ICO Alert Quick Facts
- Second round of ICO ends on December 14, 2017
- Ranked as a top 10 ICO by Bill Carmody of Trepoint, via Inc.com
- The platform and LOCIcoin connects inventors, investors, and product developers
- Over 7,000,000 tokens sold already with 700+ contributors
- 1048 Loci per 1 Ether contributed
What is Loci?
Loci is on a mission to revolutionize the way the world invents with its platform for intellectual property (IP) discovery and mining. We are tackling the wasted potential in global innovation due to the risky, convoluted, and costly patent process that the favors the few. Loci will decentralize the invention process and empower anyone with a good idea with its patented technology.
— John Wise, CEO
Q&A with John Wise, CEO and Founder of Loci
ICO Alert: How does the LOCIcoin token function within the platform and why is it needed?
Loci: LOCIcoin is a true utility token and is the fundamental asset that fuels the Loci ecosystem. There are several utilitarian use cases: 100 LOCIcoin can be used to access the full feature set of the InnVenn product, LOCIcoin is required to stake inventions on the blockchain, LOCIcoin is also the medium of exchange for the buying and selling of IP assets including bids placed on existing patents. Over time as the platform and volume of transactions exchanged grows, LOCIcoin can become the standard valuation metric for all of intellectual property, an internationally recognized asset class.
ICO Alert: According to your whitepaper, 10% of the funds reserved for Loci will be dedicated to legal affairs and advocacy. What do you say to potential investors who may be concerned that amount may not be sufficient in IP legal costs?
Loci: This is regarding 10% of the funds from the token sale. Much of that is around the legal structure for the non-profit, as for this expense it cannot come from the for-profit. The IP related legal expenses will be covered by the for-profit business, which is going to continue raising funds through traditional venture capital. It’s all a bit complex from a legal structure perspective, but there are substantially more funds allocated to supporting the legal effort.
ICO Alert: How does the company plan to navigate the complex IP laws of countries other than the U.S. where there are also high rates of innovation?
Loci: We are currently speaking to, and in some cases even working with Nation States. You are absolutely right, there are many nations with very very bright and capable people that do not have much opportunity to reap the rewards for their innovations. In our eyes, countries like India are prime to be improved. India has some of the brightest minds in the world, widespread Internet connectivity, and yet an extremely low rate of patent filings. Their legal system just isn’t supportive enough of the IP process.
Most of the time, lobbying to change a law is a very expensive and cumbersome process. This will be as well, however, in this case we need to lobby to get the rest of the world to agree on the existing standards that are already in place. The USPTO and PCT laws are already revered as the benchmark. It will not come as a large expense or difficulty for those nations.
ICO Alert: What sets Loci apart from other blockchain-based intellectual property solutions that have been proposed or, in some cases, have already completed an ICO?
Loci: I am unaware of any other solutions that address intellectual property the way we do. Some address databasing patents on the blockchain, which is unrealistic due to size. Some have addressed copyright like Steemit, who we believe has done a great job, but has no real exchange platform. Keep in mind, we’ve been around for quite some time, and have connected with most of the major players in the IP industry.
Additionally, our products have already been developed. We are not just a whitepaper like so many projects.
ICO Alert: Has the United States Patent and Trademark Office (USPTO) expressed any interest in the Loci platform? Alternatively, has Loci considered collaborating with the USPTO?
Loci: Yes, we have submitted several Proposals to USPTO. Several USPTO employees have advised in elements of the Loci platform. Also, the State of Virginia (where USPTO is located) is an equity investor in Loci through CIT.
ICO Alert: What support does Loci offer to those who wish to pursue an infringement complaint? Does that support apply to cross-border complaints?
Loci: This is completely out of Loci’s hands. Today, this process works through a patent litigation attorney and will continue to in the future.
ICO Alert: How far along is the project today and when can contributors expect to use the platform? What does the roadmap look like for the rest of 2017 and 2018?
Loci: The platform is currently fully functional, but due to U.S. securities laws, we cannot discuss the roadmap right now. Remember the fourth pillar of the Howey test is “The expected increase of value by the actions of a third party.”
ICO Alert: As a non-Loci question, we like to ask for unique predictions for the ICO and cryptocurrency space in the future. Where do you see both in the next 3–5 years?
John Wise: ICOs are a great example of how technology can open up opportunities for the masses to participate in something that has traditionally been limited to the financial elite. Though the opportunity brings great risks, as many ICOs will likely end up with people losing their hard earned money, I believe regulation should and will play a significant role in limiting the number of suspect ICOs over the next few years. We are starting to see the very beginning of the potential of cryptocurrency in its applications and value.
That being said, I think it’s important to reflect on history if we’re going to attempt to predict the future. Every industry has started with a boom in the underlying infrastructure. Then the transactions and assets take the market by storm. I believe we are all being a bit naïve here assuming that the protocols will remain as the stores of value, or as the main market share. You don’t think of Verizon or ATT as being the leaders of the Internet. Or the power line manufacturers as being the leaders in the electrification of the world. The real industry leaders are always those in the assets.
The ICO will be hosted in four rounds as follows:
The first round was exclusive to participants who pre-registered before the ICO began. According to the team, the base rate was established as the price to access the full feature version of InnVenn, the patent search platform ($249.99 or 100 LOCIcoin). The three days prior to the beginning of the ICO were used as a moving average to establish an Ether price when calculating the Ether : LOCIcoin conversion rate.
There is a $19,000,000 hard cap for the ICO and all rounds will begin at 00:00 UTC. Rounds 2–4 have equal caps and if the cap for a round is hit prior to the end date of the round, the next round will begin immediately. There is a minimum contribution amount of 0.1 Ether per contributor and there is no maximum contribution amount. The LOCIcoin team has stated in their FAQ that “LOCIcoin will be available on exchanges after the token sale is complete. Loci can not comment on when exactly and where.”
Token Distribution Information
Loci tokens will be distributed to contributors within 7 days after the end of the ICO. There are a total of 100,000,000 LOCIcoins being minted during the ICO, and no further tokens will be created after the ICO. There are a total of 50,000,000 LOCIcoins available for purchase across each round of the ICO. Any unsold tokens will be frozen for four years, with 25% of those unsold tokens becoming available every year for the purpose of growing the ecosystem.
The total token amount (100,000,000) will be allocated as follows:
50%: Allocated to launch supporters
34%: Reserved to purchase IP and Reward Platform Users
11%: Team, advisors and partners
5%: Non-profit fund
The team has specified that in order to contribute, you must sign up for the token sale by registering on the Loci website. In the registration, you will need to specify which Ethereum based wallet you will be contributing Ether from. As long as it is an ERC-20 compatible wallet, like MetaMask or MyEtherWallet, your contribution wallet address is where you will receive your LOCIcoin upon distribution after the token sale. Do not send from exchange wallets, like Coinbase, Kraken, or Bittrex, and do not send from Jaxx or multi-signature wallets.
All outstanding LOCIcoin will be managed by the Loci Foundation. Its primary functions will be to purchase or license inventions, facilitate an exchange of the LOCIcoin for inventions, and oversee the distribution of tokens to nonprofit groups and strategic partners who promote innovation. The Loci Foundation will also serve as the point of contact to report any bugs or vulnerabilities discovered in any of the products Loci offers. The discreet reporting of bugs will be rewarded in LOCIcoin and the amount will be determined based on the severity of the bugs discovered.
Use of Crowdsale Proceeds
40%: Product development
35%: Marketing and operations
10%: Legal affairs and advocacy
10%: Intellectual property services
5%: Security and audit
John brings a very diverse background to the Loci team. For more than 15 years, he worked as a mechanic, crew chief data engineer and team manager for some of the top teams in American racing. He witnessed hundreds of racing innovations and saw how difficult the patent process was first hand. He won several championships during his tenure. John has extensive experience working with some of the largest patent holders in the industry as well as expertise in aerodynamic engineering and data analysis.
Brian brings a purpose-driven leadership to the team and is a huge advocate of the company’s mission to empower inventors and innovators. Brian has a diverse experience and expertise in the areas of strategic partnerships, business development, and operations to the team. He is an alumnus of University of Illionis at Urbana-Champaign with dual B.S. degrees in finance and accountancy. He has worked in a wide range of large companies and industries, including Johnson & Johnson, GE Capital, and Ernst & Young. He also oversaw the development and growth of small businesses and startups.
Eric was a software developer for more than 10 years and worked for a wide variety of companies and utilizing various technologies as a consultant. He then moved into management and now specializes in managing technical people and projects, although he cannot help but continue to code. He has a B.S. in applied physics/computers from Grove City College. He brings considerable experience with development and a technical mindset for implementation to the table and is key to the ability of the project to execute it’s vision
For the full list of team members and advisors please visit the Loci website.
View the Loci Website here.
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(1) Loci Website, Loci, (2017)
(2) Loci Whitepaper, Loci (2017)