Dispute-Free Score

The formula for dispute-free function $F$ is expressed as follows:

$$\text{F}(D, t_{\text{last}}) = 1 - \frac{D}{D+1} \cdot e^{-\lambda \cdot t_{\text{last}}^2}$$

Where:

• $D$ is the total dispute count on the IP Asset. $\frac{D}{D+1}$ represents the base factor accounted for the total disputes. The more disputes there are, the lower the base for dispute-free factor $F$.

• $t_{\text{last}}$ represents the time since the last dispute. If there is no dispute, then $t_{last} = 0$.

• The dispute-recover factor is defined as

$$\text{Dispute Recovery} = e^{-\lambda \cdot t_{\text{last}}^2}$$

• $\lambda$ controls the rate of recovery. A larger $\lambda$ makes the score recover faster over time.

For better visualization, we graph the dispute-free score instead of just the dispute-free factor alone using the formula below.

$$\text{Dispute-Free Score} =M \cdot \text{F}(D, t_{\text{last}})$$

Again assuming a root IP Asset, we set the maximum validity score $M=100$. By setting a recovery factor of $\lambda=1$, and inputing a variety of different dispute counts $D \in \{0, 1, 5, 10, 20\}$, we would produce a curve that:

• If there are no disputes (i.e. $D = 0$), the dispute-free factor remains at 1.

• The higher the number of disputes, the lower the base dispute score will be.

• If there are disputes, the score decreases but recovers over time, with:

  • About 60% recovery after 1 year.

  • About 90% recovery after 2 years.

  • Close to 100% recovery after 3 years (even with high dispute counts).

Dispute-Free Factor Explanation

Over time, the key indicator of an IP asset's validity becomes whether it has been disputed, how many disputes occurred, and how long it has remained dispute-free. A higher number of disputes suggests that the asset may have controversy regarding its rightful ownership. As a result, an IP asset with more disputes should have a lower dispute-free base score compared to one with fewer disputes.

However, it's important not to assume that an asset with many disputes can never be considered legitimate. The critical factor is the time elapsed since the last dispute. If an asset has faced disputes but has been cleared of any infringement, and no further disputes arise, it’s likely that the asset is legitimate—especially if the issue was resolved through agreements or the Story Arbitration system.

This approach achieves the following:

• An IP asset with fewer disputes will almost always have a higher legitimacy score than one with many disputes.

• An IP asset’s legitimacy score drops immediately when there is a successful dispute initiation but can recover over time.

• Even assets with numerous disputes can still regain a strong legitimacy score as long as no further disputes occur for an extended period.