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How does the KNIRV project really work? This presentation gives a detail breakdown of the intangible asset financing industry.

How does the KNIRV project really work? This presentation gives a detail breakdown of the intangible asset financing industry.

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Knirv Business Model Knirv Business Model Presentation Transcript

  • Presents…
  • KNIRV
  • KNIRV (Pronounced NERVE)
    Kinetic Network International Royalty Ventures (KNIRV) is a web based independent intellectual property (IP) transaction clearing house and trading platform providing IP industry compliance; with high-level expertise in artist/inventor networking with corporate sponsors and production companies.
  • What is Intellectual Property ?
    Intellectual property is the intangible but legally recognized right to property in the products of one’s intellect. Intellectual property rights allow the originator of certain ideas, inventions, and expressions to exclude others from using those ideas, inventions, and expressions without permission.
  • Intellectual Property Categories
    The three traditionally recognized forms of intellectual property are copyright, trademark, and patent. Copyright protects expressive works- movies, music, plays, books, and the like. Trademark protects marks that are placed on goods to distinguish them from other goods, generally by identifying the maker or distributor. Patent protects inventions. Both U.S. and international law also protect less well-known forms of intellectual property, such as trade secrets, know-how, and certain industrial designs.
  • Intellectual Property affects everything
    For Example:
    There is an obvious and significant event happening right now in the music industry.
    Consumers are becoming more digital friendly.
    KNIRV cannot predict, manage, or debate whether digital downloads will replace physical CD sales in the long run.
    …but think about it…
  • The stats
  • According to the IFPI, last year 45% of the music industry revenue in the US was made up of digital downloads. That pushed demand for physical CDs down.
    STATISTIC
  • Internet Service Providers (ISP) are being held responsible by governments world wide for peer-to-peer sharing that takes up over 44% of all internet bandwidth.
    STATISTIC
  • New developments have taken place in the Digital Rights Management (DRM) technology markets. The Digital Millennium Copyright Act (DMCA), enacted in 1998, established criminal penalties for circumventing copyright protection systems.
    STATISTIC
  • So, a new digital rights management technology, combined with real demand for single music downloads (evidenced in piracy figures) in a politically friendly environment does spell opportunity, doesn’t it ?
  • Our Product Royalty shares are denoted by the KNIRV RTU™.
    Royalty Traded Unit (RTU™)
    Every qualified asset originator is processed through a detailed submission phase done by our online web application.
    This assigns any percentages shared by the originator to a Royalty Traded Unit.
    Royalty Traded Units are the financial markers that can denote more than one shared percentage for diversification purposes only.
    Each RTU™ is segmented into 4 shares. This is a unique securitization standard.
  • RTU™ Structure
  • Section A- 50% Trading Account
    An account created with the Paypal SDK so that all royalty payments are dispersed automatically.
    Liquid funds are available here for any shareholder that owns this RTU™ account.
    This segment is for trading RTU™’s in a speculative market.
  • Section B- 20% Diversification
    Enables originators (such as musicians) with the ability to invest underlying assets (i.e. beats & lyrics) with each other during the predevelopment phases of the origination.
    Shares can be collaborated into stacks between RTU™’s.
  • Section C- 20% Collateralization
    This segment is reserved for the compliance officers.
    After the development phase is complete, funds go to an escrow account to be used in an IRA.
    Collateralization is an important feature of securitization. Banks, pension funds, and other institutional investors can appreciate the financial preparation of each project.
  • Section D- 10% Fees
    KNIRV Fees
    Agent Commission
    KNIRV Software Developer Royalty
    Philanthropy
  • Each RTU™ is graded based on the number of shares within each stack.
  • What is a stack?
    A stack is Kinetic Network terminology used to describe any number of royalties (in percentile) that have been contracted through the KNIRV Tracker application.
    This negotiated royalty percentage is placed in what is known as a stack by segmenting it into 4 respective securitization percentages.
  • What is a stack?
    A stack is Kinetic Network terminology used to describe any number of royalties (in percentile) that have been contracted through the KNIRV Tracker application.
    This negotiated royalty percentage is placed in what is known as a stack by segmenting it into 4 respective securitization percentages.
    Hence….The RTU™
  • RTU™ Grades
    Platinum = 11-20 or more, Percentage Rights Shared.
    Gold = 6-10 Percentage Rights Share.
    Silver = 2-5 Percentage Rights Shared.
    Bronze = 1 Percentage Right or less.
  • NOTE:Units are qualified vertically. Percentages are quantified laterally.This is what it looks like…
  • Example
    Joe is a lyrical music song writer. Joe has discovered the KNIRV system online and signs up to submit music. He uploads the song, documents, Personal information, and any marketing material required.
    When Joe reaches the Diversification phase of the process, the system will connect him with other musicians who are investing their own creations in the same way.
    Joe can share his lyrics with the beats of another musician listed as “Beat Battles” in the listing he hears through an interactive KNIRV web application.
  • = 1 Bronze Royalty Percentage
    = RTU™’s/Open Investment Positions
    (Beat Battle’s) Beats
    (Pepsi’s) Trademarks
    Unknown Assets
    (Joe’s) Lyrics
  • = 1 Bronze Royalty Percentage
    = RTU™’s/Open Investment Positions
    (Beat Battle’s) Beats
    (Pepsi’s) Trademarks
    Unknown Assets
    (Joe’s) Lyrics
    Limited number of percentages submitted through KNIRV
  • = 1 Bronze Royalty Percentage
    = RTU™’s/Open Investment Positions
    (Beat Battle’s) Beats
    (Pepsi’s) Trademarks
    Unknown Assets
    (Joe’s) Lyrics
    Limited number of percentages submitted through KNIRV
    The
    Developer
    Receives fees.
    The new song
    Begins production.
  • = 1 Bronze Royalty Percentage
    = RTU™’s/Open Investment Positions
    (Beat Battle’s) Beats
    (Pepsi’s) Trademarks
    Unknown Assets
    (Joe’s) Lyrics
    Limited number of percentages submitted through KNIRV
    The
    New Song
    SilverRTU™’
  • = 1 Bronze Royalty Percentage
    = RTU™’s/Open Investment Positions
    (Beat Battle’s) Beats
    (Pepsi’s) Trademarks
    Unknown Assets
    (Joe’s) Lyrics
    More
    Royalties
    Limited number of percentages submitted through KNIRV
    The
    New Song
  • = 1 Silver Royalty Percentage
    = RTU™’s/Open Investment Positions
    (Beat Battle’s) Beats
    (Pepsi’s) Trademarks
    Unknown Assets
    (Joe’s) Lyrics
    More
    Royalties
    More
    Possibilities
    Limited number of percentages submitted through KNIRV
    The
    New Song
  • A New Song !
    This creates a whole new asset.
    Each part gets a shares of any future gains on the combined product.
    Separating royalties from each original part keeps the control in the originators’ hands.
  • Then what….
    This shared royalty unit has a life of three years. A period called Evaluation.
    The underlying product goes into development; into production, management, marketing; into every specific level of development needed. Determined by the IP Broker.
    The number of RTU™’s needed depends on the number of developers contracted to the project through the KNIRV software application.
    During this time Joe can still share his other percentages in those same lyrics with other royalty traded units ( maybe another beat or trademark within KNIRV; publishing company, label, etc. without).
    Joe’s Rights are his! KNIRV provides the platform.
  • Where is the money?
  • Where is the money?
    Chain of Financing
  • Chain of Financing
    The Rosie Model
  • Chain of Financing
    The Rosie Model
    Originator
    (Idea Creator)
  • Chain of Financing
    The Rosie Model
    Originator
    (Joe)
  • Chain of Financing
    Originator
    (Idea Creator)
    Royalties
    Asset Submission Web Application
  • Chain of Financing
    Originator
    (Idea Creator)
    Royalties
    Asset Submission Web Application
    KNIRV
  • Chain of Financing
    Originator
    (Idea Creator)
    Royalties
    Asset Submission Web Application
    KNIRV
    KNIRV IP Financing Vehicle Products
    A defined number of ******Royalty Units*******
  • Chain of Financing
    Originator
    (Idea Creator)
    Royalties
    Asset Submission Web Application
    KNIRV
    KNIRV IP Financing Vehicle Products
    A defined number of ******Royalty Units*******
    The Kinetic Network Member Interface
    Marketing Contractor
  • Chain of Financing
    Originator
    (Idea Creator)
    Royalties
    Asset Submission Web Application
    KNIRV
    KNIRV IP Financing Vehicle Products
    A defined number of ******Royalty Units*******
    The Kinetic Network Member Interface
    Marketing Contractor
    Production Contractor
  • Chain of Financing
    Originator
    (Idea Creator)
    Royalties
    Asset Submission Web Application
    KNIRV
    KNIRV IP Financing Vehicle Products
    A defined number of ******Royalty Units*******
    The Kinetic Network Member Interface
    Marketing Contractor
    Production Contractor
    Management Contractor
  • Chain of Financing
    Originator
    (Idea Creator)
    Royalties
    Asset Submission Web Application
    KNIRV
    KNIRV IP Financing Vehicle Products
    A defined number of ******Royalty Units*******
    The Kinetic Network Member Interface
    Marketing Contractor
    Production Contractor
    Management Contractor
    Other Developers
  • Chain of Financing
    Originator
    (Idea Creator)
    Royalties
    Asset Submission Web Application
    KNIRV
    KNIRV IP Financing Vehicle Products
    A defined number of ******Royalty Units*******
    The Kinetic Network Member Interface
    Marketing Contractor
    Production Contractor
    Management Contractor
    Other Developers
    Investment Developer
    IP Agents
    Interface
  • Chain of Financing
    Originator
    (Idea Creator)
    Royalties
    Asset Submission Web Application
    KNIRV
    KNIRV IP Financing Vehicle Products
    A defined number of ******Royalty Units*******
    Marketing Contractor
    Production Contractor
    Management Contractor
    Other Developers
    Investment Developer
    IP Agents
    Interface
    Investors
  • Chain of Financing
    Originator
    (Idea Creator)
    Royalties
    Asset Submission Web Application
    KNIRV
    KNIRV IP Financing Vehicle Products
    A defined number of ******Royalty Units*******
    The Kinetic Network Member Interface
    Marketing Contractor
    Production Contractor
    Management Contractor
    Other Developers
    Investment Developer
    IP Agents
    Interface
    Investors
    Funding
  • Chain of Financing
    Originator
    (Idea Creator)
    Royalties
    Asset Submission Web Application
    KNIRV
    KNIRV IP Financing Vehicle Products
    A defined number of ******Royalty Units*******
    The Kinetic Network Member Interface
    Marketing Contractor
    Production Contractor
    Management Contractor
    Other Developers
    Investment Developer
    IP Agents
    Interface
    Intellectual Property Exchange International
    Investors
    Funding
  • Chain of Financing
    The Rosie Model
    Originator
    (Idea Creator)
    Royalties
    Asset Submission Web Application
    KNIRV
    KNIRV IP Financing Vehicle Products
    A defined number of ******Royalty Units*******
    The Kinetic Network Member Interface
    Marketing Contractor
    Production Contractor
    Management Contractor
    Other Developers
    Investment Developer
    IP Agents
    Interface
    Intellectual Property Exchange International
    Investors
    Funding
  • Chain of Financing
    The Rosie Model
    Rosie
  • Kinetic Network Member Interface
    KNIRV’s online tools serve as an intermediary among markets.
    The stand alone web platform for increased revenue volatility for everyone involved.
    Networking based on a secured structure of trading products and services; establishing the intellectual property financing industry of the 21st century.
  • The KNIRV Investor’s Desktop Portfolio Widget
    Links to web pages & applications
  • Bottom-Up Investment Process
    All IP agents of the advisement office strive to abide by a consistent philosophy and process. This process involves a collective effort to identify what the agents believe are the best values and trends in the marketplace. Each IP Agent typically constructs a focused portfolio from a list of quality artists, built on a song by song basis from the bottom up.
    Invest
    • Managers select contracts from the approved list for their specific funds.
    • A list of approved contracts is created.
    • Rigorous analysis is performed to ensure that artist meets the advisor’s strict value standards.
    • Managers and research team screens songs for copyrights that are worth further consideration.
    • All music copyright contracts available for investment.
    Approved List
    Quantitative and Qualitative
    Research
    Criteria Screens
    Universe of Thousands of Music
    Artists
  • Principal Investment Strategies
    Investment Philosophy
    Kinetic Network International Royalty Ventures (KNIRV) uses a value investment philosophy in selecting Intellectual Property Assets. The mission of KNIRV is to provide top-quality intellectual property financing services, primarily specializing in copyrights, trademarks, and patents.Therefore, this investment philosophy is based upon the belief that, over time, a copyright royalty’s unit volume converges with the asset’s true artistic value. By true artistic value we mean an estimate of the price a knowledgeable investor would pay to sign a deal with the originator of the intellectual property. We believe that investing in IP assets with royalty volumes significantly below their true artistic value presents the best opportunity to achieve a fund’s investment objective.
  • Principal Investment Strategies
    Compliance Philosophy
    In order to serve the intellectual property financing industry most effectively, it is extremely important that our agents take competent efforts to be as accurate as possible. The appraisal of the asset is the financial foundation upon which all tangible results are uniquely forecasted .The nature of intellectual property is intangible; therefore the KNIRV system guides IP Agents along a path of standardization in relation to asset measurements across a broad spectrum of industries. These analytic measurements are part of a method; making up the key business strategy of KNIRV; thus, stand as a compliance measure of goodwill to the KNIRV brand and shareholder interests overall.
  • Principal Investment Strategies
    Tenants of Compliance Philosophy
    Agents asses the entire situation of every prospected asset originator. Objective- To determine the quality of future profits based off of the social, economic, political, and creative capabilities of the originator and/or their work.
    Agents practice brainstorming for all diversification strategies as well as valuation models. Objective- To determine which strategy will be the best fit for the asset as it enters the market for evaluation.
    Agents take into consideration all relevant industries of the asset through aggregated information. Objective- These key determinants of value must either qualify or quantify any valuations of the asset to determine discount factors.
    Agents must be prepared to present all structured deals to investors, partners, and federal officials if requested. Objective- To propose a culturally competent, balanced conclusion supported by aggregated research.
  • Portfolio Structure
    The advisor believes that holding a relatively small number of artists allows it’s “best ideas” to have a meaningful impact on fraud performance; therefore the portfolio of each fund typically holds 10 to 20 artists rather than hundreds. Each artist profile comes complete with valuation models, current royalty stats, and an electronic press kit.
    The Advisor’s value strategy also emphasizes investing for the average length term. The advisor believes that the market will ultimately discover these undervalued artisans, so it gives them the time such recognition requires. The advisor has found that generally it takes one to three years per contract for the gap between royalty volume and true artistic value to close by selling the contract to a major label. Therefore, successful implementation of this value investment philosophy does not require that the funds and their shareholders have a long term investment horizon.
  • Investment Developer Levels
    Product (underlying asset) Evaluation Launch
  • David Silverman— Chief Operating Officer of the intellectual property exchange international (IPXI) States Fact….
    “IP is the biggest asset class on the planet, worth an estimated $5.5 trillion, in the U.S. alone. That’s bigger than the GDP of any country.”
    “During the last 35 years, there has been a fundamental transformation in where the value of our most important companies resides.”
    “In 1975, only about 17% of the value of S&P 500 companies was found in intangibles, which are defined as patents, copyrights, trademarks, and trade secrets.”
    “About 83% of the value was in stuff; factories, machines, land. Today, by contrast, over 80% of the value of these companies is found in intangibles.”
  • Cross Market Research Segmentation
    Evaluation research gets itemized down to the specific asset in question; taking
    Into consideration each category and subcategory.
    Intellectual Property Monetization Industry
  • Cross Market Research Segmentation
    Evaluation research gets itemized down to the specific asset in question; taking
    Into consideration each category and subcategory.
    Intellectual Property Monetization Industry
    Financial Industry
  • Cross Market Research Segmentation
    Evaluation research gets itemized down to the specific asset in question; taking
    Into consideration each category and subcategory.
    Intellectual Property Monetization Industry
    Financial Industry
    IP Investor Markets
  • Cross Market Research Segmentation
    Evaluation research gets itemized down to the specific asset in question; taking
    Into consideration each category and subcategory.
    Intellectual Property Monetization Industry
    Financial Industry
    IP Investor Markets
  • Cross Market Research Segmentation
    Evaluation research gets itemized down to the specific asset in question; taking
    Into consideration each category and subcategory.
    Intellectual Property Monetization Industry
    Financial Industry
    IP Investor Markets
  • Cross Market Research Segmentation
    Evaluation research gets itemized down to the specific asset in question; taking
    Into consideration each category and subcategory.
    Intellectual Property Monetization Industry
    Financial Industry
    IP Investor Markets
  • How Does THE KNIRV TRADING PLATFORM Effect royalty revenue ?
    One simple answer…
  • Risk Mitigation
    The IP agent manages the risk of investing in copyright royalties by assigning and advising each contracted developer per RTU™ in the complete ‘bundle' of an originator’s work with services such as:
    Comprehensive individual tutoring.
    Extensive rehearsal time.
    In-studio production work.
    Arrangement and editing of recorded product.
    Coordination of the manufacturing and distribution of product.
    Marketing of finished product.
    Ongoing analysis of strategic placement and acceptance of product and performance.
    Influential public relations efforts.
    Follow-up and maximization of audience acceptability with additional strategies to further amplify recognition and revenue.
    The coordination and management of live performances in correlation with the recorded product and market demand.
    The Advisor seeks artists’ with solid original works and recorded content; continuously monitoring each portfolio holding.
  • TEAM WORK EQUALS SUCCESS !
    Affiliate service fulfillment will be provided by principals of KNIRV Enterprises in coordination with the contributing contractors. The key fulfillment will be enforced by the principals of the business through agreements with asset originators from whom actual deliverables are provided.
  • Please go to KNIRV.com today to join Kinetic Network!
    Contact Point: Guillermo Perry
    Phone: 305-496-1739
    Email: gperry@knirv.com
    www.knirv.com