DISTRIBUTION & MARKETPLACE SOP v1.0

 

Program: Distribution & Marketplace

Derived From: ARC Canon v1.0 (Frozen)

Status: ACTIVE

Change Policy: FROZEN (Amendment Protocol only)

Entry Point: Issuance Enabled

Primary Outputs: Listings, Fulfilled Orders, Active Licenses, Distribution Audit

Criticality: REVENUE & VISIBILITY GATE

 

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0. SOP PROCESS CHAIN (AUTHORITATIVE)

 

Issuance Enablement → Channel Qualification → Listing Creation → Exposure Control → Transaction Execution → Fulfillment → Rights Enforcement → Revenue Settlement → Audit Closure

 

If any link is compromised, distribution halts.

 

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1. ENTRY CONDITIONS (DISTRIBUTION GATE)

 

1.1 Mandatory Preconditions

• MasterAsset.state = Activated

• RightsProfile locked

• EditionPolicy locked

• Utilities bound

• Pricing snapshot created

• Issuance explicitly enabled

 

1.2 Disallowed Conditions

• Listing prior to issuance enablement

• Platform exposure without utility binding

• Price overrides outside Pricing Snapshot

 

RULE:

Distribution is permissioned, not assumed.

 

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2. CHANNEL CLASSIFICATION (EXPOSURE CONTROL)

 

Each distribution surface is classified before use.

 

2.1 Canonical Channel Types

1. Internal Marketplace

2. Partner Marketplace

3. Licensing Desk

4. Physical Fulfillment

5. Streaming / Smart Display

6. Promotional Display (Non-Transactional)

 

Each channel must declare:

• Scope of rights exercised

• Transaction capability (yes/no)

• Fulfillment responsibility

• Reporting cadence

 

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2.2 Channel Qualification Checklist

• RightsProfile permits channel scope

• EditionPolicy allows issuance via channel

• Utility unlock satisfied

• Era RuleSet permits channel exposure

 

FAILURE MODE

• Any unmet condition → channel disabled for asset

 

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3. LISTING CREATION (CONTROLLED REPRESENTATION)

 

3.1 Listing Object Definition

 

Create a Listing per Edition per Channel.

 

Required Fields

• listing_id

• master_id

• edition_policy_id

• channel_id

• price_snapshot_id

• utility_id

• inventory_allocation

• display_assets[] (derivatives only)

• status (draft/active/paused/retired)

 

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3.2 Listing Rules

• Listings reference Editions, never the Master directly

• Inventory allocation cannot exceed remaining edition quantity

• Display assets must be approved derivatives

• No dynamic price logic post-activation

 

RULE:

Listings are mirrors of policy, not creative interpretations.

 

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4. EXPOSURE CONTROL (ANTI-DILUTION LAYER)

 

4.1 Exposure Parameters

 

Each active listing must define:

• Visibility scope (public/private/invite-only)

• Geographic constraints

• Time window (if temporal scarcity applies)

• Promotional allowances

 

4.2 Promotional Display Rules

• Promotional display does not imply ownership

• Watermarked or constrained derivatives required

• No download-capable assets unless utility permits

 

FAILURE MODE

• Unauthorized exposure → immediate takedown + incident log

 

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5. TRANSACTION EXECUTION (ECONOMIC EVENT)

 

5.1 Order Creation

 

Upon buyer action:

• Create Order

• Bind customer identity

• Snapshot pricing

• Reserve edition unit

 

5.2 Payment Validation

• Funds authorization required

• Fraud checks executed

• Jurisdiction compliance confirmed

 

5.3 Transaction Completion

• Edition unit marked Issued

• Utility bound to holder

• Order marked Paid

 

RULE:

Edition consumption occurs on issuance, not shipment.

 

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6. FULFILLMENT (PHYSICAL & DIGITAL)

 

6.1 Physical Fulfillment

• Generate print-ready derivative

• Validate format, size, material tier

• Assign fulfillment partner

• Track shipment and delivery

 

6.2 Digital Fulfillment

• Grant access per Utility

• Enable download or display rights

• Log access activation

 

6.3 Fulfillment Validation

• Fulfillment matches EditionPolicy constraints

• No excess copies produced

• Delivery confirmation logged

 

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7. RIGHTS ENFORCEMENT (POST-DELIVERY)

 

7.1 Enforcement Mechanisms

• Access controls

• License verification

• Display token validation (where applicable)

 

7.2 Violation Handling

• Detect misuse

• Revoke utility if permitted

• Escalate to RightsManager

 

RULE:

Enforcement is systemic, not reactive.

 

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8. REVENUE SETTLEMENT (FINANCIAL INTEGRITY)

 

8.1 Revenue Allocation

• Apply revenue share terms

• Allocate platform fees

• Record net proceeds

 

8.2 Settlement Timing

• Settlement schedule defined per channel

• Delays logged and tracked

 

8.3 Financial Records

• Immutable transaction ledger

• Cross-reference Order, Edition, Utility

 

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9. CHANNEL REPORTING & RECONCILIATION

 

9.1 Mandatory Reports

• Units issued vs. remaining

• Revenue by Edition

• Channel performance metrics

• Exposure vs. conversion

 

9.2 Reconciliation Rules

• Channel reports must reconcile with internal ledger

• Discrepancies trigger audit review

 

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10. AUDIT & COMPLIANCE (NON-NEGOTIABLE)

 

10.1 Mandatory Audit Events

• Listing creation and activation

• Inventory allocation

• Order creation

• Payment confirmation

• Fulfillment completion

• Revenue settlement

• Rights enforcement actions

 

10.2 Compliance Monitoring

• Over-issuance detection

• Unauthorized channel exposure

• Pricing deviation detection

 

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11. EXCEPTION HANDLING

 

11.1 Allowed Exceptions

• Fulfillment delay

• Channel outage

• Payment processor failure

 

11.2 Disallowed Exceptions

• Manual inventory override

• Post-sale price alteration

• Unauthorized derivative substitution

 

All exceptions require:

• Incident log

• Assigned owner

• Resolution record

 

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12. TERMINAL CONDITION

 

The SOP is successfully executed when:

• Listing lifecycle completed or retired

• Orders fulfilled

• Utilities active

• Revenue settled

• Audit trail complete

 

At this point, the asset may continue to circulate without structural risk.

 

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DECLARATION

 

DISTRIBUTION & MARKETPLACE SOP v1.0 is hereby declared ACTIVE and FROZEN.

 

Any distribution activity outside this SOP is non-canonical, non-compliant, and subject to revocation.