IPR in Financial Markets Dr Recep Bildik Director

IPR in Financial Markets Dr. Recep Bildik Director

Agenda • IPR & Financial Markets • Growing IP Activity in Turkey • Government Support to IPR Trading • IP Market Structures • International Patent Markets • Benefits of an IP Market under Borsa İstanbul • Borsa İstanbul IPR Market • Establishing an ecosystem

IPR & Financial Markets […nearly 80% of the value of a U. S. publicly-traded company now comes from intangible assets. …the largest component (or subset) of intangibles is intellectual property. ] 30 years ago Now! 32% 84% 68% Tangible Assets 16% Source: Ocean Tomo Intangible Asstes

Growing IP Activity in Turkey Patents 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 Utility Model 3000 2500 2000 Domestic 1500 Domestic Foreign 1000 Foreign 500 0 2005200620072008200920102011201220132014 Industrial Design 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 Domestic Patent Grants Domestic Foreign 2011 – rank # 17 2012 – rank # 15 2018 goal: Top 10

Government Support to IPR Trading 50% of earnings from a) Licensing b) Sale c) Mass production and marketing d) Applying in production process and sale of technologies depending on Patents and Utility Models are exempt from corporate tax. Valuation report required! Cost, Market, Income based valuation.

Government Support to IPR Trading National IP Strategy Document and Action Plan (2015 -2018) 3 rd Goal: “Enhancing mechanisms for commercializing IPRs by developing the infrastructure for market perception and value creation” “To ease commercializing inventions … an IP market will be established”

IP Market Structures IPR Owner: • Can produce the technology by own • Can sell the IPR • License IPR to potential producer of the technology Source: Final report for EU Tender "Creating a financial market for IPR"

IP Market Structures Actors: • • • Patent Licensing and Enforcement Companies (PLECs) Institutional Patent Aggregators/IP Acquisition Funds IP/Technology Development Companies Licensing Agents Litigation Finance/Investment Firms Patent Brokers IP-Based M&A Advisory IP Auction Houses On-Line IP/Technology Exchanges/Clearinghouses IP-Backed Financiers Royalty Stream Securitization Firms Patent Rating Software and Services

International Patent Markets IP Based securitized Markets: Standardized IP Contract Markets: Bileteral Contract and Auction Based IP Markets: IP Transaction Platforms:

Benefits of an IP Market under Borsa İstanbul (BIST) Stimulate innovation and technology Contribute technology oriented growth Secure inventions to economy Contribute to IP awareness Enhance corporate balance-sheets and boost market values Confidence to Borsa Istanbul as an market operator BIST Private Market integration

BIST IPR Market A web- and member-based private market place which provides IPR owners and potential investors with IPR investment opportunities through o Sale of IPR’s o Licensing agreements o Liquidity programs for IPR sale and licensing agreements

BIST IPR Market: Tech Flow Tech Needs IP Providers Investors Tech Offers • Technology Offers include patents and utility models • Technology Needs are requested by investors to foster demand based R&D activity

BIST IPR Market o A membership based web platform. o Members can be: • IPR owners (Academicians, scientists, technology firms, startups, SMEs, universities. . ) • IPR investors (Technology firms, IPR funds, Large and multinational corps. ) • Brokers and service providers (TTO’s, patent attorneys, audit and consultancy firms. . )

BIST IPR Market: Benefits All Participants can benefit from: • Virtual data room: Document management, due diligence. . • Virtual deal-room: Instant messaging, negotiations. . • Confidentiality: All communications and shared documents are encrypted.

BIST IPR Market Step by Step Find the counter party you are interested in from the suggestion list or search engine. In order to contact the counter party directly, send an “Indication of Interest (Io. I)” Match Upon acceptance of your Indication of Interest by the counter party, you will be accredited to get access to more detailed information. You can start using the secure “Data and Deal Room” for due diligence, document management and negotiations Deal Upon agreement of both parties on the terms and conditions submit an electronic “notification of agreement”. In this process, intermediaries and service providers provide professional brokerage, independent

Establishing an ecosystem – All together!

Thank You… twitter. com/bistozelpazar www. youtube. com/bistozelpazar www. facebook. com/bistozelpazar www. bistozelpazar. com info@bistozelpazar. com