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Intellectual Property Strategy — Lantern ​

Overview ​

This document outlines Lantern's approach to trademark, patent, and trade secret protection. The goal is to establish defensible IP while balancing costs, timeline, and long-term strategic value.

1. Trademark Strategy ​

1.1 Brand Name: "Lantern" vs. Domain "ourlantern.app" ​

Status: App will be branded as "Lantern" with domain ourlantern.app.

Why this works:

  • Trademark protection is based on the brand name users know, not the domain
  • Many successful apps have domain ≠ brand name (e.g., Instagram uses instagram.com but is owned by Meta; Signal uses signal.org but is the Signal Foundation)
  • "ourlantern.app" domain serves as a sub-brand and prevents domain squatting

Key principle: Clear in-app and marketing materials that the product is called "Lantern" (not "Our Lantern"). Homepage and onboarding should establish this naming convention consistently.

1.2 Trademark Search & Availability ​

Required action (URGENT):

  • [ ] Conduct comprehensive WIPO (World Intellectual Property Organization) trademark search for "Lantern"
    • Search in US (USPTO), EU (EUIPO), Canada, and any other key expansion markets
    • Cost: ~$200–400 for professional search, or free via WIPO/USPTO databases (requires diligence)
    • Timeline: Do this within 1–2 weeks before filing

Possible scenarios and workarounds:

ScenarioStatusWorkaroundTimeline
"Lantern" available in all classes✅ IDEALFile trademark immediately1–2 weeks filing
"Lantern" partially available (e.g., Class 35/42 available, not Class 43)⚠️ ACCEPTABLEFile in available classes; use different name for food/beverage partnerships if needed; consider "Lantern App" as secondary mark2–3 weeks
"Lantern" fully unavailable❌ PROBLEMRebrand to: "Beacon," "Glow," "Ember," "Haven," "Venue" (and repeat search); consider acquiring rights from existing holder (expensive)2–4 weeks + potential cost

1.3 Filing Plan ​

Near-term (within 6 months of first commercial use):

  • [ ] File US trademark (USPTO) for "Lantern"

    • Classes: 35 (advertising/business), 42 (software/SaaS), 43 (food/beverage services for partnerships)
    • Cost: ~$300–500
    • Timeline: 6–12 months to grant

  • [ ] File EU trademark (EUIPO) if expansion to Europe is planned

    • Cost: ~$400–600
    • Timeline: 6–12 months to grant

  • [ ] File Canadian trademark if relevant

    • Cost: ~$300

Logo/visual mark (optional but recommended):

  • If you develop a distinctive icon, file it as a secondary mark
  • Helps prevent lookalikes even if word mark is contested

Maintenance:

  • Renew trademark every 10 years in each jurisdiction
  • Monitor for infringing uses and issue cease-and-desist letters if needed

2. Patent Strategy ​

2.1 Patent Feasibility Assessment ​

Potential defensible innovations:

  1. Geofence + check-in + redemption verification flow

    • Combined system integrating GPS validation, venue verification, fraud detection, and offer redemption
    • Novel if implementation differs materially from Foursquare/Groupon/Swarm

  2. Wave discovery algorithm

    • Specific weighting/ranking for users to discover connections at venues
    • Only patentable if truly novel (not just "matching people who check in at same venue")

  3. Zero-knowledge encryption for location data

    • Client-side encryption pattern for location-sensitive data
    • Only if implementation includes novel cryptographic techniques (standard encryption is not patentable)

  4. Merchant fraud detection system

    • ML-based or rule-based system to detect spoofing, velocity violations, coordinated fraud
    • Patentable if algorithm is novel

Not patentable:

  • "Check-in based offers" (prior art: Foursquare, Yelp, Groupon)
  • "Location-based matching" (prior art: many dating/social apps)
  • "PWA architecture" (PWAs are standard tech, not a novel invention)
  • "Encrypted user profiles" (encryption itself is not patentable; only novel crypto algorithms are)

2.2 Cost-Benefit Analysis ​

OptionCostTimelineValueRecommendation
Provisional Patent$300–500File immediatelyLow → Medium✅ DO THIS NOW (buys 12 months)
Full Utility Patent (US only)$5,000–10,0002–4 years to grantMedium (if defensible)⏳ WAIT until post-pilot
Full Utility Patent (US + EU)$15,000–25,0002–4 years per jurisdictionMedium → High⏳ WAIT until revenue justifies
No patent (rely on trade secrets)$0N/AHigh (faster to market)✅ RECOMMENDED for pilot

2.3 Recommended Approach ​

Now (Pilot Phase):

  • [ ] File a provisional patent application (PPA) for your most defensible innovation
    • Cost: ~$300–500
    • Establishes priority date (you have 12 months to convert to full utility patent)
    • Allows you to claim "patent pending" in marketing
    • Buys time to validate product-market fit before investing in full patent prosecution
    • Most likely candidate for PPA: Combined geofence + fraud detection + redemption verification system

Post-Pilot (6–12 months after launch):

  • If pilot shows strong product-market fit and defensible innovation, file full utility patents in US + EU
  • If innovation turns out to be too similar to existing patents, abandon the idea or pursue different angle
  • Total cost: ~$15,000–25,000 for comprehensive protection

Alternative: Skip patents and rely on trade secrets (see section 3) + network effects (user base, merchant relationships)

3. Trade Secrets & Competitive Advantage ​

Trade secrets are often MORE valuable than patents for software startups because:

  • No public disclosure required (unlike patents, which are published)
  • No expiration date (lasts as long as you keep it secret)
  • No expensive prosecution/defense required
  • Faster to protect (immediate upon creation)

3.1 What to Protect as Trade Secrets ​

  • [ ] Proprietary algorithms: Wave discovery ranking, fraud detection scoring, geofence validation logic
  • [ ] Merchant data insights: Aggregate patterns, seasonality analysis, offer ROI benchmarks
  • [ ] Customer acquisition strategies: Channel performance, cohort analysis, retention metrics
  • [ ] Technical implementation details: Specific encryption key management, server architecture, data pipeline design
  • [ ] Business model data: Pricing tiers, margin analysis, unit economics

3.2 How to Maintain Trade Secret Status ​

  • [ ] Confidentiality agreements: Have all employees and contractors sign NDAs covering trade secrets
  • [ ] Access controls: Limit access to sensitive code, data, and business metrics to need-to-know basis
  • [ ] Code repositories: Use private GitHub repos; never commit secrets to public repos
  • [ ] Documentation: Keep proprietary algorithm docs in encrypted, access-controlled storage
  • [ ] Onboarding: Brief new hires on what constitutes trade secrets and confidentiality expectations
  • [ ] Exit procedures: Ensure departing employees return all materials and reaffirm confidentiality obligations

4. Legal & Terms of Service Protections ​

4.1 Terms of Service & IP Ownership ​

  • [ ] Clearly state in ToS that all user-generated content (offers, lantern messages, check-ins) is owned by Lantern with license from user
  • [ ] Explicitly state that merchants cannot copy/reverse-engineer Lantern's matching/verification algorithms
  • [ ] Prohibit bot/automated access to Lantern data (prevents scraping)
  • [ ] Include DMCA takedown notice procedures for IP violations

4.2 Licensing & API Terms ​

  • [ ] For any future API (mobile SDKs, merchant APIs), use restrictive licensing:
    • Non-commercial use only (for dev/testing)
    • No reverse engineering or decompilation
    • Geographic/domain restrictions (prevent competitors using your API)

4.3 Attribution & Branding Guidelines ​

  • [ ] Document official "Lantern App" branding guidelines
  • [ ] Publish partner/merchant badge usage guidelines (prevent unauthorized use of Lantern branding)

5. Monitoring & Enforcement ​

5.1 Competitor Monitoring ​

  • [ ] Quarterly search for apps/services using "Lantern" name or confusingly similar branding
  • [ ] Set up Google Alerts for:
    • "Lantern" + "app" + "venue"
    • "Lantern" + "check-in"
    • "Lantern" + "offers"
  • [ ] Monitor app stores (Apple App Store, Google Play) for copycat apps
  • [ ] If copycat found: assess likelihood of confusion → consider cease-and-desist letter → potential opposition

5.2 Enforcement Actions ​

  • [ ] Trademark infringement: Cease-and-desist letter (DIY or via lawyer ~$500–2,000)
  • [ ] Patent infringement: Detailed analysis required; enforcement is expensive (~$50,000+) and only worthwhile if infringer is well-capitalized
  • [ ] Trade secret misappropriation: Legal action if former employee violates NDA (requires proof of bad faith)
  • [ ] Copyright infringement: DMCA takedown notices for code/design copying (free to issue)

Note: Enforcement is costly. Most startups focus on defending against direct clones, not minor variations.

6. Timeline & Action Items ​

Immediate (This Month) ​

  • [ ] Trademark search: WIPO/USPTO search for "Lantern" availability (~2 weeks, $200–400)
  • [ ] Provisional patent (optional): If you want "patent pending" protection, file PPA for geofence + fraud detection system (~$300–500, takes 1 day)
  • [ ] Legal consultation: Spend 1 hour with startup IP lawyer (~$300–500) to review trademark/patent strategy

Short-term (Before Pilot Launch, 1–2 months) ​

  • [ ] Trademark filing: If "Lantern" is available, file US trademark (and EU if expanding internationally)
    • Cost: $300–500 per jurisdiction
    • Timeline: 6–12 months to grant, but you can use "™" immediately
  • [ ] Terms of Service: Draft ToS mentioning IP ownership, API restrictions, and brand guidelines
    • Cost: $2,000–5,000 if using startup lawyer (or DIY using Termly/iubenda templates)

Medium-term (Post-Pilot, 6–12 months) ​

  • [ ] Convert provisional to full utility patent: Only if defensible innovation and product-market fit proven
    • Cost: $5,000–15,000
    • Timeline: 2–4 years to grant
  • [ ] Trade secret documentation: Formalize list of trade secrets, access controls, and employee training
    • Cost: Internal time only (~10 hours)

Long-term (Year 2+) ​

  • [ ] International trademark expansion: File in additional markets (Canada, Australia, Japan, etc.) if business scales
    • Cost: ~$500 per jurisdiction
  • [ ] Patent enforcement strategy: If competitors emerge, assess whether litigation is worth it
  • [ ] Brand equity monitoring: Periodic searches and competitive analysis

7. Cost Summary ​

ItemCostTimingRequired?
Trademark search$200–400Now✅ YES (2–3 weeks)
Provisional patent$300–500Now⏳ Optional but cheap
US trademark filing$300–500This month✅ YES (if available)
EU trademark filing$400–600This month⏳ If expanding to EU
Legal consultation (1 hour)$300–500Now✅ Highly recommended
Terms of Service (DIY)$0 (time only)Next month✅ YES
Terms of Service (lawyer)$2,000–5,000Next month⏳ Optional if budget allows
Full utility patent (US only)$5,000–10,000Post-pilot⏳ Only if defensible
Full utility patent (US + EU)$15,000–25,000Post-pilot⏳ Only if defensible
Total (minimal path)~$800–1,500Now–next month✅
Total (with lawyer help)~$3,500–7,500Now–next month✅

8. What Actually Stops Competitors? ​

Based on analysis, IP alone does not prevent competitors from entering the space. Your real moats are:

  1. Network effects: User base + merchant relationships create lock-in
  2. Merchant relationships: Your co-founder's industry connections = trust, low CAC, high retention
  3. Product velocity: Iterate faster than competitors; first-mover advantage in San Diego
  4. Frictionless UX: PWA, one-tap check-in, no app install → hard to replicate quickly
  5. Unit economics: Healthy margins on offers + recurring revenue = sustainable growth
  6. Data advantages: Over time, you'll have more merchant performance data than competitors

IP protections (trademark, patent, trade secret) are table stakes—they provide legal tools if someone copies you, but they're not your primary competitive advantage.

References & Resources ​

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