New concept: Enforcement Network (contingency-incentivized violation enforcement)

Introduces specs/EnforcementNetworkConcept.md: independent, locally-licensed
Enforcement Partners pursue unauthorized Commercial Use (License §3
violations) in their home jurisdiction for a Contingency Share of Recovery,
so enforcement scales the way the framework's monetization already does -
through aligned incentive rather than central litigation capacity. New
terminology (Alleged Violation, Enforcement Action, Recovery, Contingency
Share, Platform Share, Enforcement Registry, Enforcement Partner Agreement)
plus a proposed enforcement-recovery Monetization Extension so Recovery
flows into Development Credit through the existing accounting model rather
than a parallel bucket.

Flags the mechanism's central risk up front rather than assuming it away:
lawyer contingency fees are not legal everywhere. Backed by
workplans/TREV-WP-0005-enforcement-network-research.md (10 tasks); four
executed this session with live web research:

- Germany/EU: RVG §4a permits contingency fees only in three narrow gates,
  none fitting this fact pattern well - single-role Enforcement Partner is
  very likely not viable; France permits a fixed-fee-plus-uncapped-result-
  fee structure instead; EU litigation-funding regulation is proposed
  (2022 EP resolution) but not yet adopted.
- US: contingency fees broadly permitted; practical precondition is timely
  copyright registration of the Milestone Release to unlock statutory
  damages/fee-shifting; Copyright Claims Board flagged as a lower-cost venue.
- UK: Damages-Based Agreements cap fees at 50% for this case category -
  the concept's originally-proposed 50% Contingency Share lands exactly on
  this real statutory ceiling, the first jurisdiction where the figure is
  precisely validated rather than arbitrary.
- Mechanism design: synthesizes the above into a single Enforcement Partner
  Agreement template with jurisdiction-conditional role structure
  (single-role vs. Litigation Funder/Local Counsel split), with a payment-
  flow diagram showing the Development Credit allocation is unaffected by
  which structure applies.

Six of ten WP-0005 tasks remain open (Argentina, India, China, Africa,
Asia-Pacific, and the human-gated synthesis). Cross-referenced from README.

Co-Authored-By: Claude Sonnet 5 <noreply@anthropic.com>
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---
id: TREV-WP-0005
type: workplan
title: "Enforcement Network — legal feasibility and design research"
domain: infotech
repo: target-revenue
status: active
owner: claude
topic_slug: infotech
created: "2026-07-29"
updated: "2026-07-29"
---
# Enforcement Network — legal feasibility and design research
Researches the legal feasibility of `specs/EnforcementNetworkConcept.md`'s
core mechanism: independent Enforcement Partners pursuing unauthorized
Commercial Use in their home jurisdiction for a Contingency Share of
Recovery. This is a **distinct research axis from** `workplans/TREV-WP-0004-global-jurisdiction-research.md`:
WP-0004 asks whether the License/Commercial Use Agreement's own terms
(liability caps, data protection, choice of law) hold up per jurisdiction;
this workplan asks whether the *enforcement mechanism itself* — lawyers or
funders being paid a percentage of what they recover — is even legal in
each jurisdiction, which is a legal-services/professional-ethics question,
not a contract-enforceability question.
**This workplan produces research artifacts, not final legal text or a
final Contingency Share percentage.** Per `SCOPE.md` and `CONTRIBUTING.md`,
no output may be treated as legal advice or as resolving an open question
in `specs/EnforcementNetworkConcept.md` without specialist counsel review
and the same human-accept gate already applied elsewhere in this repository.
**Known central risk (already flagged in the concept doc, §8):**
contingency fees for lawyers are banned or tightly restricted in several
major jurisdictions (Germany foremost). Every jurisdiction task below must
explicitly answer: (a) can a lawyer in this jurisdiction be paid a
percentage of recovery directly; (b) if not, is a Litigation Funder /
Local Counsel split (concept §8) a viable workaround under this
jurisdiction's law; (c) what percentage or fee-structure limits apply
either way.
**Deliverable convention:** same as WP-0004 — dated artifacts under
`history/`, only the synthesis task (T10) proposes edits to
`specs/EnforcementNetworkConcept.md` directly, gated behind human accept.
## Germany and EU-wide
```task
id: TREV-WP-0005-T01
status: done
priority: high
```
Result 2026-07-29: `history/260729-TREN-Jurisdiction-Germany-EU.md` produced.
Confirmed via search: RVG §4a permits contingency fees only in three narrow
gates (≤€2,000 claims, debt collection, or client-would-be-deterred), none
fitting TREN's likely fact pattern well — single-role Enforcement Partner
is very likely not viable in Germany, confirming concept §8's hypothesis.
France (second data point) permits a fixed-fee-plus-uncapped-result-fee
structure instead. EU-level litigation funding regulation is proposed
(2022 EP resolution) but not yet adopted; March 2025 Commission mapping
study found funding remains largely unregulated at EU level.
Research German RVG §4a's narrow conditional-fee exception in detail
(exact conditions under which *Erfolgshonorar* is permitted); the
*pactum de quota litis* restriction's status and any liberalization trend
across major EU civil-law jurisdictions (at least France as a second
data point); EU-level third-party litigation funding regulation (the
2022 European Parliament resolution/proposed directive on responsible
private funding of litigation, if adopted or advanced); and practical
procedural routes for pursuing unauthorized Commercial Use as copyright/
contract infringement in Germany (injunctive relief availability, typical
timeline, cost-shifting "loser pays" exposure).
**Deliverable:** `history/<date>-TREN-Jurisdiction-Germany-EU.md`.
## United States
```task
id: TREV-WP-0005-T02
status: done
priority: high
```
Result 2026-07-29: `history/260729-TREN-Jurisdiction-US.md` produced.
Confirmed contingency fees are broadly permitted (single-role Enforcement
Partner viable), subject to state-bar reasonableness rules. Surfaced a
practical (not legal) precondition: contingent-fee copyright counsel
generally need timely copyright registration of the Milestone Release to
unlock statutory damages ($750-$30,000/work, up to $150,000 for willful
infringement) and fee-shifting — otherwise cases are hard to value.
Identified the Copyright Claims Board as a lower-cost venue option for
smaller Enforcement Actions. Litigation funding is permitted; the live
regulatory topic is disclosure, not prohibition.
Research US contingency-fee availability (broadly permitted, subject to
state-bar reasonableness rules and some matter-type restrictions e.g.
family law/criminal defense); state-level litigation funding disclosure
and regulation trends; the historical champerty/maintenance doctrine's
much-reduced modern relevance; and typical US copyright/software-license
infringement procedure (statutory damages availability under the Copyright
Act where registration applies, injunctive relief, small-claims-adjacent
options such as the Copyright Claims Board for lower-value disputes).
**Deliverable:** `history/<date>-TREN-Jurisdiction-US.md`.
## United Kingdom
```task
id: TREV-WP-0005-T03
status: done
priority: high
```
Result 2026-07-29: `history/260729-TREN-Jurisdiction-UK.md` produced.
Confirmed the Damages-Based Agreement Regulations 2013 cap fee percentages
at 25% (personal injury), 35% (employment), and **50% for all other
cases** — the concept doc's proposed 50% Contingency Share lands exactly
on this real statutory ceiling for the case category an unauthorized-
Commercial-Use claim would fall into, the first jurisdiction where the
original figure is precisely validated rather than arbitrary. Conditional
Fee Agreements (fee-plus-uplift) are a second, more flexible option.
Litigation funding is a mature, self-regulated market (ALF Code of
Conduct); champerty/maintenance doctrines are largely set aside for
commercial funding.
Research Conditional Fee Agreements (CFAs) and Damages-Based Agreements
(DBAs) as the UK's structured alternative to a plain contingency fee,
including their statutory caps; the UK's well-established, self-regulated
third-party litigation funding market (Association of Litigation Funders
Code of Conduct); the historical champerty/maintenance doctrine's current
near-abolition for funded commercial litigation; and typical UK IP/breach
enforcement procedure.
**Deliverable:** `history/<date>-TREN-Jurisdiction-UK.md`.
## Latin America (Argentina anchor)
```task
id: TREV-WP-0005-T04
status: todo
priority: medium
```
Research *pacto de cuota litis* availability for Argentine abogados
(generally more permissive than continental Europe, often with statutory
caps) and the broader Latin American pattern this represents or diverges
from; local litigation-funding market maturity; and enforcement procedure
for unauthorized commercial software use.
**Deliverable:** `history/<date>-TREN-Jurisdiction-Argentina.md`.
## India
```task
id: TREV-WP-0005-T05
status: todo
priority: medium
```
Research the Bar Council of India Rules' prohibition on advocates
charging contingency fees, whether a Litigation Funder/Local Counsel split
(concept §8) is viable under Indian law and professional-conduct rules
given that prohibition, third-party litigation funding's legal status in
India (historically permitted for funders who are not the advocate
themselves, subject to some uncertainty), and IP enforcement procedure.
**Deliverable:** `history/<date>-TREN-Jurisdiction-India.md`.
## China
```task
id: TREV-WP-0005-T06
status: todo
priority: medium
```
Research Chinese lawyers' contingency-fee rules (permitted in specified
case types, typically capped, under Ministry of Justice regulation),
litigation funding's presence and regulatory treatment in China, and the
practical constraints a foreign copyright holder faces retaining local
counsel and pursuing enforcement in Chinese courts — building on
`workplans/TREV-WP-0004-global-jurisdiction-research.md` T06's finding
(if completed first) regarding foreign governing-law/venue enforceability.
**Deliverable:** `history/<date>-TREN-Jurisdiction-China.md`.
## Africa (representative jurisdictions)
```task
id: TREV-WP-0005-T07
status: todo
priority: medium
```
Research South Africa's Contingency Fees Act 1997 (a statutory framework
explicitly permitting capped contingency fees for attorneys — likely the
most permissive African anchor jurisdiction) and the OHADA zone's
French-derived restriction on *pacte de quota litis* as the civil-law
anchor, consistent with the representative-jurisdiction approach used in
WP-0004 T07.
**Deliverable:** `history/<date>-TREN-Jurisdiction-Africa.md`.
## Asia-Pacific (beyond India and China)
```task
id: TREV-WP-0005-T08
status: todo
priority: medium
```
Research Singapore's recent liberalization permitting Conditional Fee
Agreements for certain proceedings (a change from its historical
prohibition), Japan's customary success-fee arrangements under bar-
association guidelines, and Australia's mature, heavily-regulated
litigation funding market (a global hub for funded litigation) alongside
its state-variable rules on lawyer contingency/uplift fees.
**Deliverable:** `history/<date>-TREN-Jurisdiction-AsiaPacific.md`.
## Cross-cutting mechanism design
```task
id: TREV-WP-0005-T09
status: done
priority: high
```
Result 2026-07-29: `history/260729-TREN-MechanismDesign.md` produced.
Synthesizes T01-T03 into a single Enforcement Partner Agreement template
with jurisdiction-conditional role structure: single-role (Local Counsel
receives Contingency Share directly — US, likely UK/France) vs. split-role
(Litigation Funder receives Contingency Share, pays Local Counsel under a
locally-compliant fee — Germany, likely much of continental Europe).
Platform Share and the Development Credit allocation rule (concept §6)
are unaffected by which structure applies — only the Contingency Share's
internal routing varies. Produced a payment-flow diagram and a six-clause
EPA outline. Explicitly notes the feasibility matrix is incomplete pending
T04-T08.
Independent of any single jurisdiction: design the Litigation Funder /
Local Counsel split-role structure (concept §8) in enough concrete detail
to serve as an Enforcement Partner Agreement outline — who contracts with
whom, how the Contingency Share flows from Recovery to the Funder and from
the Funder (or Licensor) to Local Counsel, how standing/power-of-attorney
works for a foreign Licensor engaging local counsel, and what the
Enforcement Registry (Trust Service component) needs to record to keep
this auditable without the Trust Service making any of the underlying
legal decisions (concept §3.2, §10).
**Deliverable:** `history/<date>-TREN-MechanismDesign.md`.
## Synthesis: feasibility matrix and concept resolution
```task
id: TREV-WP-0005-T10
status: todo
priority: high
human_accept_required: true
```
Using T01T09, produce a consolidated feasibility matrix (one row per
jurisdiction/family: direct lawyer contingency permitted? statutory cap?
litigation funding regulatory status? recommended structural variant) and
propose (but do not unilaterally apply) resolutions to
`specs/EnforcementNetworkConcept.md` §11's open questions, particularly
question 2 (is 50% viable, and where) and question 5 (foreign-Licensor
standing). Draft an Enforcement Partner Agreement outline (not full legal
text) reflecting T09's mechanism design plus the per-jurisdiction variants
this task identifies.
**Human accept gate:** per the policy already applied to every other
candidate legal document in this repository. Agents may prepare the
synthesis and proposed concept-doc edits and leave this task `todo`
"ready for review," not done.
**Deliverable:** `history/<date>-TREN-Synthesis.md`, plus proposed (not yet
applied) edits to `specs/EnforcementNetworkConcept.md`.