Create an ILO: Getting Started Guide

What is it?
The ILO is a way for companies to license the technology and processes that underpin the product or service that they are releasing in order to start raising money to aid the development of the product.

By submitting an ILO online at Imaginot ILO Market, people who wish to have early access to your firm in terms of financial support and a relationship going forward can do so.

What is in it for my firm?
Money. You set the target, you create your product profile, and then you promote it. Unlike crowdfunding sites, we can allow you to use the funds that you receive immediately for legal or accounting purposes, or every two months in the form of a disbursement. In that way, although your ILO may last up to a year, you can start to use the money that you receive literally right away. You also pick up a team of fans that want to see you succeed as much as you do.

Are there any strings?
For the first year after you receive funds, there are no strings. After one year, you start to accrue royalties to pay your licensees based on the percentage that you commit to up front. The royalties only start to accrue after your product is put on the market.
After two years, you will need to announce a buyback date. On that buyback date for the signup fee, you will need to issue stock that has a value of the signup fee for the licensees.

How can I attract licensees online?
The first and most important way is to have an innovative, quality product that is something that people will want to invest in.
After that, traditional promotion techniques will work. As for levers that you can use on our site, we have three:

1. Setting your buyback percentage at an attractive rate
2. Setting your royalty rate at an attractive rate
3. Offering rewards to licensees either up front or as an update.

How much do you charge?
Cash – 5 Percent of the License Fees you receive
License/Stock – 2.5 Percent of the overall buyback percentage
Any Money Transfer Fees to your Account

How Does the Process Work?


1. You Submit an ILO
2. When a licensee pays for a license, they receive a receipt promising them:
A. Co-creator rights- (not inventor or trade secret rights)
B. Right to be a distributor
C. Right to applicable royalties and buyback.
3. We then send you a license agreement that you will need to sign and mail to your licensee.
4. As soon as they have received the license agreement, you can access your funds for legal or accounting purposes. You then receive a payment every two months as signup fees accrue.
5. After one year, if you are shipping your product or selling your service, you start tracking royalties and make payments on a quarterly basis.
6. After two years, you will announce your buyback date to issue equity with a value that pays back the signup fee that the licensee made.