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IP-backed Securities

Definition

IP-backed securities are financial instruments whose value is derived from intellectual property assets. These securities represent claims on future revenue streams generated by patents, copyrights, trademarks, or other forms of intellectual property. They allow creators or owners of intellectual property to monetize their intangible assets by securitizing them and offering them to investors. The valuation and risk assessment of such securities depend heavily on the strength and projected earnings of the underlying intellectual property.