NFTs hold significant potential as the underlying asset model for an "Intellectual Property Exchange." Their unique, blockchain-based structure ensures verifiable ownership, authenticity, and immutability, making them ideal for representing intellectual property (IP) assets like patents, trademarks, or copyrights. NFTs can encapsulate metadata detailing IP rights, licensing terms, and provenance, enabling transparent and secure trading on a decentralized platform. Smart contracts embedded in NFTs can automate royalty distributions and enforce licensing agreements, streamlining transactions and reducing intermediaries. However, challenges like legal recognition, standardization, and scalability must be addressed to fully realize this potential. With proper frameworks, NFTs could revolutionize IP markets by enhancing liquidity, accessibility, and trust.