The Great Enterprise LLM Decoupling: Weight-Space IP Contagion, Orthogonal Backprop-Burn Infeasibility, Hardware-Enforced No-Learn Attestation, and Mandatory Third-Party Model Purge under Delaware Caremark Standards

Abstract: Global enterprise technology stacks—most notably Dow Jones Industrial Average (DJIA) constituents and sovereign cloud operators—are executing an unprecedented structural purge of third-party frontier Large Language Models (LLMs), epitomized by the enterprise decoupling from external black-box providers ("Goodbye, Claude"). While superficially interpreted as cost optimization or routine vendor consolidation, this monograph proves that the decoupling is driven by an acute, existential legal and mathematical crisis: Weight-Space Intellectual Property (IP) Contagion and Fiduciary Liability Transmission. Building upon our forensic analysis of cross-border training data laundering (Project Panama, Record 23311531) and our Biological & Algorithmic IP Protection Covenants (NLL-v1.0-2026, Record 23358010), we establish four foundational results: (1) We formulate the Weight-Space Contagion Theorem, proving via non-diagonal Hessian cross-derivative coupling ($\nabla^2_{\theta} \mathcal{L}_{\mathcal{D}}$) that copyrighted works and sovereign trade secrets ingested during pre-training or fine-tuning cannot be surgically "unlearned" post-hoc without inducing catastrophic perplexity collapse (Orthogonal Backprop-Burn Infeasibility); (2) We model Transitive Enterprise Contamination, demonstrating how API outputs, synthetic distillation, and IDE code completions transmit copyright taint ($\phi_{\text{taint}} \to 100\%$) directly into proprietary corporate repositories; (3) We design a Hardware-Enforced Zero-Gradient Attestation Architecture ($\pi_{\text{no-learn}}$) utilizing Trusted Execution Environments (TEEs) and recursive STARK proofs over the 64-bit Goldilocks field ($\mathbb{F}_p, p = 2^{64} - 2^{32} + 1$) to guarantee mathematically that enterprise inference and retrieval-augmented generation (RAG) execute with strictly zero weight updates ($\nabla_{\theta} W \equiv \mathbf{0}$); and (4) We prove under Delaware General Corporation Law (Caremark standard) and SEC Rule 15c3-5 / Item 1.05 disclosure mandates that corporate boards retaining un-auditable third-party LLMs after receiving constructive notice of supply-chain IP laundering face personal, non-exculpated liability for bad-faith breach of the duty of loyalty. Finally, we codify a 4-stage Enterprise Decoupling Protocol transitioning global infrastructure from contaminated black-box APIs to sovereign, clean-room verified in-house AI stacks.

Authors

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-10-14
DOI
https://doi.org/10.5281/zenodo.23360529
Primary Topic
Law, AI, and Intellectual Property
Type
preprint
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
preprint

The Great Enterprise LLM Decoupling: Weight-Space IP Contagion, Orthogonal Backprop-Burn Infeasibility, Hardware-Enforced No-Learn Attestation, and Mandatory Third-Party Model Purge under Delaware Caremark Standards

Yoko Hasebe
Zenodo (CERN European Organization for Nuclear Research)
Law, AI, and Intellectual Property
preprint

The Great Enterprise LLM Decoupling: Weight-Space IP Contagion, Orthogonal Backprop-Burn Infeasibility, Hardware-Enforced No-Learn Attestation, and Mandatory Third-Party Model Purge under Delaware Caremark Standards

Yoko Hasebe
preprint en

Abstract

Abstract: Global enterprise technology stacks—most notably Dow Jones Industrial Average (DJIA) constituents and sovereign cloud operators—are executing an unprecedented structural purge of third-party frontier Large Language Models (LLMs), epitomized by the enterprise decoupling from external black-box providers ("Goodbye, Claude"). While superficially interpreted as cost optimization or routine vendor consolidation, this monograph proves that the decoupling is driven by an acute, existential legal and mathematical crisis: Weight-Space Intellectual Property (IP) Contagion and Fiduciary Liability Transmission. Building upon our forensic analysis of cross-border training data laundering (Project Panama, Record 23311531) and our Biological & Algorithmic IP Protection Covenants (NLL-v1.0-2026, Record 23358010), we establish four foundational results: (1) We formulate the Weight-Space Contagion Theorem, proving via non-diagonal Hessian cross-derivative coupling ($\nabla^2_{\theta} \mathcal{L}_{\mathcal{D}}$) that copyrighted works and sovereign trade secrets ingested during pre-training or fine-tuning cannot be surgically "unlearned" post-hoc without inducing catastrophic perplexity collapse (Orthogonal Backprop-Burn Infeasibility); (2) We model Transitive Enterprise Contamination, demonstrating how API outputs, synthetic distillation, and IDE code completions transmit copyright taint ($\phi_{\text{taint}} \to 100\%$) directly into proprietary corporate repositories; (3) We design a Hardware-Enforced Zero-Gradient Attestation Architecture ($\pi_{\text{no-learn}}$) utilizing Trusted Execution Environments (TEEs) and recursive STARK proofs over the 64-bit Goldilocks field ($\mathbb{F}_p, p = 2^{64} - 2^{32} + 1$) to guarantee mathematically that enterprise inference and retrieval-augmented generation (RAG) execute with strictly zero weight updates ($\nabla_{\theta} W \equiv \mathbf{0}$); and (4) We prove under Delaware General Corporation Law (Caremark standard) and SEC Rule 15c3-5 / Item 1.05 disclosure mandates that corporate boards retaining un-auditable third-party LLMs after receiving constructive notice of supply-chain IP laundering face personal, non-exculpated liability for bad-faith breach of the duty of loyalty. Finally, we codify a 4-stage Enterprise Decoupling Protocol transitioning global infrastructure from contaminated black-box APIs to sovereign, clean-room verified in-house AI stacks.

Zenodo (CERN European Organization for Nuclear Research)
Law, AI, and Intellectual Property
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.