Blockchain-Based IP Monetization Model

Executive Overview

The AI Standard of IP Commercialization is a specialized framework purpose-built for Intellectual Property Collateralized Debt Obligations (IP CDOs and AI CDOs) within the global DeFi market in the AI era. It enables the financialization and monetization of intellectual property, including non-traditional, AI-generated, and hybrid human–AI assets—such as software code, creative content, trained models, datasets, prompts, and synthetic works—that conventional IP systems are structurally unable to process at scale.

While the American Standard of IP Commercialization governs formal, regulated IP Bonds for institutional capital markets, the AI Standard powers flexible IP CDOs and AI CDOs, unlocking decentralized liquidity for creators, startups, and AI-native innovators.

Core Essence of the AI Standard

AI CDOs: Commercial AI Training License by Design

By issuing AI CDOs, issuers automatically grant AI models permission to train on the collateralized IP, including commercial use.

This mechanism:

• Pre-licenses AI training on collateral IP
• Eliminates copyright infringement uncertainty
• Prevents litigation scenarios such as NYT v. OpenAI
• Establishes enforceable, on-chain AI–IP collaboration

IP CDOs: Non-Commercial AI Training License

By issuing IP CDOs, issuers grant AI models permission to train on collateral IP for non-commercial purposes only, while preserving commercial exclusivity for human or licensed use.

This model:

• Resolves copyright risk in AI training
• Enables controlled collaboration between creators and AI
• Protects economic rights while fostering innovation

Legal & Economic Foundation

The AI Standard provides a solution for lawful AI training without copyright violations through IP commercialization via IP CDOs and AI CDOs.

Under this standard:

• AI is recognized as a licensed economic participant within the DeFi environment
• AI transitions from a passive data consumer into a co-creator and co-owner of IP, governed by smart contracts

Structural Innovation: Alignment with IP CDOs & AI CDOs

Native Fit for Unstructured Debt

IP CDOs and AI CDOs are informal, flexible debt instruments without fixed maturity—making them ideally suited for fast-evolving AI assets.

Key advantages include:

• Tokenization and issuance within minutes
• No dependency on slow, jurisdiction-bound IP Offices
• Immediate liquidity through DeFi markets

AI as a Financial Actor

Under the AI Standard, AI in DeFi becomes a native financial participant:

• AI as Co-Investor (Algorithmic AI Agent / Bot): Acts as a perpetual holder within IP CDO / AI CDO smart contracts
• Algorithmic Optimization: Automatically trades, stakes, and reallocates exposure
• Valuation Signal: AI participation dynamically enhances real-time asset valuation

Operational Workflow

Tokenization

IP or AI-generated assets are registered on-chain via blockchain services.

Issuance

• AI CDO: Includes automatic commercial AI training license
• IP CDO: Includes non-commercial AI training license

Trading & Liquidity

Assets trade 24/7 in DeFi markets with real-time pricing via the Eurasian Standard of IP Valuation.

Default Management (Autonomous)

In the event of issuer default:

• Collateral automatically transfers to the platform’s AI Default Manager
• AI agent autonomously identifies new IP owners, executes marketplace sales, or issues defaulted bonds/CDOs
• No courts, no delays — algorithmic resolution only

Strategic Market Fit

The AI Standard is optimized for:

• DeFi ecosystems
• SMEs and startups
• Early-stage AI innovation

It enables:

• Instant IP licensing and collateralization
• AI-enhanced yields for investors
• Global, permissionless access to IP-backed finance

Strategic Outcome

The AI Standard of IP Commercialization completes a three-tier global architecture for the intangible economy:

• American Standard: Regulated IP Bonds for institutional capital
• Eurasian Standard: Real-time, consensus-based IP valuation
• AI Standard: Programmable AI training licenses via IP commercialization

Together, these standards bridge regulated finance, decentralized markets, and AI-driven innovation.

Conclusion

The AI Standard of IP Commercialization transforms the central challenges of the AI era—ownership, copyright, IP monetization, and AI training—into a scalable financial opportunity. By embedding AI training rights, co-ownership logic, and autonomous enforcement directly into IP CDOs and AI CDOs, it establishes a future-proof operating system for AI-native intellectual property finance.

The future of IP and AI is intelligently licensed, valued, monetized, and trained.

Victor Michelle

CEO, Eurasian Stock Exchange

Lead Presenter, Joint Research Proposer 

Co-Author & Co-Creator

IP Bonds® & Stock Staking®

victor.michelle.post@gmail.com

Telegram @ip_bonds | X @ip_bonds

Telegram @stock_staking | X @stock_staking

Natalie Michelle

President, Eurasian Stock Exchange

Co-Author & Co-Creator

IP Bonds® & Stock Staking®

natalie.michelle.post@gmail.com

Telegram @ip_bonds | X @ip_bonds

Telegram @stock_staking | X @stock_staking

Emilie Michelle | Elias Michelle