The cost to digitize and fractionalize a patent can vary depending on a number of factors, including:
- The number of smart contracts required: Smart contracts are the code that governs the behavior of digitized patent on a blockchain (DLT). The more complex the patent portfolio, the more smart contracts will be required, which will increase the cost.
- The complexity of the diginomics model: The diginomics model is the design of the fraction economy, including the supply of fractions, the distribution of fractions, and the mechanisms for fraction holders to participate in governance. A more complex diginomic model will require more development work, which will increase the cost.
As a general rule of thumb, the cost to digitize and fractionalizing a patent will typically range from $50,000 to $300,000. However, the cost could be higher or lower depending on the specific factors involved.
Here is a breakdown of the typical costs associated with digitization and fractionalization:
- Legal and regulatory fees: $10,000 to $50,000
- Technology development: $20,000 to $100,000
- Marketing and promotion: $10,000 to $20,000
In addition to the initial costs of digitization and fractionalization, there are also ongoing costs associated with maintaining and operating a digitized patent. These costs can include:
- DLT fees: The fees associated with transacting the smart contract on a DLT
- Smart contract auditing: The cost of having smart contracts audited to ensure their security
- Ongoing maintenance and support: The cost of maintaining the digitized patent and its associated infrastructure
Overall, the cost to digitize and fractionalizing a patent can vary. However, the potential benefits, such as increased liquidity, fractional ownership, and improved transparency, can make it a worthwhile investment for some inventors and patent owners.