An IPS can be considered as a fractional ownership of Intellectual Property, with a particular focus on Royalties payment right.

Investopedia defines a royalty as:

“A payment to an owner for the ongoing use of their asset or property, such as patents, copyrighted works, franchises, or natural resources. The legal owner of the property, patent, copyrighted work, or franchise receives a royalty payment from licensees or franchisees who wish to make use of it to generate revenue. In most cases, royalties are designed to compensate the owner for the asset’s use, and they are legally binding.”

The concept of a royalty payment is nothing new – they have been used in the music and film industries for decades now. Yet most people don’t consider yet that a royalty is actually a security. IPSe is active to gives to the owner certain rights.

Previously it has not been possible to trade these rights in their current form, IPSe enables the creation of an Intellectual Property Security representing that right called an IPS.

The IPS itself can then be traded on a stock exchange that accepts IPS.