The Marx Bond is a newly developed fair deal structure for Internet Intellectual Property Asset Investment, Debt, and Profit Distribution. The financial and corporate structure includes bonds that are securitized to IP Cash Flow.
The new patent securitization structure and business process enables investors to participate in highly profitable IP assets, which are intangible assets, and though often extremely profitable, such asset value is often not included in accounting statements which often causes the under or over valuation of a company's financial position. The new IP structure is a straight-forward architecture that supports IP based business efforts to maintain aligned incentives with the inventor, the patent owners, the underwriters, litigation counsel, and the investors.
U.S. Patent No 7,139,732 ("Patent 732") is the first Internet patent to adopt the Marx Bond Patent Securitization Structure, and such was formally signed and filed with the state of New York at the Department of Law in New York City on April 25, 2008. $700 million of Bonds were issued under this Marx Bond private offering limited to accredited and sophisticated investors pursuant to SEC Act of 1933 Regulation D 506
Some inventors and patent owners have a very difficult time in monetizing patents efficiently and quickly. Often the difficulty is due to a poor quality financial corporate structure that must be tailored to meet the needs of intellectual property. Without a proper structure, investors, inventors, patent owners, litigation attorneys, and business development executives often have misaligned incentives, eventual work against each other with different goals, and in the end, the poorly organized team often earns much less revenue that the intellectual property opportunity presented.
Mr. Marx D., a descendant of Marks Marx, coined the phrase "Marx Bond" to commemorate the name of his great-great-grandfather's name, Marks Marx, and his never ending quest to make a fair deal.