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Introduction

Introduction

"Knowledge is power", the adage from Francis Bacon, the British philosopher of 16th-17th century, is more self-evident than ever before in its meaning in global information and commercial society of today. The Hong Kong Intellectual Property Exchange (HKIPX) offers you Midas touch to convert your "knowledge" into personal wealth. Inventions, literary and artistic works, trademarks and brands, collectively known as the wisdom of mankind, are indeed a huge "gold mine". Unfortunately, its value has been historically ignored or undervalued.

HKIPX has made ready a marketplace for IP holders to access capital markets through its experts with decades of experience in the industries of intellectual property, finance and capital markets. To do this, HKIPX is offering three major trading engines with different functionality to buyers and sellers of intellectual properties: 1) Intellectual Property Flea Market, 2) Financing Platform for Intellectual Property Project and 3) SIPP trading Engine. The following section highlights SIPP Trading Engine:

Intellectual Property Concept 101

Besides the traditional contents of patents & technology, trademarks and brands, copyrights and cultural assets, intellectual property goes well beyond to include many more in the intangible assets. Intellectual property covered in this section will focus the following concepts:

Patents and technologies: inventions, utility models, industrial designs, technical secrets and know-how, business models and industrial resources, etc.

Copyrights and cultural assets: acrobatics, architectural design, art works, computer software, dance, drama & opera, folk literature, literary works, movies & TV programs, music, oral literature, photography, technical drawing, theater and opera, written works

Trademarks and brands: 3D trademarks, alphabetic marks, color composite marks, graphic trademark, numeric marks, word marks, other composite marks

SIPP Trading Engine

SIPP is designed to meet the challenges of dividing intangible assets into standard and tradable units that demand large liquidity and investment of over USD $25 million. The cost of full ownership is so high that it will be difficult to transfer to just one or a few investors. It is then designed to reduce cost of the intellectual property users, and effectively turn intellectual property into productivity. It is also designed to attract public participation in this transformation and further benefit and promote innovation and invention. Therefore, the intangible assets are unitized, offered to a larger group of participants and to be traded on the Exchange Platform by operated by the Hong Kong Intellectual Property Exchange, Ltd.

SIPP Contract Offering Process

 

The offering process of SIPP.

1. Submission. Licensor submits public listing application to HKIPX. HKIPX selection committee accepts this application and completes a preliminary review on qualification of licensor and its proposed public listing products.

2. Analysis. HKIPX first evaluates the licensed brand. HKIPX Selection Committee conducts due diligence and audits the application. After passing the examination of Selection Committee, the application is forwarded to the HKIPX Executive Committee. The HKIPX Executive Committee discusses and reviews the application of licensing brand and then recommends the application to the HKIPX Board of Directors for approval.

3. Document Drafting. After the application is approved by HKIPX, brand UIPR Sponsor negotiates with Issuer and finalizes the exclusive license agreement. Sponsor and Issuer then enter into "Sponsor-Issuer Exclusive License Agreement." HKIPX composes and drafts the offering memorandum. HKIPX introduces the offering plan of memorandum to some investors and collects feedback information from these investors.

4. Road Show. HKIPX releases the offering memorandum to some subscribers before the road show so that investors have the opportunity to see and understand the relevant contents of the offering memorandum before meeting. Road show methods include one-on-one purchaser meetings and web conferences to the Subscriber (trading members and Operational Users). By road show, subscribers will provide different price preferences, circulation acceptance and recommendations of the prospective product. Meanwhile, HKIPX collects subscription feedback and subscription information. HKIPX then makes the appropriate changes and adjustments to the offering memorandum based on feedback.

5. Closing. HKIPX Executive Committee reviews the road show feedback and modifies the offering memorandum. HKIPX Executive Committee will complete a revised, upgraded final draft memorandum issued and submitted to the Board for approval. After Board approval, the final draft offering memorandum will be published.

6. Trading. HKIPX members subscribe SIPP units. Meanwhile, HKIPX open secondary market of trading platform for different investors to trade SIPP units.

SIPP Subscription Process (the buyer)

Step 1, Login to the SIPP trading engine of Hong Kong Intellectual Property Exchange;

Step 2, Visit the SIPP Product listing page;

Step 3, Select the SIPP product and enter the product transaction page;

Step 4, Enter the units of the SIPP you want to subscribe;

Step 5, Make payment for your subscription;

Step 6, Complete your subscription online, the HKIPX will update your subscription data daily.

Trading Description

Upon completion of SIPP subscription, the HKIPX will update price changes everyday, showing the loss and gains of subscribers. Subscribers may choose to buy and sell at any time.

Platform charges

Platform 3% transaction fee charged for unilateral transactions.

Trading and settlement currency

HK dollars