1. IPR in Financial Markets
Dr. Recep Bildik
Borsa İstanbul
IPR in Financial Markets

2. 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

3. 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!

4. Growing IP Activity in Turkey
Domestic Patent Grants
2011 – rank # 17
2012 – rank # 15
2018 goal: Top 10

5. Government Support to Commercialization of IPRs
50% of earnings from
Licensing
Sale
Mass production and marketing
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.

6. Government Support to IPR Trading
National IP Strategy Document and Action Plan ( )
3rd 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”

7. 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"

8. 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
University Technology Transfer Intermediaries

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

10. 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

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

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

13. BIST IPR Market A membership based web platform. 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..)

14. 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.

15. BIST IPR Market Step by Step
Find
Match
Deal
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 (IoI)”
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
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 audit, legal and financial consultancy services. Members also benefit from low-cost services offered by our solution partner service providers.

16. Establishing an ecosystem – All together!

17. Several meetings were held with the stakeholders.
Road Map
Several meetings were held with the stakeholders.
Board of Directors decision July 2015
Market research in Turkey and abroad
Approval of CMB and TPI Dec. 2015
Technical specifications Dec. 2015
Membership contract and regulations Jan. 2015
Launch
End of 2016
Development
June 2016

18. Road Map – Activities Held
Workshops (9 meetings with stakeholders)
Introductory meeting and Working Group meetings
Meeting with legal experts and patent attorneys
Meeting with investors
Technical infrastructure meeting with TPI for data transfer and integration
Regulations
Decision of the Board of Directors (July 2015).
The approval and support of TPI were received (Dec 2015)
CMB’s approval was received (Dec 2015)
Membership contract and regulations were prepared. Legal opinion was received.
Marketing and Coordination
Patent exchanges, platforms and intermadiaries located in the U.S. were visited (Dec 2015)
domain name was registered.

19. Marketing and Coordination
Road Map – Activities Planned
Development started
Launch of the market: Memberships will start by the end of the 2016
Launch
Membership contract and regulations prepared in cooperation with stakeholders and legal parties should be submitted to the board of directors.
Regulations
Cooperation with EPO and WIPO
Support of TPI, TÜBİTAK, KOSGEB, the related Ministry etc.
Marketing and Coordination

20. Thank You… Recep.bildik@borsaistanbul.com www.bistozelpazar.com