IP securitization converts rights and the income they generate into a security. The rights, or the royalty stream they produce, go into a compartment that Luxembourg law walls off from every other deal, and the note issued from it, under its own ISIN, is served by the contracted licensing income.
Intellectual property is often a company’s most valuable asset and its least financeable one. MTCM opens a compartment, ring-fenced inside one of its six Luxembourg SPVs, for the rights, or for the income they contract to produce; the note issued against them carries its own ISIN. The compartment can hold the rights themselves, or only the right to receive the licensing income while ownership stays where it is. The compartment stands on the Luxembourg Securitization Law of 22 March 2004; being bankruptcy remote, it insulates the rights from the owner’s insolvency. The platform takes its legal advice from GSK Stockmann, while PwC and Atwell audit it.
Held in custody, transferred or listed like any other security.
Segregated by law from every other transaction on the platform.
Protection runs in both directions.
The exposure leaves the originator’s balance sheet.
Names, marks and business identity, and the licensing income they produce.
Granted patents and the licensing arrangements built on them.
Publishing and recording rights, and the royalty streams attached to them.
Distribution and exploitation rights over identified productions.
Book, journal and catalogue rights with contracted royalty income.
Licensed software products and the revenue under existing licences.
Documented processes and formulations under confidentiality and licence.
Rights under franchise agreements, including brand use and system fees.
Domains, platforms and digital assets with documented ownership.
Contracted rights of use, where transferable under the applicable law.
IP securitization converts rights, or the income they produce, into a security. A Luxembourg SPV takes the rights, or the royalty stream, into a compartment ring-fenced from everything else it holds, and issues a note under its own ISIN, served by the contracted licensing income.
No. The compartment can take only the right to receive the income, leaving registration, control and enforcement with the owner. Whether the rights themselves transfer is a structuring decision, made at the outset.
Trademarks and brands, patents, music catalogues, film and television rights, publishing rights, software licences, know-how, franchise rights, domains and digital property, and contracted image rights where the applicable law allows transfer.
Chain of title across the relevant territories, registration and renewal status, the licence agreements producing the income, collection history, and any prior assignment or security already granted over the rights.
The consequences are set out in the terms of the note when the compartment is structured, including how reporting handles it and what the compartment does with any replacement licence. Termination rights are reviewed as part of the diligence.
Rights holders and catalogue owners seeking capital without selling, brand owners financing against licensing income, and the family offices and wealth managers that want royalty exposure in custody-eligible form.
| Rights transferred to the compartment | Only the income assigned | |
|---|---|---|
| Who is the registered owner | The compartment | The originator |
| Who can enforce against infringement | The compartment, or the originator under mandate | The originator |
| What the audit reviews | Chain of title and registrations | The licence agreements and payment history |
| Typical use | A clean sale of a catalogue | Financing without giving up control of the brand |
80+ active compartments · €2.5 bn+ assets structured. Indicative platform figures.