PROVISIONAL PATENT APPLICATION
Bag #4: Competitor Acquisition and Integration Protocol
Innovation #52 (1 Innovation, 8 Claims)
FILING INFORMATION
Title: Competitor Acquisition and Integration Protocol with Opportunity Cost Compensation
Applicant: Upekrithen LLC
Inventor: Jonathan Ray Jones
Entity Status: Micro Entity
Filing Fee: $65
Related Applications:
- Cross-reference to U.S. Provisional Application No. 63/925,672 (Filed November 26, 2025)
- Cross-reference to U.S. Provisional Application No. TBD (Medallion Mechanism)
- Cross-reference to U.S. Provisional Application No. TBD (Community Engagement)
Priority Date: To be filed within 7 days of November 27, 2025
ABSTRACT
A method and system for acquiring competitor intellectual property through fair compensation based on quantified opportunity cost. The system comprises identification of complementary small creators, valuation based on documented time investment, monetary expenditure, proven revenue, community size, and appraised IP value, with a minimum floor compensation advantageous to the acquired party. The acquisition structure preserves creator rights through shared IP ownership while granting platform licensing rights, with filing date priority for dispute resolution. Compensation includes platform currency (MARKS) for opportunity loss and founder-level status conferring governance rights. The system creates incentive alignment where acquired creators benefit from ecosystem participation while contributing their proven intellectual property to the platform’s asset library.
SPECIFICATION
FIELD OF THE INVENTION
This invention relates to intellectual property acquisition, specifically to systems and methods for fairly acquiring and integrating competitor IP into cooperative commerce platforms.
INNOVATION #52: COMPETITOR WELCOME PROTOCOL
Respectful IP Acquisition with Opportunity Cost Compensation
Parent Innovations: #9 Boaz Principle, #3 Medallion Cascade, #14 MARKS, #51 Exponential Innovation Engine
Summary: A comprehensive framework for acquiring small competitor IP through fair compensation, shared ownership, and platform integration.
DETAILED DESCRIPTION
Background
Traditional intellectual property acquisition follows adversarial models where larger entities acquire smaller competitors at minimal valuations, strip useful IP, and discard the original creators. This approach fails to recognize the full value created by small innovators and creates negative-sum outcomes for the broader creative ecosystem.
The present invention provides a cooperative acquisition framework based on the principle: “We give them what we would want to be paid.”
The Opportunity Cost Formula
Compensation is calculated as the maximum of a minimum floor (advantageous to the acquired party) and a proven value calculation:
COMPENSATION = MAX(Minimum_Floor, Proven_Value)
Proven_Value = (Time_Investment × Hourly_Rate) +
(Monetary_Investment × Risk_Premium) +
(Revenue_Generated × Market_Validation) +
(Community_Size × Per_User_Value) +
(Appraised_IP_Value)
Default multipliers:
- Hourly Rate: $25/hour baseline
- Risk Premium: 1.5× monetary investment
- Market Validation: 2.0× proven revenue
- Per User Value: $1 per engaged community member
- IP Appraisal: Third-party or mutual agreement
Shared IP Structure
The acquisition preserves creator rights while enabling platform utilization:
Creator Retains:
- Co-ownership of contributed IP
- Right to continue using their own designs
- Attribution on all platform uses
- Revenue share from platform sales
Platform Receives:
- License to use IP on platform
- Right to create derivative works
- Right to sublicense
- Priority filing rights (platform wins ties based on filing date)
Compensation Components
- Cash/Credit Payment: Based on opportunity cost formula
- MARKS Allocation: Platform currency for opportunity loss
- Founder Status: Governance rights, medallion, Sacred Texts listing
- Revenue Share: Ongoing percentage of IP-specific sales
Integration Process
- Identification: Search for complementary small creators
- Outreach: Respectful invitation to discuss acquisition
- Evaluation: Joint assessment of proven value
- Negotiation: Structure optimization (cash vs. MARKS vs. equity)
- Integration: IP transfer, onboarding, community welcome
CLAIMS
Claim 52.1 (Independent): A method of acquiring competitor intellectual property comprising: a) identification of complementary small creators in relevant markets; b) quantified valuation based on documented opportunity cost including time investment, monetary expenditure, proven revenue, community size, and appraised IP value; c) minimum floor compensation set at a level advantageous to the acquired party; d) shared IP structure preserving original creator rights while granting platform license; e) platform currency (MARKS) compensation for opportunity loss; f) founder-level status conferral with governance rights.
Claim 52.2 (Dependent on 52.1): The method wherein opportunity cost calculation comprises: a) time investment multiplied by baseline hourly rate; b) monetary investment multiplied by risk premium factor; c) proven revenue multiplied by market validation factor; d) community size multiplied by per-user value; e) third-party or mutually-agreed IP appraisal value; f) sum of above factors compared to minimum floor, with higher value prevailing.
Claim 52.3 (Dependent on 52.1): The method wherein shared IP governance comprises: a) co-ownership structure preserving original creator usage rights; b) platform license for distribution, derivative works, and sublicensing; c) filing date priority for dispute resolution between overlapping claims; d) revenue sharing based on IP-specific sales; e) attribution requirements in all platform uses.
Claim 52.4 (Dependent on 52.1): The method wherein MARKS compensation tiers comprise: a) Seed tier (1,000 MARKS) for idea-stage minimal development; b) Sprout tier (5,000 MARKS) for working prototype with some sales; c) Sapling tier (15,000 MARKS) for established product with community; d) Tree tier (50,000 MARKS) for proven revenue with significant following.
Claim 52.5 (Dependent on 52.1): The method wherein founder status comprises: a) Founder’s Circle Medallion (physical and NFT); b) listing in Sacred Texts as contributing inventor; c) credit on all derivative works; d) voting rights in platform governance.
Claim 52.6 (Independent): A system for integrating acquired creators comprising: a) identification module scanning relevant marketplaces and platforms; b) valuation module calculating opportunity cost from documented evidence; c) outreach module generating respectful invitation communications; d) negotiation module optimizing compensation structure; e) integration module transferring IP and onboarding creator; f) revenue distribution module tracking and distributing ongoing payments.
Claim 52.7 (Dependent on 52.6): The system wherein identification sources comprise: a) crowdfunding platforms (funded and unfunded campaigns); b) creator marketplaces (Etsy, Gumroad, similar); c) 3D model repositories (Thingiverse, MyMiniFactory, similar); d) community platforms (Reddit, Discord, similar); e) inbound interest submissions.
Claim 52.8 (Dependent on 52.6): The system wherein payment structure options comprise: a) 100% upfront (cash/credits); b) 50% upfront plus 50% over 12 months; c) 25% upfront plus enhanced revenue share; d) primarily MARKS plus minimal cash (for believers); e) creator selection of preferred structure.
CLAIMS SUMMARY
| Claim Type | Count |
|---|---|
| Independent Claims | 2 |
| Dependent Claims | 6 |
| Total Claims | 8 |
DRAWINGS
Drawings to be submitted separately, including:
- FIG. 52A: Opportunity Cost Calculation Flowchart
- FIG. 52B: Shared IP Ownership Structure Diagram
- FIG. 52C: Acquisition Process Workflow
- FIG. 52D: MARKS Tier Comparison Chart
- FIG. 52E: Integration System Architecture
ADVANTAGES OF THE INVENTION
- Fair Compensation: Acquired creators receive payment reflecting actual investment
- Preserved Rights: Creators maintain usage rights to their own IP
- Ongoing Revenue: Revenue share creates long-term alignment
- Community Building: Acquired creators become platform advocates
- IP Consolidation: Platform builds comprehensive asset library
- Reduced Competition: Potential competitors become collaborators
- Expertise Retention: Original creators can continue developing their work
EXAMPLE IMPLEMENTATION
Scenario: Small terrain creator “HexMaster” has developed 45 STL designs for tabletop gaming.
Opportunity Cost Calculation:
- Time: 500 hours × $25 = $12,500
- Money: $3,000 spent × 1.5 = $4,500
- Revenue: $2,000 sales × 2.0 = $4,000
- Community: 800 followers × $1 = $800
- IP: 45 designs appraised at $5,000
- Total Proven Value: $26,800
Minimum Floor: $10,000
Compensation: $26,800 (Proven Value exceeds floor)
MARKS Tier: Sapling (15,000 MARKS) based on established product with community
Outcome: HexMaster receives $26,800 compensation, 15,000 MARKS, Founder’s Circle Medallion, ongoing revenue share on platform sales of their designs, and ability to continue creating with platform resources.
CERTIFICATION
I hereby declare that I am the inventor of the subject matter claimed herein, that I have reviewed and understand the contents of this provisional application, and that all statements made herein of my own knowledge are true.
Inventor Signature: ____________________
Jonathan Ray Jones
Date: ____________________
FILING CHECKLIST
- Application Data Sheet (ADS)
- Specification (this document)
- Claims
- Abstract
- Drawings (5 figures)
- Micro Entity Certification
- Filing Fee ($65)
- Cover Sheet
FILING INSTRUCTIONS
- File electronically via USPTO EFS-Web
- Select “Provisional Application”
- Upload this document as specification
- Pay $65 micro entity fee
- Receive confirmation with application number
- Record application number and filing date
- Calendar: 12 months to convert to non-provisional
Document Created: November 27, 2025 Status: READY TO FILE Estimated Filing Cost: $65 Deadline: File within 7 days for priority continuity
Liana Banyan Corporation Upekrithen LLC “We give them what we would want.”