IPXI

About IPXI

Intellectual Property Exchange International (IPXI) was the world's first financial exchange for licensing and trading intellectual property (IP) rights. Headquartered in Chicago, the company was co-founded by Ocean Tomo LLC, a merchant bank, and led by President and CEO Gerard Pannekoek, who had prior experience as president and COO of the Chicago Climate Exchange. Pannekoek's background in creating and managing the first market for trading greenhouse gas emissions was instrumental in developing the framework for IPXI.

The exchange launched in 2012 after completing a $10 million funding round from investors including CBOE Holdings (parent of the Chicago Board Options Exchange) and Royal Philips Electronics. IPXI's business model was centered on creating transparency and efficiency in the IP licensing market, which has traditionally been characterized by costly and opaque bilateral negotiations. The company's clients were IP owners, such as corporations and research universities, and potential licensees who could acquire rights without direct negotiation. Its founding members included prominent organizations like Ford Global Technologies, JPMorgan Chase, Philips, Sony, and Hewlett-Packard.

IPXI's core product was the Unit License Right (ULR) contract, a standardized, non-exclusive license right that was tradable on its platform. These contracts allowed the buyer to use a specific unit of a patented technology, facilitating a more straightforward way to monetize and access innovations. The first offerings on the exchange included a portfolio of OLED technology patents from Philips and prepaid stored value card technology from JPMorgan Chase. Despite initial support and a membership base that grew to over 70 firms, IPXI ceased operations in March 2015. The closure was attributed to insurmountable obstacles, primarily the reluctance of potential licensees who preferred litigation over participating in a transparent, voluntary licensing marketplace.