Patent Explainer: Tokenised Patent Licensing (F-010)

What F-010 Does

F-010 describes a system where patent licences are issued as blockchain tokens. Instead of negotiating a licence with lawyers, you buy tokens from a bonding curve. The number of tokens you hold determines the scope of your licence. The purchase itself is the licence agreement — accepted by performance, recorded on-chain.

This is the patent that powers the $KWEG vending machine at kwegwong.com/patents.

The Problem It Solves

Patent licensing has been broken for over a century:

Every licence is negotiated individually. Two licensees may pay vastly different amounts for the same rights. There is no transparency.
Licences are binary. A solo developer and a multinational corporation start from the same negotiating position. There is no graduated access.
There is no public licence registry. If someone claims to hold a patent licence, there is no way for a third party to verify it without contacting the licensor.
Licences are non-transferable. When a company is acquired, the licence must be renegotiated.
Early adopters get no economic benefit. The first licensee pays the same as the hundredth.
The patent text and the licence are separate documents in separate systems in separate formats.

F-010 solves all six problems with a single mechanism: the token.

How It Works

1. Patent-as-Token Inscription

The full patent specification is inscribed on the blockchain as the token's content payload. The patent text hash, the licence terms, and the token are a single on-chain object. There is no separation between "the patent" and "the licence."

2. Bonding Curve Pricing

The cost of tokens is determined by a mathematical formula:

price(n) = c × n

Where c is a calibration constant and n is the current position on the supply curve. Early buyers pay less per token. Late buyers pay more. The price is deterministic — computed from publicly observable on-chain state. No negotiation.

For $KWEG, the curve is calibrated so that a Startup commercial licence costs $402 from position zero. Because the protocol is $402.

3. Graduated Licence Tiers

The number of tokens you hold determines your licence scope:

Tier	Tokens Required	Rights	Cost from Position 0
0 — Read	1+	Read patent specifications	~ free
1 — Research	10,000+	Non-commercial implementation	$0.04
2 — Startup	1,000,000+	Commercial, $1M revenue cap	$402
3 — Enterprise	10,000,000+	Commercial, $100M revenue cap	$40,200
4 — Unlimited	100,000,000+	No cap, sublicensing	$4,020,000
5 — Governance	500,000,000+	Governance & veto rights	$100,500,000

If you sell tokens and drop below a threshold, you lose the tier. If you buy more, you gain it. Automatic. No human intervention.

4. PATL Licence Grant Inscriptions

Every token purchase inscribes a PATL record on the blockchain:

Protocol: PATL (0x50 0x41 0x54 0x4C)
Operation: licence-grant (0x02)
Records: token ID, licensee identity, tokens acquired, tier, price, timestamp, patent references

This inscription is permanent and verifiable by any third party without contacting the licensor.

5. Transferable Licences

When tokens are transferred, the licence transfers automatically. The new holder inherits the tier corresponding to their balance. No licensor approval needed.

6. Machine-Readable Discovery

AI agents can discover the patent, read the licence terms (inscribed on-chain), compute the price (from the bonding curve), acquire tokens (via blockchain transaction), and verify their licence status — all without human intervention.

Legal Basis

The token purchase constitutes a unilateral contract offer accepted by performance, per Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256. The bonding curve price is the offer. The payment is the acceptance. The PATL inscription is the contract evidence.

The Self-Licensing Property

F-010 is the patent for tokenised patent licensing. $KWEG is the token that licences F-010. The system licences itself. Using it is the proof that it works.

Live Implementation

Token: $KWEG (BSV-21)
Supply: 1,000,000,000
Deployment TX: View on WhatsOnChain
Buy: kwegwong.com/patents
Licence terms: kwegwong.com/licence
Shop: kwegwong.com/shop

Filed at UKIPO by The Bitcoin Corporation Ltd. Patent pending. Application reference F-010.