CHICAGO, March 27, 2013 /PRNewswire/ -- Intellectual Property Exchange International, Inc. (IPXI), the world's first financial exchange for licensing and trading intellectual property (IP) rights, today announced that the U.S. Department of Justice (DOJ) Antitrust Division has concluded an eight-month business review of the Exchange and issued its Business Review Letter (BRL), highlighting many innovative and efficient aspects of the IPXI licensing model.
The Exchange initiated the BRL process, while not required for IPXI to launch, to provide certainty to its members, market participants and prospects that the model that IPXI has developed provides efficiencies to the market and does not warrant enforcement action by the DOJ. In addition to noting many beneficial characteristics of the IPXI model, the DOJ also commented that there were three areas which it could evaluate only when put into practice.
Under the Department's BRL process, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the Division currently intends to challenge the action under the antitrust laws. The Department stated that, "...though the proposal could potentially produce certain efficiencies," it "declines to state its enforcement intentions" at this time.
IPXI President and Chief Executive Officer Gerard Pannekoek said: "We believe this letter from the Department of Justice confirms our long-standing view that IPXI is innovative and promotes efficiencies. With this review complete, we anticipate announcing very soon the official launch of the marketing period for our first offerings that will pave the way for trading on the Exchange."Pannekoek added: "While we recognize that our market model is new and innovative, and may be difficult to predict with precision, we are gratified that those few practices that the Department identified as potential 'risks' are largely practices in which IPXI will not engage. We are confident that when our Exchange is in full operation, we will meet the most stringent of any test under the competition laws."