February 20, 2018
Smartillions blockchain for R&D unites patent holders, researchers and institutional investors
Smartillions will develop an R&D blockchain in cooperation with the Fraunhofer Blockchain Lab in Germany to create rewarding relationships between patent holders, researchers and institutional investors.
By means of smart contracts on the R&D blockchain, companies can either invest directly in R&D projects at participating research institutes or access institutional funds in exchange for pre-negotiated success fees. This enables a company to collaborate with teams that work exclusively on their behalf to conduct effective research of an entire market and then develop new technologies for the benefit of the company — without assuming 100% of the financial risks that are associated with large R&D projects. Likewise, institutional investors have the assurance that they are investing in projects alongside major corporations with global expertise in their industries. Investors do not only have the advantage of accessing a diversified R&D portfolio with a large profit potential and the security of underlying patent rights but also the liquidity of an asset that can be easily traded on the blockchain.
“The R&D blockchain allows companies to potentially secure many new technologies while sharing risks and rewards of large research projects with institutional investors,” says Smartillions’ chairman Ashkon Cyrus who is also a California patent attorney and founder of patent law firm Select Patents.
Smartillions launched a consortium of institutional investors and companies that are interested in obtaining inventions through dedicated R&D projects by qualified outside researchers and corresponding patents protecting these inventions. The R&D blockchain is intended to incentivise not only investors but also research institutes and their teams by offering them rewards for each grant of a patent that meets the objectives of a contracting company.
In the past, investors had a choice of numerous patent funds for an opportunity to receive a dividend from patent acquisitions. However, returns from such investments required costly and lengthy litigation and often resulted in a loss for investors from unsuccessful lawsuits. The R&D blockchain is different because each smart contract is based on pre-negotiated terms between researchers, investors and one contracting company - before a patent is granted. These exclusive relationships are also more cost-efficient since teams in companies and at research institutes can work together on the joint goals of one company instead of competing with each other in a race for patent filings.
Smartillions intends to develop the R&D blockchain into a fully automated global trading platform with a stable unit of exchange backed by patents, connected through a protected network with end-to-end security for all participants.
Smartillions initiated a blockchain for R&D to assist companies with patent portfolios, reward institutional investors and incentivise researchers who contribute intellectual property. Smartillions also allows entrepreneurs to build businesses around a company’s products and services and to help monetise their patent portfolios in order to create mutual benefits and opportunities. Smartillions developed a stable unit of exchange that facilitates global trading by automatically monetising underlying patent assets through institutional investors when supply exceeds demand, and vice versa.
About Fraunhofer Institute for Applied Information Technology FIT
Project Group Business & Information Systems Engineering
The objective of the Project Group Business and Information Systems Engineering of Fraunhofer FIT is the synergetic linkage of research, application and education based on the latest scientific and practical knowledge. Fraunhofer FIT develops holistic solutions at the interface of Financial Management, Information Management and Business and Information Systems Engineering, which are focused on the following principles: innovation, interdisciplinarity and sustainability, value based management and the integration of risk and return management. Clients benefit from Fraunhofer FIT’s vast knowledge in disruptive technologies, such as IoT and blockchain.
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The R&D blockchain allows companies to potentially secure many new technologies while sharing risks and rewards of large research projects with institutional investors.