---
title: "Patent Explainer: Tokenised Patent Licensing (F-010)"
description: "How F-010 works — the patent that lets you buy patent licences with tokens. Bonding curve pricing, graduated tiers, on-chain licence grants, and why the token IS the licence."
date: "2026-03-15T12:00:00Z"
author: "The Bitcoin Corporation Ltd"
slug: "patent-f010-tokenised-patent-licensing"
audience: ["human", "search", "ai"]
topics: ["patent-explainer", "F-010", "tokenised-patents", "bonding-curve", "PATL", "$KWEG", "licence-tiers"]
canonical: "https://kwegwong.com/blog/patent-f010-tokenised-patent-licensing"
markdown: "https://kwegwong.com/blog/patent-f010-tokenised-patent-licensing.md"
---

## 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:

1. **Every licence is negotiated individually.** Two licensees may pay vastly different amounts for the same rights. There is no transparency.

2. **Licences are binary.** A solo developer and a multinational corporation start from the same negotiating position. There is no graduated access.

3. **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.

4. **Licences are non-transferable.** When a company is acquired, the licence must be renegotiated.

5. **Early adopters get no economic benefit.** The first licensee pays the same as the hundredth.

6. **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](https://whatsonchain.com/tx/17ee7fcc9c5764dc9983af912e044da8d11f26db17a5f68a0757a250db5cf983)
- **Buy:** [kwegwong.com/patents](https://kwegwong.com/patents)
- **Licence terms:** [kwegwong.com/licence](https://kwegwong.com/licence)
- **Shop:** [kwegwong.com/shop](https://kwegwong.com/shop)

---

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