How do we actually structure an open, free-market patent exchange?
(1) How would patent assets be placed on the exchange? (2) How would they be classified? (3) How many shares would be attributed to a given patent within a technology class? (4) How would we initially value them? (5) What market forces would affect value of the patent shares? (6) If I own a technology share (used interchangeably with patent share), what exactly do I own and what can I do with it? (7) What would incentive trading on the patent shares? (8) What would incentivize collaboration amongst market players?
In this post, I’ll be discussing (7) demand for trading shares.
What would incentivize trading on technology shares? What would peak a buyer’s interest to purchase shares?
1. Commercialization activity
Commercial activity of products and services associated with a technology class indicates that the technology class has market relevance and penetration potential, thereby increasing demand.
Commercialization activity also enables speculation regarding the potential success of the products and services associated with the technology class, thereby promoting trade activity.
Examples of commercial activity includes launches, improvements, and sales of products and services associated with the technology class.
Why would we tie share value to commercialization activity?
Tying the two enables a monetization system that promotes commercialization—this furthers the Founding Fathers’ intent behind the Constitution’s Patent Clause.
2. Licensing activity
If market players take a license to the technology class, this is the strongest indicator of market relevance and penetration potential for the technology class.
Moreover, if competitors are paying royalties into the technology class, then this would enable shareholders to earn a return on their shares, further increasing demand for the class.
Examples of licensing activity include licensing discussions amongst market players and litigation activity associated with patents in the technology class.