Intellectual property and royalty management has become a Luxembourg specialty.
Indeed Luxembourg is an extremely favorable legal and fiscal environment for artists, writers, companies, inventors and engineers to create, maintain and domicile their Intellectual property rights in a Luxembourg entity which will be managing their royalty income.
Some promoters are also using Luxembourg securitisation entities. The rationale for such securitisation lies in the opportunity issuing a note, a bond or a certificate representing the future cash flow linked with the IPR and obtaining the NPV (Net present value) of such future income streams today. Transforming the future income streams into an immediate cash flow by selling to third party investors part of their future rights.
Such Note can also be tokenized and sold/exchanged on the blockchain. In the case of tokenization, the Luxembourg SPV will issue tokens linked directly with the licenses, patents, trademarks, brand or author’s right. Investors would subscribe into the SPV in order to obtain the dedicated tokens. The Distributed Ledger Technology has become viral these last years in Luxembourg and a proper management of intellectual property on the blockchain is now considered as a must have for promoters and investor worldwide.
In order to find out more about the tokenization of Intellectual property please contact us
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