The U.S. Patent and Trademark Office has allowed a patent application submitted by a Del Mar man that says he "may make royalties or revenue participation contracts a standard means of investing in the revenue growth of companies."
Arthur Lipper, international investment banker and chairman of SINIPCO Pte. Ltd. (Singapore), said, "Now SINIPCO licensed stock and other exchanges, through their members, will be able to offer the owners of businesses, ranging from high potential early stage to established and already successful, a means of attracting investor's capital without the need to sell equity-related securities."
Royalties or revenue participation contracts are contracts between parties requiring the payment of a negotiated percentage of revenues for an agreed period of time.
Royalties can be transferred subsequent to original purchase either on an exchange, through Over-the-Counter (OTC) dealings or in transactions negotiated directly between parties, which may include the services of a broker.
Lipper said in a news release: "There are hundreds of thousands of privately owned, successful companies throughout the world which will be pleased to trade a profit diminution, rather than suffer an equity dilution as the price paid for additional capital. The exchanges and their members will also be significant beneficiaries of this now patent-protected process."
Lipper is the inventor of the Fair Revenue Participation Contract and Exchange approach to using and trading of royalties. He has also been responsible for changing the performance focus of many mutual fund managers through his weekly distributed Lipper Mutual Fund Performance Analysis as well as having filed the first stock index fund prospectus with the SEC. He can be reached at
and (858) 793-7100.