IP Stock Market Index

Shannon Bayes has created a division called Rocket Science Capital Analytics. RocketCap focuses attention on quantitative aspects of investing and intellectual property.

RocketCap is pleased to announce the RocketCap Intellectual Property Stock Index (RIPSI).  RIPSI is the first index comprised of firms whose IP value is directly priced in real-time by the stock market.

Constructing a market index for IP value is quite difficult, since all transactions are private, so there is no market transparency and certainly no liquidity. Even auctions are illiquid. Others have constructed stock indexes for IP based on qualitative measures of public firms’ actions at the USPTO to support their patents and R&D spending, among other accounting parameters. However, RocketCap’s insight opens the door to a direct market price measure of IP value for certain firms. 

RocketCap’s innovation is that RIPSI is comprised of a number of publicly traded “pure play” IP firms. These are public firms with businesses consisting almost entirely of out-licensing their own IP. Thus, the value of the firm is the market value of all their IP, which is directly available from market prices. To our knowledge, no one has constructed a stock market index based on pure play IP companies.The RIPSI firms sell primarily to design engineering firms in the electronics, mechanical, industrial and architectural industries. Here is the list of RIPSI firms:


MIPS Technologies, Inc. MIPS
CEVA, Inc. CEVA
Tessera Technologies TSRA
VirnetX Holding Corp. VHC
Acacia Research Corp. ACTG
Mentor Graphics Corp. MENT
Rambus, Inc. RMBS
InterDigital, Inc. IDCC
Cadence Design Systems, CDNS
Synopsys, Inc. SNPS
Dolby Laboratories DLB
ARM Holdings, plc ARMH
Autodesk, Inc. ADSK


All these firms are traded on NASDAQ, except VHC traded on AMEX and DLB traded on NYSE.

More details about RIPSI are given here:


RIPSI is available for licensing.