IP & source licensing

License the extraction engine, the source, or the whole product

For companies where document extraction is core rather than incidental: license the source, take a perpetual IP licence, or acquire the product outright. What transfers is not just working code — it is the pipeline architecture, the bank profiles, the evaluation harness, and the ground-truth methodology that makes accuracy improvable rather than accidental.

  • Full source: Python extraction worker, Next.js application, and evaluation harness
  • The benchmark methodology transfers, so your team can keep improving accuracy
  • Perpetual, territory, and exclusive options available
  • Transition engineering support included in every structure

What is actually being licensed

The code is the smallest part of the value, and buyers who only evaluate the code tend to regret it. Anyone can write a script that calls an OCR API in an afternoon. What takes many release cycles of measured iteration to arrive at is everything around that call.

The routing logic that keeps 60–80% of pages off the expensive path. The column-header hints that stop a Debit/Credit/Balance grid from collapsing into prose. The sign-reconciliation pass that infers direction from running balances instead of trusting a label. The balance check that catches errors no confidence score reports. The constrained-JSON normalization with tolerant parsing, so one malformed model response does not fail a 300-page document. The vision-escalation gate that improves the worst pages without multiplying cost across all of them.

And underneath all of it: a ground-truth evaluation harness scoring every field against hand-written expected values from real statements, which is the only reason any of those decisions can be shown to help rather than merely believed to.

Licensing structures

Source licence, non-exclusive

Full source code, perpetual right to use and modify inside your organisation, no obligation to contribute changes back. I continue to operate and license the product to others.

Source licence, exclusive by segment

Exclusivity within a defined vertical, geography, or customer segment. Priced against the business it forecloses, and requires a committed term.

Perpetual IP licence

Broad rights to the technology including the right to sublicense, while I retain ownership. The common structure for companies embedding extraction across a product portfolio.

Full acquisition

Product, code, domain, brand, customers, and benchmark methodology transfer. Structured with a transition period so the knowledge moves, not just the repository.

Acqui-hire style engagement

IP transfer combined with a defined period of my engineering time to embed the system into your stack and train your team to own it.

Technology partnership

Joint development where you fund extensions to the engine for your domain and receive a licence to the result. Suits teams with a specific document class and no extraction specialists.

What transfers in a source licence

ComponentDescription
Python extraction workerRouting, OCR integration, vision escalation, normalization, sign reconciliation, balance validation
Next.js applicationUpload, preview, exports, auth, billing, API keys, developer console
Developer APIAsync upload, status polling, result fetch, key management, quotas, usage logging
MCP serverAgent-callable interface over the same pipeline
Evaluation harnessGround-truth scoring, per-statement postmortems, A/B comparison, CI accuracy gate
Bank profilesLayout knowledge accumulated across production conversions
Deployment assetsContainerisation, worker orchestration, environment configuration, runbook
DocumentationArchitecture, failure modes, extension guide, and the accuracy methodology

Included in every licensing structure

  • Transition engineering support so the system is understood, not just delivered
  • A working deployment in your environment before the engagement closes
  • The evaluation harness and the ground-truth methodology behind it
  • Architecture and failure-mode documentation
  • An agreed period of question-answering access after handover
  • Warranties and IP representations appropriate to the structure

How the process runs

First a call to establish what you actually need — some companies arrive asking to buy the product when a white-label arrangement would serve them better and cost an order of magnitude less. I will say so.

Then, under NDA, technical diligence: architecture walkthrough, code review, benchmark results, and a live run on your own documents so accuracy claims are verified rather than accepted. You should insist on that last step with any vendor.

Then structure and price, which depend on exclusivity, term, and how much transition engineering is included. Then documentation, transfer, deployment, and handover, with a support period afterwards.

Pricing is not published because these structures differ too much for a rate card to mean anything. Source licences and acquisitions are substantial commitments; if you are looking for a way to add statement parsing to a product for a monthly fee, the white-label option is the right page.

Frequently asked questions

Why would you license or sell technology you are actively operating?

Because a company with distribution in a vertical can build more value on this engine than I can reach alone, and because a well-structured licence funds deeper engineering. The two are not in conflict — non-exclusive licensing in particular leaves the product running while the technology reaches more places.

Is the accuracy claim verifiable before we commit?

Yes, and verifying it is part of diligence. You supply statements with known correct values, we score the engine against them together, and you see the failures as well as the successes. The evaluation harness is exactly the tool for this, which is why it transfers with the licence.

What are the ongoing dependencies?

The hosted configuration depends on external model APIs for OCR and normalization. A licensee can run the same architecture entirely on self-hosted open-weight models — that configuration and its accuracy characteristics are documented, and standing it up is available as part of the transition engagement.

Can we license only part of it?

Yes. The extraction worker is the most commonly licensed component on its own, without the web application or billing. The evaluation harness can also be licensed separately, and for some teams it is the highest-value piece.

What does diligence require from us?

A signed NDA, a technical reviewer who can assess extraction systems, and a set of documents with known correct values for the accuracy verification. Diligence typically runs two to four weeks.

Do you consider revenue-share instead of a fee?

For the right partner, yes — particularly where you bring distribution and I bring the engine. It has to be structured with real reporting obligations to be worth anything to either side.

Start with what you are trying to own

Tell me whether you need the capability, the code, or the company. The answer changes the structure completely, and getting that right early saves both of us a month.

Or email [email protected]

Related

This page is also available as markdown for AI agents: /licensing.md · index at /llms.txt. Canonical URL: https://parsemystatement.com/licensing.