new brand. This will be registered as a trademark in the UK and China in the first instance. Within 12 months of registration we will register the brand in other territories as appropriate e.g. EU, USA.
Who are the proposers
Richard Nugent: https://www.linkedin.com/in/richardnugent/
[more details to follow]
Jure Tomc: https://www.linkedin.com/in/juretomc/