Intangible assets, which account for up to 90% of a company's value, especially patents, which make up the largest proportion of these assets, are hardly ever utilized for corporate value creation despite their value. In this presentation, I introduce patent management solutions for the development of patents that can contribute to corporate value creation, using the latest digital technologies such as AI, blockchain, and Web 3.0. I also introduce measures to maximize the financial use of patent assets secured through such patent management. In particular, I will look into the domestic and overseas trends of STO (Security Token Offering), which have recently been gaining attention in S. Korea, and learn about strategies and methods for patent asset STO.

1. Patent Management & STO
Patent Management & STO
i th Ch tGPT E
in the ChatGPT Era
7/29, 2023
7/29, 2023
Alex G. Lee

2. Patents: A Key Valuable Business Resources
Motorola Mobility Patents Value: $9,59bn
Nest Labs’ patent value recognition in M&A
Nest Labs, founded in 2010, acquired by Google for $3.2 billion in 2014.
Build up 132 US issued patents (+ pending applications + international families) in four
years
years
Cf. SmartThings’ acquisition by Samsung for $200 million with no patent
g q y g p
*notice the value difference: $3.2 billion v. $200 million

3. Finance of Patents
Patent Financial & Commercial Utilization
Financial Utilization of Patents
Commercial Opportunities of Patents
Patents can be considered as
financial assets because they
have value and can be used as a
Patents can be monetized by licensing the patented
to other companies, selling the patent outright, or
using the patent to generate income through
Commercial Opportunities of Patents
Licensing: If you own a patent, you can license it to others who want to
use it. This can create a steady stream of revenue without requiring you
to manufacture or market the product yourself Licensing can also help
source of revenue or collateral.
Patents can also be considered as
non financial assets in the sense
using the patent to generate income through
litigation. Challenges: Disputes over the
ownership or validity of patents can be time-
consuming and expensive to resolve.; Patents of
l lit ith li it d l t b
to manufacture or market the product yourself. Licensing can also help
you to expand the market reach of your innovation by allowing others to
use it in ways you may not have considered.
non-financial assets in the sense
that they represent an intangible
asset that provides legal protection
for an invention and can be used
low quality or with limited value may not be
effective in generating revenue.; The costs
associated with patent monetization process can be
high.
Spin-offs: Patents can be the basis for creating spin-off companies that
focus on developing and marketing products based on the patented
technology.
to build a competitive advantage in
the market.
Patents can be considered as an
g
Patent securitization provides an alternative
financing option for companies by issuing securities
backed by their patents
Partnerships: Patents can be used as a bargaining chip in negotiations
with other companies. For example, a company with a valuable patent
may be able to use it to secure a partnership or joint venture with a
l th t h th t d l d k t th
Patents can be considered as an
asset class, as they are a form of
intangible asset that provides legal
protection for an invention and can
backed by their patents.
Challenges: The process of patent securitization is
time-consuming and costly.; The value of patents
can be difficult to determine, which can lead to
larger company that has the resources to develop and market the
product.
Competitive advantage: Patents can provide a competitive advantage
be bought and sold.
Patents have the potential to
generate financial alpha (returns
uncertainty; Finding the resale market for patent
security interests is difficult.
In patent-backed lending patents serve as
p g p p g
by protecting your innovation from being copied by others. This can help
you to capture a larger share of the market and increase profits.
Investment: Patents can also be used to attract investment If you have
generate financial alpha (returns
that are higher than the market
average) by providing legal
protection for an invention and
ti th h
In patent-backed lending, patents serve as
collateral for the loan, and the lender can take
possession of the assets if the borrower defaults on
the loan.
Investment: Patents can also be used to attract investment. If you have
a patent for a technology or product that has significant commercial
potential, investors may be more willing to invest in your company.
generating revenue through
licensing or enforcement.
Challenges: The value of patents can be difficult to
determine, which can lead to uncertainty.
M&A: Companies with a strong patent portfolio often receive higher
valuations and a better negotiating position during M&A transactions.

4. Alex for Patent Business

5. IoT Innovation Fund for Business Growth
IoT Innovation Fund for Business Growth
5
Dec. 9, 2016
Alex G Lee (alex lee@liquidax com)
Alex G. Lee (alex.lee@liquidax.com)

6. Introduction to Liquidax
q
• Liquidax identifies, acquires and commercializes Internet of Things (IoT) patents and
correlated technologies for target injection into numerous public companies operating on
l b l t k h ll t it l b k d i t i b ti
global stock exchanges, as well as, venture capital backed private companies boosting
business growth and expediting exits.
• Our infrastructure is based on a combined VC and PE model in order to aggressively acquire
and exploit high-quality patents and correlated technologies for IoT innovations of our portfolio
partners.
Th Li id d b t f d Li id Gl b l E h F d I LP i
6
• The Liquidax debut fund; Liquidax Global Exchange Fund I, LP is a
private equity fund. We are currently building relationships with
IP/Tech and Global portfolio partners.
IP/Tech and Global portfolio partners.

7. Our Approach
Identify Key IoT Technologies for Applications in Many Markets/Sectors Globally
• Identify Key IoT Technologies for Applications in Many Markets/Sectors Globally
• Acquire Superior IoT Patents and Correlated Technologies
• Identify Key Innovation Strategies with Portfolio Companies
• Identify Key Innovation Strategies with Portfolio Companies
• Provide Superior IoT Innovation Development Platform
– Intellectual Property Rights (IPR) for keeping out your competition
– Intellectual Property Rights (IPR) for keeping out your competition
– Technology for innovation implementation
– Technology Transfer (Prototypes Software Etc) developed in concert with patents
Technology Transfer (Prototypes, Software, Etc) developed in concert with patents
• Only compensated One Time in equity & some cash at the closing of each sub-license
– We believe in long term growth of your business
7
We believe in long term growth of your business
– Place equity into funded IoT ETF at conclusion of the fund
– No additional quarterly/annual licensing fees, costs or additional semi-annual royalties ever.
q y g , y

8. Our Model
8

9. What We Provide to Portfolio Partners
Strategically packaged technology that is in complete alignment with IPR providing maximum
• Strategically packaged technology that is in complete alignment with IPR providing maximum
protection
• Selection of key patented technologies for the competitive advantages
and business growth based on emerging IoT market insights
• Benefits
– Alternative to costly M&A and time consuming internal R&D
Enable cost effective and faster time to market
9
– Enable cost effective and faster time to market
– Enable lower risk and high ROI innovation investment
Enable new product/service development in alignment with business strategies
– Enable new product/service development in alignment with business strategies
– Accelerates Growth, Limits Competitors, and Increased Corporate Value

10. Liquidax Core Competencies
• Superior Industry Experience in IoT Technologies and Patents
U d t d i ti d i t h t i ill d
– Understand innovations and requirements what companies will need
– Select specific technology that is essential for emerging markets
Ensure more competitive positions over competitors
– Ensure more competitive positions over competitors
– Enables innovative products and services
• Identify Validate & Acquire Innovations and IP Rights that are “proven”; allowing partners to
• Identify, Validate & Acquire Innovations and IP Rights that are proven ; allowing partners to
rapidly innovate and integrate new innovation and IPR into existing markets & platforms
• Ensures partners can save money in the development, acquisition, integration and application
su es pa e s ca sa e o ey e de e op e , acqu s o , eg a o a d app ca o
of new technologies and IP rights.
• Use proven technology platforms and infrastructures allowing success in today’s world
10
• Clear understanding of current sectors and emerging trends of IoT industries and market
development
P f li h i ll k d i h h l h i i l
• Patent portfolios that are strategically packaged with proven technology that is in complete
alignment with issued intellectual property rights for use in existing markets thus eliminating
risks
risks

11. Liquidax Patented Technology Portfolio
Liquidax Patented Technology Portfolio
RTLS (Real Time Location System)
RTLS (Real Time Location System)
• High precision/accuracy low cost indoor location finding system: RTLS are used to automatically
identify and track the location of objects or people in real time within a contained area
identify and track the location of objects or people in real time within a contained area.
• Liquidax patented WiFi/Bluetooth based RTLS technology exploits WiFi based finger printing
technique with Bluetooth based error correction method for providing high precision/accuracy low
cost indoor localization.
Intelligent Wireless Connectivity
• Multi-radio adaptive connectivity with secure data transfer: Intelligent Wireless connectivity
enables adaptive selection of wireless network standards for optimal diverse usage providing and
11
enables adaptive selection of wireless network standards for optimal, diverse usage providing, and
secured data transfer connectivity.
• Liquidax patented intelligent wireless connectivity technology enables secured interference
Liquidax patented intelligent wireless connectivity technology enables secured interference
resistant dynamic intelligent network selection of a radio communication standard among available
heterogeneous wireless networking standards.

12. Liquidax Patented Technology Portfolio
q gy
Advanced Wireless Sensor Networks
R b t d i d d t t i i d ti it Wi l
• Robust, dynamic, power-aware, and secure data transmission sensor nodes connectivity: Wireless
sensor networks (WSN) involve hundreds or thousands of small sensor nodes that can remotely
communicate with neighboring devices.
co u ca e e g bo g de ces
• Liquidax patented wireless sensor network technology enables opportunistic location-aware
connectivity among energy harvesting sensor nodes for secure sensor data transfer and usage.
Advanced M2M Telemetry/Telematics
• Future-market adaptive (e.g., compatible with emerging IoT connectivity) remote monitoring/control
system: Machine-to-machine (M2M) communications technologies allow remote monitoring and
control of assets or people
12
control of assets or people.
• Liquidax patented M2M technology enables a low message rate, power-aware, and secured
wireless connection that is capable of monitoring/control large numbers of the IoT devices cost
e ess co ec o a s capab e o o o g/co o a ge u be s o e o de ces cos
effectively.

13. Liquidax Patented Technology Portfolio
Liquidax Patented Technology Portfolio
Location based AR (Augmented Reality)
• Better instruction and decision making for users: AR is the integration of digital information with the
• Better instruction and decision making for users: AR is the integration of digital information with the
user's environment in real time such that overlays new information on top of the existing
environment. Combining with RTLS technology, the location based AR enables diverse IoT
applications.
• Liquidax patented location based AR technology enables delivery of visually augmented location-
b d i f ti ( i t f i t t idi t )
based information (e.g., points of interest guiding system).
Smart Data Center Connectivity
Smart Data Center Connectivity
• Software-defined Networking (SDN) based big data storage & processing system connectivity: As
the amount of traffic increases, there is a greater need for simple, scalable end-to-end network
13
the amount of traffic increases, there is a greater need for simple, scalable end to end network
architectures and implementations that enable big data storage & processing system to use the
network most efficiently. SDN enables programmatic control of the data center network system to
t th i t f th bi d t li ti
meet the requirements of the big data applications.
• Liquidax patented SDN controller software controls network traffic among the network devices for
providing fault tolerant secured and efficient data transfer among network devices
providing fault tolerant, secured, and efficient data transfer among network devices.

14. Liquidax Patented Technology Portfolio
q gy
Sensor Fusion
• Improved sensor fusion to determine desired information: Sensor fusion is a process of combining
p p g
data from different sensors to produce output more than could be determined by any one sensor
alone. Sensor fusion algorithm techniques include Kalman Filtering, Covariance Intersection,
Hidden Markov Models Partially Observable Markov Decision Process and Bayesian Networks
Hidden Markov Models, Partially Observable Markov Decision Process, and Bayesian Networks
solution.
• Liquidax patented sensor fusion technology provides simplified and advanced sensor fusion
Liquidax patented sensor fusion technology provides simplified and advanced sensor fusion
technique to obtain desired information for diverse applications.
14

15. Business Opportunities
Technology IoT Application/ Use Case Applicable Industry
RTLS
Tracking of assets and people, theft prevention, navigation
system, location base CRM, inventory management, public
safet (e g locate firefighters) man fact ring a tomation
Health care, manufacturing, automotive, retail, convention,
entertainment, security, robot, transportation, logistics
safety (e.g., locate firefighters), manufacturing automation
y p g
Intelligent Wireless
C ti it
Home/building automation, connected health care,
f t i t ti i ti d i
Consumer electronics, industrial automation, health care,
f t i t l i ti
Connectivity manufacturing automation, communication devices manufacturing, telecommunication
Advanced WSN
Smart farming, manufacturing automation, connected car,
environmental monitoring, industrial control
Agriculture, weather, military, automotive
15
environmental monitoring, industrial control
Advanced M2M
Smart meter, smart grid, asset tracking, connected car,
industrial control
Energy, agriculture, manufacturing, telecommunication,
industrial electronics
Tracking of assets and people navigation system location
Location based AR
Tracking of assets and people, navigation system, location
base CRM, inventory management, manufacturing
automation
Consumer electronics, automotive, retail, convention,
entertainment, industrial electronics, agriculture, manufacturing
SDN Data center, cloud service Telecommunication, IT, industrial electronics
Autonomous vehicle, surveillance systems,
vision-augmented navigation, personal fitness/health Consumer electronics, automotive, security, energy, agriculture,
Sensor Fusion
vision augmented navigation, personal fitness/health
management,
manufacturing automation
Consumer electronics, automotive, security, energy, agriculture,
manufacturing, health care, robot

16. Does your company have 'freedom to operate' your AI business without patent litigation risk?
Alex G. Lee (https://www.linkedin.com/in/alexgeunholee/)

17. Metaverse Innovation Insights from Patents

18. Patents AI Demos
Demo Video: https://www.youtube.com/watch?v=kVmHmh0Kbos

20. AI for Patent Management
Patent Drafting C titi I t lli
Patent Drafting
Claims to Specifications/Figures
Competitive Intelligence
Classification/Landscaping
Technology Summarization
Technology Forecasting
Comparing Patent Similarity to Detect Competitors
Infringement
https://www.youtube.com/watch?v=tmoBrD5Jn6g&t=57s
Infringement
Prior Arts Search for Validity through Text
Similarity Measurement
C AI b d d t i h th t t
Inventive Ideas to Claims
Seed Input: “An artificial intelligent emotion chatbot using an advanced deep learning natural language
processing.”
Can AI be used determine whether a patent
reads on a given product or service?
(i) analyze for evaluating the scope of the
patent claims and (ii) determining whether the
Generated Patent Claim
An artificial intelligent emotion chatbot using an advanced deep learning natural language processing (ALS)
framework and being configured to respond to a natural language spoken by an individual, the artificial intelligent
emotion chatbot comprising:
a natural language understanding component that receives a natural language from the individual, that
receives emotion information from the individual, and
th t i t t l i f ti th t l t t it ti th t h b i d b th i di id l
patent claims and (ii) determining whether the
claims map to an allegedly infringing process
or system
Valuation
that receives contextual information that relates to a situation that has been experienced by the individual;
a machine-learning component that processes the emotion information and the contextual information into
actionable emotion data, and
that outputs the actionable data, wherein the machine-learning component includes:
an emotion converter that receives the emotion data from the emotion data generator and that generates a
sentiment value that corresponds to the emotion data;
a contextual converter that receives the contextual information from the individual and that generates a
Valuation
a contextual converter that receives the contextual information from the individual and that generates a
context value that corresponds to the contextual information;
an action generator that, for each situation that has been experienced by the individual, generates a
hypothetical action that relates to the situation, wherein the hypothetical action is generated based on the context
value and the actionable data; and
an output component that outputs each of the hypothetical actions generated by the action generator; and
a human interface component that receives the actionable data from the output component and that displays
a human interface component that receives the actionable data from the output component and that displays
a user interface that receives input from the user based on the input received.
Patent Transformer:
https://www.researchgate.net/publication/342275960_PatentTransformer_A_Framework_fo
r_Personalized_Patent_Claim_Generation

21. ChatGPT for Patent Drafting

22. ChatGPT for Prior Arts & Licensing/Infringing Targets Search

23. AI x Blockchain Powered
SIAM
스마 무형자산 경영
Patent Evaluation &Valuation
(스마트 무형자산 경영)
플랫폼 소개
플랫폼 소개

24. SIAM 데모

25. 개별특허 품질 및 가치 평가
구글 특허 US10452978를 OpenAI의 ChatGPT
SIAM은 인공지능 기반의 품질 및 가치 평가를 통해
고품질/가치 개별특허를 찾고 경영할 수 있도록 한다.
구글 특허 US10452978를 OpenAI의 ChatGPT
아키텍처가 침해 한다는 사용증거 차트(EoU)
(Attention-based sequence transduction neural networks: Google)
구글 AI 특허에
대한 평가
Quality Score: 90%
Validity Score: 70%
Family Rating: BBB

26. 특허 포트폴리오 품질 및 가치 평가
삼성전자의 스마트폰/이어폰이 삼성전자 전 IP 센터장이 관계하는 NPE의
특허번호 품질지수(Qscore) 유효성지수(Vscore) 가치 ($)
삼성전자의 스마트폰/이어폰이 삼성전자 전 IP 센터장이 관계하는 NPE의
특허 포트폴리오를 침해한다고 소송에 사용된 특허들
특허번호 품질지수(Qscore) 유효성지수(Vscore) 가치 ($)
US8111839 99 59 841,180
US8254591 99 62 857,538
US8315400 98 44 718,860
US9124982 99 63 758,406
US9270244 99 64 1 952 392
US9270244 99 64 1,952,392
US9491542 98 56 881,898
US9609424 100 47 621,854
US10405082 76 45 719,030
US10966015 76 65 994,875
US10979836 100 40 589 401
US10979836 100 40 589,401
US11039259 99 43 1,319,117
US11057701 99 68 780,779
,
US11217237 69 59 594,501
US11244666 99 47 1,232,472
2:21-cv-00413 - Synergy IP Corp et al. v. Samsung Electronics Co Ltd et al.

27. 특정회사 전체 특허 포트폴리오 품질 및 가치 평가: LG 전자

28. Tokenization & Securitization of Real-World Assets Overview
Tokenization Securitization
Tokenization of real-world assets involves
converting assets into digital tokens
on a blockchain, offering numerous
Security Token Offerings (STOs) represent a new
way of securitizing real-world assets, providing
benefits over traditional Initial Public Offerings
benefits such as enhanced liquidity,
lower transaction costs, and increased
transparency.
benefits over traditional Initial Public Offerings
(IPOs) such as lower costs and increased
accessibility.
Asset-backed tokens are created by
tokenizing real-world assets, with various
categories and use cases, including real
t t t i t ll t l t
STOs involve a multi-step process, including
registration or seeking exemptions, and often
employ Special Purpose Vehicles (SPVs) to
tokenize assets
estate, art, intellectual property,
security and commodities.
These tokens bridge the gap between
tokenize assets.
These offerings can create both equity and debt
securities for asset-backed tokens, with platforms
g g p
traditional and digital financial markets,
enabling diverse investment
strategies, risk and return profiles, and
innovative financial products
supporting various token standards and ensuring
compliance with KYC/AML regulations.
Secondary markets for STOs provide liquidity,
innovative financial products.
As the market structure evolves,
intermediaries and market participants
Secondary markets for STOs provide liquidity,
while real-world asset STO valuations and
accredited investor involvement ensure
robustness. Various intermediaries, including
k t k d k ti i t di i l
must adapt to capitalize on the potential
of asset-backed tokens in both primary
and secondary markets, paving the way
for a more efficient and accessible
market makers and marketing intermediaries, play
a crucial role in the ecosystem. Smart contract
design enables automation and security in the
STO process, allowing for efficient tokenization
for a more efficient and accessible
financial ecosystem.
p , g
of real-world assets and opening new
investment opportunities.

29. https://docsend.com/view/9iamyunqix3byyy2

30. Security Token Overview
A security token refers to the tokenization and securitization of real-world assets using
Baxter Hines “ Digital Finance” Wiley A security token refers to the tokenization and securitization of real-world assets using
Distributed Ledger Technology (DLT), such as blockchain, to facilitate investment in
the economic value creation of these assets more easily and efficiently. Security
tokens provide digital proof of rights, including ownership, for various real-world assets
Baxter Hines, “ Digital Finance”, Wiley
tokens provide digital proof of rights, including ownership, for various real world assets
and validate their security.
Equity security tokens function similar to stocks on the blockchain, granting ownership
q y y , g g p
stakes to shareholders and providing dividends, profit sharing, or other interest. Debt
security tokens are supported by debt financial products and can be easily automated
using smart contracts, reducing payment times and operational risks. Revenue-
sharing security tokens belong to token types similar to stocks and leverage smart
contracts to enable smooth distribution of earnings, offering advantages to companies
reliant on profit-sharing ratios for various agreements. Overall, security tokens simplify
and streamline the investment process for various asset classes, reduce costs,
expand investor accessibility, and increase liquidity.
S it t k i t t diti l fi b t ti d i t
Security tokens innovate traditional finance by automating processes, reducing costs,
and enhancing functionality through blockchain and smart contracts. By digitizing
ownership records and transaction histories, security tokens simplify management
tasks and facilitate smooth asset transfers Sec rit tokens enable contin o s trading
tasks and facilitate smooth asset transfers. Security tokens enable continuous trading
without geographical or time constraints, accelerate transaction execution by
eliminating intermediaries, and provide interoperability between assets, enabling swift
processing of transactions and fostering creative financial solutions Furthermore
processing of transactions and fostering creative financial solutions. Furthermore,
tokenization allows for fractional ownership, providing investment opportunities to a
wider range of investors and promoting market liquidity.

31. KKR i t i t it fi h t d i t th ld f t k i ti b i t d i it fi t t k i d i t it
STO Cases: KKR - Tokenized Private Equity Investment Fund
KKR, a prominent private equity firm, has ventured into the world of tokenization by introducing its first tokenized private equity
fund. This STO, facilitated by Securitize, a leading transfer agent and broker-dealer/alternative trading system, involves tokenizing
a portion of the existing Health Care Strategic Growth Fund II (HCSG II) on the Avalanche blockchain. The fund, valued at $4
p g g ( )
billion, focuses on investing in innovative healthcare companies across various sub-sectors. HCSG II aims to generate strong
returns by investing in innovative healthcare companies in various sub-sectors such as biopharmaceuticals, medical devices,
healthcare services life science tools/diagnostics and healthcare information technology
healthcare services, life science tools/diagnostics, and healthcare information technology.
Through the tokenized feeder fund model, investors can purchase security tokens representing economic interests in the fund,
ti th i ht t t ti l t f th i f d Th i i b i f thi t k i d ff i h b i ifi tl
granting them rights to potential returns from the main fund. The minimum buy-in for this tokenized offering has been significantly
reduced to $100,000 from the traditional $5 million, allowing a wider range of qualified investors to participate.
After a lockup period of 12 months under the Regulation D securities exemption, KKR may choose to list and trade the tokenized
fund on the Securitize Markets ATS. This would provide additional liquidity and access to secondary markets for both accredited
and retail investors
and retail investors.
The target size of the tokenized fund is estimated to be between $30 and $50 million, although the exact figure remains
undisclosed. KKR's foray into tokenization represents a significant step toward exploring the potential of digital securities and
testing the infrastructure of blockchain-based solutions in comparison to traditional capital markets. The firm acknowledges the
transformative power of blockchain technology in digitizing operational processes and increasing ease of use for investors,
transformative power of blockchain technology in digitizing operational processes and increasing ease of use for investors,
emphasizing its importance in shaping the future of private markets.

32. STO Cases
SNK M t i l b l l d i l t i hi l d h d t li f 6 t f ll
SNK Motors is a global leader economic electric vehicle and has a product line-up of 6 types of small
cars.
Tu Meng Bi is a real estate development project in Palawan, which is an archipelagic province of the
Philippines.

33. STO Full Registration Exemption Method In the US
Regulation Amount per 1
year period
Investor Requirement/Manner of Offering Cost Transfer
Limitation
R D R l 504 $10 M N ifi t i ti F D/ l li it ti $50 000 1
Reg D Rule 504
Rule 506(b)
$10 M
Unlimited
No specific restrictions
Unlimited US accredited investors/up to
35 non-accredited investors
Form D/general solicitation
Form D/no general solicitation
$50,000 -
150,000
1 year
Rule 506(c) Unlimited
35 non-accredited investors
Unlimited US accredited investors
Form D/general solicitation
R S U li it d N dit d/ dit d Off h i d SEC $20 000 1 f l
Reg S Unlimited Non-accredited/accredited Offshore
Investors subject to local law (e.g.,
restrict investor in China )
no required SEC
registration/Private Placement
Memorandum (PPM) and
$20,000 -
$50,000
depending on
1 year for resale
into the
US/local law
Subscription Agreement/general
solicitation
complexity holding period
Reg A+ Tier 1 $20 M
Accredited and non-accredited investors,
as well as both U S and non U S
Form 1-A/general solicitation Higher than
Reg D
No holding
period
Tier 2 $75M
as well as both U.S. and non-U.S.
investors
For Tier 2: annual (Form 1-K),
semi-annual (Form 1-SA), and
current event reports (Form 1-U)
Reg D period
current event reports (Form 1 U)
to the SEC

34. https://docsend.com/view/9iamyunqix3byyy2

35. https://docsend.com/view/dyeahrc66ix3ud4d

38. Key Differences Between STO in Korea & USA
S it A t I th USA th H T t i d t d t i h th t ti lifi "i t t
Security Assessment - In the USA, the Howey Test is used to determine whether a transaction qualifies as an "investment
contract" and thus a security. It asks whether there is an investment of money in a common enterprise with an expectation of
profit predominantly from the efforts of others. If so, it's a security. South Korea has different criteria (narrower/stricter
p p y , y (
interpretation) for defining what constitutes a security.
Off i I th USA iti ff i b ith bli ( ff d t l i t ) i t ( ff d t ifi
Offering - In the USA, securities offerings can be either public (offered to general investors) or private (offered to a specific,
limited group of investors), each with its own set of regulations. In South Korea, securities offerings can only be public.
Issuance and Distribution - This refers to whether the issuance and distribution of the security tokens are managed by the
same entity or separate entities. In S. Korea, these processes should be separated.
Blockchain (DLT) - The type of blockchain utilized for STOs may differ between the two countries. In the USA, both public and
private blockchains can be used. In South Korea private blockchains can only be used.
p p y
Primary Market - In South Korea, primary market transactions for STOs are restricted to the Korea Exchange (KRX).
Secondary Market - In the USA, secondary market transactions for STOs are often conducted on Alternative Trading Systems
(ATS), which are regulated by the SEC. In South Korea, the secondary market infrastructure for STOs might be different.
( ), g y , y g

39. Tokenization, Securitization, and Monetization of Patents
Tokenization
Securitization
Tokenization of patents involves
converting IP assets into digital
tokens on a blockchain, offering
Securitization
Security Token Offerings (STOs) represent a new
way of securitizing patents, providing benefits over
traditional financing methods such as lower costs
, g
numerous benefits such as enhanced
liquidity, lower transaction costs,
and increased transparency.
traditional financing methods such as lower costs
and increased accessibility.
STOs involve a multi-step process, including
Patent-backed tokens are created by
tokenizing patent assets.
registration or seeking exemptions, and often
employ Special Purpose Vehicles (SPVs) to
tokenize assets.
These tokens bridge the gap between
traditional and digital financial markets,
enabling diverse investment
These offerings can create both equity and debt
securities for patent-backed tokens, with
platforms supporting various token standards and
C/
Monetization
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strategies, risk and return profiles,
and innovative financial products.
A th k t t t l
ensuring compliance with KYC/AML regulations.
Secondary markets for STOs provide liquidity,
while patent asset STO valuations and accredited
The monetization of patents through patent-backed tokens is
transforming the investment landscape, with platforms
enabling the creation and trading of both fungible and non-
As the market structure evolves,
intermediaries and market participants
must adapt to capitalize on the
potential of patent-backed tokens in
while patent asset STO valuations and accredited
investor involvement ensure robustness. Various
intermediaries, including market makers and
marketing intermediaries, play a crucial role in the
t S t t t d i bl
enabling the creation and trading of both fungible and non
fungible tokens (NFTs). NFTs represent unique assets and
can be fractionalized, allowing for more accessible ownership
and investment.
potential of patent-backed tokens in
both primary and secondary markets,
paving the way for a more efficient
and accessible financial ecosystem.
ecosystem. Smart contract design enables
automation and security in the STO process,
allowing for efficient tokenization of patent
assets and opening new investment
NFT liquidity is enhanced through DeFi solutions and
bonding curves for automatic market making (AMM), ensuring
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opportunities.
smoother transactions.

40. NFT based IP Monetization Platform Architecture
Auditing
Layer
Audit IP for finding and analyzing legal status, individual IP’s
cash flow generation history, potential financial and legal
risks, licensing diversification and strength of market position
Audit potential buyer’s or licensee’s KYC, financial credential,
conflict of interest and legal status
NFT Minting
Layer
risks, licensing diversification and strength of market position
Mint NFTs for representing IP rights (patents, copyrights,
trademarks) on a blockchain with storing the original IP data
Embed DID (Decentralized Identifiers) based SSI (Self-Sovereign Identity)
for a verifiable NFT authenticity that can be used for a NFT creator to
verify the authenticity of minted NFT by creating a verifiable credential
Layer in a centralized or decentralized storage
verify the authenticity of minted NFT by creating a verifiable credential
(carried with NFT) that proves NFT creator's identity
Securitization
Layer
Form a securitization pool of IP NFTs considering
IP type, portfolio, use cases and monetization
potentials; Provide group index and mint NFT-ST
Securitization
Layer
Comply lighter-weight security regulations such as
Regulations D, S, or A+ and/or Crowdfunding and/or
Regulation A for offering does not exceed $20 million
Layer
Valuation
potentials; Provide group index and mint NFT-ST
for representing the securitization pool
Layer Regulation A for offering does not exceed $20 million
in a 12-month period
Value based on experts’ view with consultation of (British/Dutch/ Value based on automatic DeFi price discovery
h i A t t d M k t M k (AMM )
Layer Vickrey/SMR/Radical) auction; Value based on IP valuation
(income/market/asset) methods
mechanism: Automated Market Makers (AMMs)
using NFT-backed fungible tokens and arbitrage process
Monetize through sales of NFT-ST security tokens; Monetize through IP NFT monetization DAO:
Monetization
Layer
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Monetize through primary/secondary marketplace: in-built smart
contract for the NFT should specify any sales/licensing
agreement in a legally appropriate way
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To encourage active engagement in the monetization
DAO, a utility based NFT, where the token acts as a
digital passport of the DAO membership is used

41. Open Innovation Patent Pools for
AI, Metaverse, Blockchain, IoT, Sustainability Convergence
Open Innovation Patent Pool DAO
Open innovation is a strategic approach that fosters
collaboration and partnership with external stakeholders to
create and implement new technologies products and
Utilizing patent pools in open innovation enables the
development of new technologies, products, and
services through collaborative R&D, access to emerging
technologies cost savings and reduced risks
Open Innovation Patent Pool DAO
An open innovation patent pool, formed
and operated as a Decentralized
Autonomous Organization (DAO),
create and implement new technologies, products, and
services. Unlike traditional innovation models confined within
company walls, open innovation promotes the sharing and
exchange of knowledge resources and expertise across
technologies, cost savings, and reduced risks.
By sharing patented technologies within specific
industries or technology areas, companies can
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leverages blockchain technology to enable
transparent, secure, and efficient
collaboration among members. In a DAO-
based patent pool, the rules and protocols
Convergence Open Innovation Opportunity
exchange of knowledge, resources, and expertise across
organizational boundaries.
Patent pool is a collaborative consortium where companies
strengthen their current market positions, diversify into
related markets, and expand into new markets.
based patent pool, the rules and protocols
for membership, licensing, revenue sharing,
and decision-making are encoded in smart
contracts, ensuring trust and autonomy.
Convergence Open Innovation Opportunity
AI Bl k h i
IoT
Patent pool is a collaborative consortium where companies
share patented technologies within a specific industry or
technology area, aiming to streamline the licensing process,
minimize transaction costs, and prevent legal disputes
Members of the patent pool can propose,
vote on, and execute decisions collectively
using a decentralized governance model,
which eliminates the need for a central
IoT
AI
Patent
Pools
Blockchain
Patent Pools
IoT
Patent
Pools
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related to patent infringement.
In the context of open innovation, patents are vital as they
which eliminates the need for a central
authority. The DAO's rules determine how
members can join, contribute patents, and
access shared patents. Smart contracts
f ilit t th li i f t t
Convergence opportunities
for innovation, growth, and
the development of
groundbreaking solutions
grant legal rights to inventors and protect their inventions.
Companies can license-in external patented technology for
new capabilities, license-out their patents to foster
facilitate the licensing of patents among
members, automating the process and
reducing transaction costs.
across various industries
Metaverse
Patent
Sustainability
Patent
collaboration and generate revenue, participate in cross-
licensing to decrease legal risks and costs, or monetize
patents by buying or selling them to enhance their
t h l i l t fit f d tili d
Revenue sharing can also be managed
through smart contracts, ensuring fair and
transparent distribution of licensing fees or
royalties among patent contributors.
Pools
Patent
Pools
technological assets or profit from underutilized resources.