A business unit of the Licensing Financials Division, the
Equity-IP Royalty Trust creates Trusts with which it develops royalty
payment through the funding of adopter-specific technologies which are
technologies forming the bases of conditional Technology Licence Agreement
conditioned upon technology development Effectively, the business unit
creates and uses Trusts to accumulate funds to finance technology
development.
However, the Licensing of the IP that underlie technologies developed by
Investment Trust entails a different set of considerations from the generic
Technology-IP licensing: The use of Trusts to develop the royalty is also
based on the preference of the Trust settlors to become equityholders of the
licensee adopter.
Operationally, the Trust is granted Exclusive Transferable Licensing Right by the
Developer while the IP ownership remains with the Developer entity. The
exclusive Licensing Right, however, is then transferred to the
licensee-adopter in exchange for equity in the adopter. Effectively the
adopter is automatically granted exclusive Licensing Right, subject to any
other prevailing stipulations of the agreement. The equity is invariably
distributed to the beneficiary investors and the Trust dissolved
subsequently.
Consequent on this mechanism, the business unit also enables
companies seeking to operate a specific technology but of limited funds,
also be availed with the technology for an irrevocable signed Technology
License Agreement.
Invariably, the licensee-adopter pays royalty to the
Developer under the royalty servicing agreement of the firm, and the firm in
turn relays the royalty to the Developer entity.