San Diego, CA… Royalties or revenue participation contracts may well become a standard means of investing in the revenue growth of companies now that the U.S. Patent Office has issued a Notice of Allowance of Claims on SINIPCO Pte. Ltd.'s U.S. patent application #20080109344, now allowed, which covers the company’s unique approach to financing and investing in 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.”
"There are hundreds of thousands of privately-owned, successful-companies throughout the world which will be pleased to trade a profit diminution, rather than sufferan 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 noted.
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's preference is to license government supervised exchanges to list and trade both royalties issued by individual companies as well as by royalty investment funds.
"This is a great opportunity for the exchanges to add hundreds and possibly thousands of new income-producing investment vehicles to their listings. Investors, investment bankers and brokers will all benefit," Lipper added.
"In the coming period, both individual and institutional investors are going to be attracted to less volatile financial instruments, especially those having the potential for increasing and frequent income distributions. Royalties are also attractive as it is generally thought to be a lot easier to predict revenue trends than future per share profit levels," Lipper observed.
"The new financial regulation legislation is also going to make the issuance and trading of royalties more attractive to many companies and exchanges," Lipper added.
Lipper, a seasoned Wall Street innovator, 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. His Forward Contract Exchange Company was the first firm to trade and make a market in stock index futures for the DJIA and other international stock exchange indexes. Lipper has been a member of the New York Stock Exchange as well as most of the regional U.S. stock exchanges, the Bangkok Stock Exchange and the New York Comex. Lipper believes that royalties will become a standard means of investing in the growth of companies and that exchanges and investors, as well as royalty issuers will all benefit significantly.
Arthur Lipper, who lives in Del Mar, CA, can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. and at 858.793.7100.
