# Legal Items for Review

**The standing legal queue · open and resolved · maintained with [Legal (Track 9)](legal.html) · deliberately separate from [Open Questions](open-questions.html)**

Every legal matter lives here — never on the product decision queue. Open items carry enough context to brief counsel from this page; resolved items keep their one-paragraph resolution so the whole legal history reads in one place. The full counsel responses of 2026-07-09 are on file with Moto (not published).

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## Open

### L-8 · Terms of Service — websites and apps

For kiduna.team, kidunaverse.com, kiduna.club, the mobile app, and the web money surface. To determine: member vs. guest terms; the duna-operator relationship (each duna is its own legal entity — whose terms govern where); acceptable-use and agent-conduct provisions; dispute resolution and governing law (WV); how Terms interact with duna membership agreements. **Status: stub — gathering requirements.**

### L-9 · Privacy — websites and apps

Privacy statements for the same surfaces. The product's four access levels (public / private / secret / personal) are the backbone — the policy should describe what the system already enforces, especially the personal tier (member-and-ally only, ever). To determine: data collection minimums, processor relationships (Stripe, model providers, Telegram et al.), GDPR/CCPA posture for non-US members, retention and deletion mechanics against the graph's Records. **Status: stub — gathering requirements.**

### L-10 · Licensing of Kiduna Club IP by dunas

Each duna licenses the Kiduna Club IP (marks, patent-pending technology, the platform itself). Commercial frame to standardize: **minimum monthly payments plus a percentage of Compute sales.** To determine: the standard license agreement; what exactly is licensed (marks vs. tech vs. both); how the license interacts with the spin-out path (Alliance → Organization); termination and survival. **Status: stub — structure with counsel.**

### L-11 · Fiscal sponsorship by KII

The Kinship Intelligence Institute (501(c)(3)) as fiscal sponsor for charitable-purpose dunas. To standardize: **how a duna applies** (eligibility, charitable-purpose fit, review) and **the terms of the fiscal sponsorship agreement** (funds handling, restricted-purpose accounting, reporting, administrative fee, term and exit). **Initial sponsorships: Service Alliance · Mycelial Aid · BiHome/Inner Clinic.** **Status: stub — draft the standard application + agreement.**

### L-12 · Patents — provisional updates and new filings

Two motions: **update the existing Kiduna/Kinship provisional application**, and **file a new provisional covering the new inventions.** Candidate subject matter for the new filing (from the spec as of v4.7): the graph-service permission architecture (every command permission-checked centrally); duna commands with machine-generated receipt sentences; the decentralized registry + Kinship Code JWT claims (registration of domains, pages, and media artifacts); the Sentinel's zero-point regulation model. **Status: stub — inventory inventions with counsel; provisional clock in mind.**

### L-13 · Conflict-of-interest policy (from item 7 resolution)

Counsel's extension of Institution recusal, adopted in direction: automatic recusal for financial, organizational, employment, family, or significant contractual interest; software-enforced; permanent disclosure of Institution affiliations, Organizer relationships, and paid engagements relevant to proposals. Remaining work: counsel drafts the association policy (portable to all dunas); the spec folds it into [Protocol §2](protocol.html) and [Foundation §6](foundation.html) once drafted. **Status: open — drafting.**

### L-14 · Initial-purchase commission mitigation (from item 6 resolution)

Counsel flagged that commissions on the *initial* Compute purchase are the part to watch (everyone necessarily makes one) and suggested considering a limit or reduction if it materially improves the FTC analysis. Decision needed: keep the default schedule as adopted (20/5/3/2 on all Compute purchases including the initial), or carve the initial purchase down/out. Whatever is decided conforms the published schedule and all Organizer-facing materials. **Status: open — awaiting counsel's follow-up view + Moto's call.**

### L-16 · Kinship Systems ↔ Lightbrush integration agreement

The first Institution integration ([Institutions](institutions.html)): Lightbrush LLC's creative agent stack integrating into The Ceremony Machine, with Elias (Kinship Systems) as forward-deployed engineer at no cost to Lightbrush. Drafted as a short letter agreement per the 2026-07-10 call — all Lightbrush materials remain Lightbrush's sole IP; Kinship Systems takes only the limited license needed to integrate; access is revocable and tools removable on request; distributions flow per the duna's recorded configuration with no earnings promised (counsel's Priority 3 rule). **Status: SENT to Lightbrush (2026-07-12) — awaiting Moe's signature; counsel eyes with the L-15 pass.**

### L-17 · Apache 2.0 release review

The stack ships open source August 10 ([Protocol §1a](protocol.html)). To confirm with counsel before release: license notices and file headers; contributor terms (DCO vs CLA); the code/marks split (Apache 2.0 code, Kiduna Club-licensed marks — a trademark policy so forks don't carry the brand); how the patent grant in Apache 2.0 interacts with the provisionals (L-12); and export/compliance boilerplate. **Status: stub — gathering with counsel.**

### L-18 · kiduna.ai and launch-deck vocabulary pass
**Open · stubbed 2026-07-14.** kiduna.ai becomes the authoritative registration/wallet/launchpad site under Kinship Duna's auspices, and the launch deck "The Agentic Internet Starts Here" is in circulation. Two phrases need counsel's securities-vocabulary review before wide distribution: the deck's "Compute can passively gain in value" (sits directly against the Priority-1 binding vocabulary) and the "launchpad / prices / trends" framing on kiduna.ai. Also confirm the guest tier (compute at 2x member price) and volume-tier language stay on the consumption side of the line.

### L-16 · Lightbrush agreement — RESOLVED 2026-07-21
**Executed.** The Kinship Systems ↔ Lightbrush agreement is signed (Moe). Off the tracking list.

### L-15 · Final review — package DELIVERED 2026-07-21
The counsel package is in counsel's hands, including: the AML/KYC posture statement (Stripe/Sphere carry KYC/AML; due diligence complete), the anonymous-account/person-vouched invitation design, and the single-token ($KIDUNA) structure. Awaiting counsel's end-to-end review; no further action from Moto until counsel responds.

### L-15 (original) · Final review

One end-to-end counsel pass over [Legal (Track 9)](legal.html) — resolutions as implemented, messaging as published, build requirements as built — before launch. **Status: open — scheduled before launch.**

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## Resolved · 2026-07-09 — counsel's responses to the brief (in priority order)

- **L-5 → Priority 1 · Securities.** Structure defensible; messaging decisive. Compute = "prepaid usage credits that power intelligent agents"; the avoid/always vocabulary is binding on every public surface; Founder = recognition only (cap of 1,000, gifts/swag fine), never framed as appreciation. → [Legal §2, Priority 1](legal.html)
- **L-3 → Priority 2 · Money transmission.** No discretion, ever: instructions fixed before money arrives; no redirecting, holding, or arbitrary reversal; Stripe/Sphere remain the regulated movers. "Workflow software, not a financial intermediary" is now a design test. → [Legal §2, Priority 2](legal.html)
- **L-6 → Priority 3 · Organizer compensation.** Stronger than most affiliate systems — commissions only on consumable Compute, never enrollment/governance/work/treasury/recruiting; earnings claims prohibited without statistics; initial-purchase question spun out as L-14. → [Legal §2, Priority 3](legal.html)
- **L-1 → Priority 4 · Worker classification.** 1099 confirmed; independent commercial agreements stated plainly; the never-introduce list (schedules, reviews, titles, exclusivity, mandatory training, supervision); W-9/W-8 + automated 1099 pipeline required from day one; one classification everywhere. → [Legal §2, Priority 4](legal.html)
- **L-2 → Priority 5 · Trust accounting.** Trust money is radioactive: IOLTA → matter ledger → disbursement authorization → operating treasury → splits; automation never touches funds in trust. → [Legal §2, Priority 5](legal.html)
- **L-4 → Priority 6 · Insurance (Lui Mutual).** Three phases (mutual aid → limited benefits where permitted → licensed mutual); never marketed as insurance or implying guaranteed coverage before licensure. → [Legal §2, Priority 6](legal.html)
- **L-7 → Priority 7 · Recusal.** Rule endorsed and generalized to full conflict-of-interest policy (software-enforced, permanently disclosed); drafting continues as L-13. → [Legal §2, Priority 7](legal.html)
