Defensive publication establishing prior art for Sovereign, a local-first architecture designed to protect digital intellectual property. The system establishes cryptographic identity, artifact lineage, and verifiable authorship proof without reliance on centralized services or cloud infrastructure. Sovereign combines local SHA-256 artifact fingerprinting, append-only provenance logging, embedded watermarking (including frequency-domain DCT watermarking for images), AI-powered artifact analysis using local BitNet agents running on CPU, vault capacity enforcement at the Rust processing pipeline layer, offline per-vault licensing using HMAC-SHA256 signed license files, and portable proof bundle export with self-verification script. Version 3.0 expands the original disclosure with frequency-domain watermarking, hard vault capacity limits, offline licensing mechanics, C2PA-aligned proof bundle mapping, and portable cold-storage deployment on removable media. This publication is intended to prevent future patent claims covering the same or substantially similar system design.