Patent Ownership Mechanics: Upekrithen → LB Ironclad
A proposal for genuine fractional patent ownership through Upekrithen, converting to irrevocable LB licensing.
Keep It Super Simple 3-Tier Explanation
Quick Tier
5K sponsors buy fractional patent ownership from Upekrithen → That ownership gets donated irrevocably to LB → Sponsors get Joules equivalent to their ownership share.
Standard Tier
[Full explanation below]
Deep Tier (Academic)
[See patent law references at bottom]
The Proposal
Current Structure
| Entity | Current Role |
|---|---|
| Upekrithen, LLC | Owns all patents (100%) |
| Jonathan Jones | Controls Upekrithen |
| Liana Banyan Corp | Licensed to use patents |
Proposed Mechanic
- Upekrithen sells up to 20% of each patent to 5K sponsors
- Price = Conversion Cost + Implementation Cost + 20%
- Ownership is REAL — sponsor owns a fractional piece of the patent
- Sponsor then DONATES their share irrevocably to Liana Banyan’s perpetual licensing pool
- In exchange, sponsor receives Joules at the locked rate equivalent to their ownership value
Why This Works
- You CAN sell what you own — Upekrithen legitimately owns the patents
- It’s NOT securities — It’s patent ownership, which is property
- Irrevocable donation — Once in LB, it can never be pulled back
- Joules compensation — Real platform value for real contribution
The Math
Patent Conversion Costs (Estimated)
| Category | Cost |
|---|---|
| Provisional → Utility | ~15,000-25,000 dollars per patent |
| USPTO Filing Fees | ~1,500-3,000 dollars per patent |
| Legal Review | ~5,000-10,000 dollars per patent |
| Total per Patent | ~21,500-38,000 dollars |
20% Ownership Calculation
For a patent with 30,000 dollars conversion cost:
| Item | Amount |
|---|---|
| Conversion Cost | 30,000 dollars |
| Implementation | 10,000 dollars |
| +20% (Consistent Margin) | 8,000 dollars |
| Total Patent Value | 48,000 dollars |
| 20% Share | 9,600 dollars |
Fractional Shares for 5K Sponsors
At 5,000 dollars contribution:
- Sponsor purchases: 5,000 / 9,600 = 52% of the 20% pool (= 10.4% of total patent)
- If multiple sponsors: shares are fractional within the 20%
The 6 Production Levels Integration
Scarcity Mechanic
Like other production progress bars:
| Level | Progress | Joule Eligibility | Scarcity |
|---|---|---|---|
| Level 1 | 0-17% | First 5% at Joules rate | Highest scarcity |
| Level 2 | 17-33% | 10th percentile unlock | High scarcity |
| Level 3 | 33-50% | 20th percentile unlock | Medium-high |
| Level 4 | 50-67% | 30th percentile unlock | Medium |
| Level 5 | 67-83% | 40th percentile unlock | Medium-low |
| Level 6 | 83-100% | Final unlocks | Lowest scarcity |
Application to Patent Purchase
| Patent Pool Progress | Joule Rate |
|---|---|
| First 5% of 20% pool | Full Joule conversion |
| At 10% milestone | Additional 5% eligible |
| At 20% milestone | Additional 5% eligible |
| … | Continues per formula |
Result: Early sponsors get better Joule rates (scarcity premium), later sponsors still participate but at declining rates.
The 80% Donation Analysis
Question: If I donate 80% to LB, is that too much?
Scenario A: Founder Donates 80% to LB
| Item | Result |
|---|---|
| LB Receives | 80% ownership of each patent |
| Sponsor Pool | 20% purchased, then donated irrevocably |
| Upekrithen Retains | 0% (after all sold/donated) |
| Founder Control | None — patents fully in LB |
Pros:
- LB has ironclad protection
- Sponsors have genuine ownership claim
- Platform is fully self-sustaining
Cons:
- Founder gives up all control
- If LB fails, patents go with it
- No fallback position
Scenario B: Founder Retains 20%, Donates 60%, Sponsors Buy 20%
| Item | Result |
|---|---|
| LB Receives | 60% + 20% (sponsor donations) = 80% |
| Sponsor Pool | 20% purchased, then donated |
| Upekrithen Retains | 20% (Founder Reserve) |
| Founder Control | 20% — veto on patent sale |
Pros:
- LB still has 80% (ironclad)
- Founder retains some control
- Fallback if needed
- Can donate remaining 20% later
Cons:
- Sponsors might question “why do you keep 20%?”
- Complexity in explanation
Scenario C: Founder Retains 10%, Donates 70%, Sponsors Buy 20%
| Item | Result |
|---|---|
| LB Receives | 70% + 20% = 90% |
| Sponsor Pool | 20% |
| Upekrithen Retains | 10% (minimal) |
| Founder Control | 10% — emergency only |
Pros:
- LB has 90% (very strong)
- Founder keeps tiny reserve
- Sponsors have real share
Cons:
- 10% might seem arbitrary
Recommendation
Scenario B (60/20/20) is optimal:
- LB gets 80% protection
- Sponsors buy real 20%
- Founder keeps 20% “in case of emergency”
- Later, Founder can donate remaining 20% → LB gets 100%
How This Changes the 5K Pitch
Old Pitch
“You get a perpetual license to use the patents.”
New Pitch
“You buy actual fractional ownership of the patent of your choice. Then you donate that ownership irrevocably to Liana Banyan — which locks it into the platform forever. In exchange, you receive Joules at the locked rate equivalent to your ownership value. You’re not just using the IP — you’re building the fortress.”
The “Joule Pouch” Term
The Analogy
| Item | State | Value |
|---|---|---|
| Flat cloth | Credits | Immediate spending power |
| Stitched bag | Joules | Same material, now holds value |
Proposed term: “Joule Pouch” — the container for deferred Joule conversions.
Alternatively:
- Shaped Joules (formed vs flat)
- Banked Joules (stored)
- Wrapped Joules (contained)
- Held Joules (reserved)
Recommendation: “Joule Pouch” captures the cloth/bag analogy best.
How We Pay Credits Before System Collects Them
The Bootstrap Problem
Question: How does the platform pay Credits when it hasn’t collected any yet?
The Answer: Seed Capital + Medallion Purchases
| Phase | Credit Source |
|---|---|
| Phase 0: Pre-Launch | Founder seed (1K = 10 medallions × 100 dollars) |
| Phase 1: First Sponsors | 5K sponsors purchase Credits (real money in) |
| Phase 2: Medallion Recipients | Their 100-dollar stakes enter the system |
| Phase 3: Membership | 5-dollar memberships add Credits |
| Phase 4: Production | Products sold generate Credits |
The Flow
REAL MONEY IN
│
▼
┌─────────────────────────────┐
│ LIANA BANYAN TREASURY │
│ (holds actual dollars) │
└──────────────┬──────────────┘
│
▼
┌─────────────────────────────┐
│ CREDITS ISSUED │
│ (at 1:1 rate initially) │
└──────────────┬──────────────┘
│
▼
┌─────────────────────────────┐
│ MEMBERS USE CREDITS │
│ (buy, vote, hire, tip) │
└──────────────┬──────────────┘
│
▼
┌─────────────────────────────┐
│ CREDITS CYCLE BACK │
│ (Cost + 20% on services) │
└─────────────────────────────┘
Where Does Money Actually Go?
| Real Money In | What Happens |
|---|---|
| Medallion purchase (100 dollars) | LB Treasury holds 100 dollars; issues 100 Credits |
| 5K Sponsor (5,000 dollars) | LB Treasury holds 5,000 dollars; issues 5,000 Joules |
| Membership (5 dollars) | LB Treasury holds 5 dollars; issues 5 Credits |
How LB Pays for Things
| Expense | Payment Source |
|---|---|
| Platform development | Treasury (real dollars) |
| Manufacturing | Credits (redeemed by Node operators for dollars) |
| Member rewards | Credits/MARKS (platform currency) |
| Patent conversion | Treasury (real dollars) OR sponsor funds |
The Key Insight
Credits are BACKED by real money in the Treasury.
When you buy 100 Credits:
- 100 dollars enters Treasury
- 100 Credits are issued to you
- You spend 80 Credits on a product
- Node operator receives 80 Credits
- Node operator can redeem 80 Credits from Treasury for 80 dollars (minus platform fees)
The system is solvent because every Credit issued is backed by a dollar that entered.
The Book of Peace (Cephas Navigation)
Concept
Cephas becomes “The Book of Peace” — because when the root causes of conflict (poverty, ignorance, lack of opportunity) are solved, peace flows naturally.
Structure
THE BOOK OF PEACE (Cephas)
│
├── Prologue: Why We Built This
│ └── Core Philosophy
│ └── The Founder's Story
│ └── The 16 Initiatives
│
├── Part I: Economics (HIVI)
│ └── Credits & Joules
│ └── Stake Accounts
│ └── The Differential
│
├── Part II: Production (5-Sigma)
│ └── Ghost Credits
│ └── Manufacturing
│ └── Quality Assurance
│
├── Part III: Governance (The 300)
│ └── Harper System
│ └── Star Chamber
│ └── Dispute Resolution
│
├── Part IV: Letters
│ └── Circle 1: Investors
│ └── Circle 2: Operators
│ └── Circle 3: Influencers
│ └── Circle 4: Community
│
├── Part V: Academic Papers
│ └── Deep-tier explanations
│ └── Patent documentation
│ └── Research integration
│
├── Part VI: Under the Hood
│ └── Technical documentation
│ └── Implementation details
│ └── System architecture
│
├── Part VII: Blueprints
│ └── Project journeys
│ └── Dead-end markers
│ └── Lessons learned
│
└── Epilogue: The Opening Gambit
└── Strategy (published)
└── Contingencies
└── Fly on the Wall
Navigation Philosophy
“Intuitive means many paths, not ‘my way’”
Every concept should be reachable from:
- Table of Contents (linear)
- Search (keyword)
- Cross-references (related topics)
- Tags (categories)
- Glossary (definitions)
- Visual maps (flowcharts)
Related Documents
| Document | Purpose |
|---|---|
| Sponsor Value Proof | Math backing |
| Joule Eligibility Progress Bars | Scarcity mechanic |
| Core Philosophy | Foundational principles |
“You’re not just licensing the IP — you’re building the fortress.”