foss4gov: understanding open source licenses

1 Open Source Software Licenses, 2009

Understanding

(Open Source) Software Licenses

22 Sep 2009, FOSS 4 Gov Conference, Sri Lanka

Chamindra de SilvaDirector and PMC Member, Sahana Foundation

Technology Strategist, Global Technology Office, VirtusaCommitter, Apache

[email protected] | [email protected]

mailto:[email protected]

mailto:[email protected]


Software License

What is Software Intellectual Property?

Software Licenses are part of Software IP


An Analogy

What is Software Intellectual Property?


An Analogy: Cont..

A House has a Owner

MeetBill


An Analogy: Cont..

What can Bill do withHis Property?

OwnerBill


An Analogy: Cont..


OwnerBillLive

in

All RightsReserved


An Analogy: Cont..


x-OwnerBill

Sell

TransferOwnership

OwnerTed

$


An Analogy: Cont..


OwnerBill

Lease

LeaseAgreement

Tenant (User)Ted

$

$$

$

$


But is Software like a Building?

• Software is Not Hardware • It is an intangible

• Represented in flip-flops, magnetic/optical media

• Software is like a Recipe• It is Creative

• It Invokes Actions

• Software is like a Literary Work• Code is written in text

• Written in a programming language

Law supports software as a Literary Work


Unlike Books however..

With Software :

• The cost of production is zero•Very easy to copy illegally

• The cost of distribution is very low ( e.g. internet)

• It is hard to differentiate the original copy

• For someone to use he often has to make a copy•From CD to Harddisk on Installation

It is hard to put bounds to Software Copying..

Software is always Leased


Software Lease (aka License)

Defn: A software license is a contract between a software publisher and an end-user of software. A software license grants an end-user permission to use one or more copies of software in ways which would otherwise be prohibited by law

LicenseContract

I promise not to sue youAs long as you stick to my

terms

I just clicked “I Agree”(but I did not read what I am agreeing to)

SoftwareOwner

SoftwareUser


Sample End User License Text

END-USER LICENSE AGREEMENT FOR {INSERT PRODUCT NAME} IMPORTANT PLEASE READ THE TERMS AND CONDITIONS OF THIS LICENSE AGREEMENT CAREFULLY BEFORE CONTINUING WITH THIS PROGRAM INSTALL: {INSERT COMPANY NAME's } End-User License Agreement ("EULA") is a legal agreement between you (either an individual or a single entity) and {INSERT COMPANY NAME}. for the {INSERT COMPANY NAME} software product(s) identified above which may include associated software components, media, printed materials, and "online" or electronic documentation ("SOFTWARE PRODUCT"). By installing, copying, or otherwise using the SOFTWARE PRODUCT, you agree to be bound by the terms of this EULA. This license agreement represents the entire agreement concerning the program between you and {INSERT COMPANY NAME}, (referred to as "licenser"), and it supersedes any prior proposal, representation, or understanding between the parties. If you do not agree to the terms of this EULA, do not install or use the SOFTWARE PRODUCT.

The SOFTWARE PRODUCT is protected by copyright laws and international copyright treaties, as well as other intellectual property laws and treaties. The SOFTWARE PRODUCT is licensed, not sold.

1. GRANT OF LICENSE.The SOFTWARE PRODUCT is licensed as follows:(a) Installation and Use.{INSERT COMPANY NAME} grants you the right to install and use copies of the SOFTWARE PRODUCT on your computer running a validly licensed copy of the operating system for which the SOFTWARE PRODUCT was designed.


Sample End User License Text - cont..

(b) Backup Copies.You may also make copies of the SOFTWARE PRODUCT as may be necessary for backup and archival purposes.

2. DESCRIPTION OF OTHER RIGHTS AND LIMITATIONS.(a) Maintenance of Copyright Notices.You must not remove or alter any copyright notices on any and all copies of the SOFTWARE PRODUCT.(b) Distribution.You may not distribute registered copies of the SOFTWARE PRODUCT to third parties. Evaluation versions available for download from {INSERT COMPANY NAME}'s websites may be freely distributed.(c) Prohibition on Reverse Engineering, Decompilation, and Disassembly.You may not reverse engineer, decompile, or disassemble the SOFTWARE PRODUCT, except and only to the extent that such activity is expressly permitted by applicable law notwithstanding this limitation.(d) Rental.You may not rent, lease, or lend the SOFTWARE PRODUCT.(e) Support Services.{INSERT COMPANY NAME} may provide you with support services related to the SOFTWARE PRODUCT ("Support Services"). Any supplemental software code provided to you as part of the Support Services shall be considered part of the SOFTWARE PRODUCT and subject to the terms and conditions of this EULA.(f) Compliance with Applicable Laws.You must comply with all applicable laws regarding use of the SOFTWARE PRODUCT


Sample End User License Text - cont..

3. TERMINATIONWithout prejudice to any other rights, {INSERT COMPANY NAME} may terminate this EULA if you fail to comply with the terms and conditions of this EULA. In such event, you must destroy all copies of the SOFTWARE PRODUCT in your possession.

4. COPYRIGHTAll title, including but not limited to copyrights, in and to the SOFTWARE PRODUCT and any copies thereof are owned by {INSERT COMPANY NAME} or its suppliers. All title and intellectual property rights in and to the content which may be accessed through use of the SOFTWARE PRODUCT is the property of the respective content owner and may be protected by applicable copyright or other intellectual property laws and treaties. This EULA grants you no rights to use such content. All rights not expressly granted are reserved by {INSERT COMPANY NAME}.

5. NO WARRANTIES{INSERT COMPANY NAME} expressly disclaims any warranty for the SOFTWARE PRODUCT. The SOFTWARE PRODUCT is provided 'As Is' without any express or implied warranty of any kind, including but not limited to any warranties of merchantability, noninfringement, or fitness of a particular purpose. {INSERT COMPANY NAME} does not warrant or assume responsibility for the accuracy or completeness of any information, text, graphics, links or other items contained within the SOFTWARE PRODUCT. {INSERT COMPANY NAME} makes no warranties respecting any harm that may be caused by the transmission of a computer virus, worm, time bomb, logic bomb, or other such computer program. {INSERT COMPANY NAME} further expressly disclaims any warranty or representation to Authorized Users or to any third party.


Sample End User License Text - ..finally!

.6. LIMITATION OF LIABILITYIn no event shall {INSERT COMPANY NAME} be liable for any damages (including, without limitation, lost profits, business interruption, or lost information) rising out of 'Authorized Users' use of or inability to use the SOFTWARE PRODUCT, even if {INSERT COMPANY NAME} has been advised of the possibility of such damages. In no event will {INSERT COMPANY NAME} be liable for loss of data or for indirect, special, incidental, consequential (including lost profit), or other damages based in contract, tort or otherwise. {INSERT COMPANY NAME} shall have no liability with respect to the content of the SOFTWARE PRODUCT or any part thereof, including but not limited to errors or omissions contained therein, libel, infringements of rights of publicity, privacy, trademark rights, business interruption, personal injury, loss of privacy, moral rights or the disclosure of confidential information.

• Not a technician; You need a lawyer to install software!


Common License Terms

•Point of Agreement

• Bound to terms by Installing• Activation within 30 days

•Scope• One License for One CPU only

• Maximum 5 network connections

•Redistribution• Can transfer copy to another

• Allowed to store software

•Territory• Export restriction in alignment

with US law

•Revocation of media

• violating DRM

•Termination

• Without Prejudiced

•Confidentiality• Limitations on reverse

engineering, decompiling

• Software Owner allowed to gather technical data on system

•Sub-licensing / Rental• You may not rent, lease or lend

product

•Warranty and Liability Limits• 90 days for software obtained

from US and Canada

• Limitation of Liability to cost of software paid or $5.00

When you are not the rightful owner, you have to abide by terms of your “software landlord” - especially a core application


“Proprietary” Software License

• Proprietary Software is software with restrictions on using, copying and modifying as enforced by the copyright holder

•Control is placed by• Legal Means

• Copyright, patents and licensing

• Technical Means• Releasing only Binaries, Dongles, DRM

• Each Vendor has their own licenses• With their own unique terms

• e.g. Microsoft, Oracle, Adobe, SAP, Shareware

Many, Many Software Licenses


Licenses Terms vary by Business Models

The Proprietary Revenue Model

• Related to the type of restriction applied

• Often Proportional to the restriction

•Revenue is balance between License and Professional Services

Criteria Restriction Type

Software Copies (e.g. electronically / shrink wrapped)Functionality (e.g. versioning)

Hardware Configuration (e.g. number of processors )Computing Power (e.g. transactions per sec)

Users Number of Users (e.g. floating or fixed)Status of Users (e.g. personal or educational)

Usage Transactions (e.g. by MB scanned)Time (e.g. annual, subscription)


Different License Acceptance Mechanisms

• Shrink wrap license • Purchase it from a shop

• By breaking of the seal you accept the license

• Click wrap license• Agree to the license on click

of a button

• Browse wrap license• User is made aware of the

existence of a license but he does not have to click it

• Bare or Implied License• Implied by usage


If Bill was a Global Software Product Vendor

$

$

$

$

$

$$

Bill gets Very, Very Rich!

Cost of Production Zero, Cost of Distribution is Low, Cost of getting a legal agreement from end user is Zero

Not only that, Bill owns property on computers all over the world!


Some people don't like this..

• Richard thinks Bill is doing some form of• “Electronic Colonization”

• Richard thinks users should have more rights/Freedoms

• Richard creates the Free Software Foundation

• More Importantly he creates a new type of License:Free (& Open Source) Software License GPL→

IntroducingRichard


Free and Open Source Software License

Free and Open Source Software (FOSS) License protects the right of users to study, change, and improve its design through the availability of its source code.

• It uses Copyright Law (and spins it on it's head)

•No payment to software to owner

• 4 Freedoms to users almost like ownership

• Software as-is; No warranty


Perpetual Freedoms for Users

Perpetual Freedoms for userFreedom 0: The freedom to run the program for any purpose. Freedom 1: The freedom to study and modify the program. Freedom 2: The freedom to copy the program Freedom 3: The freedom to improve the program, and release

your improvements to the public

FOSSLicense

SoftwareUser

FOSSOwner

I grant you thesePerpetual Rights

Thanks! It is like I own the software


Where to find the FOSS License


The many types of FOSS Licenses

Rank License %1 GNU General Public License (GPL) 2.0 49.53%2 GNU Lesser General Public License (LGPL) 2.1 9.52%3 Artistic License (Perl) 8.79%4 BSD License 2.0 6.30%5 5.31%6 Apache License 2.0 3.96%7 MIT License 3.89%8 Code Project Open 1.02 License 3.26%9 Mozilla Public License (MPL) 1.1 1.23%10 Microsoft Public License (Ms-PL) 1.19%11 Common Public License (CPL) 0.58%12 0.45%13 Eclipse Public License (EPL) 0.45%14 Academic Free License 0.41%15 GNU Lesser General Public License (LGPL) 3.0 0.41%16 Open Software License (OSL) 0.33%17 Mozilla Public License (MPL) 1.0 0.28%18 Common Development and Distribution License (CDDL) 0.28%19 PHP License Version 3.0 0.25%20 Ruby License 0.24%

GNU General Public License (GPL) 3.0

zlib/libpng License


GNU General Public License (GNU GPL)

•By Far the most popular (64%) FOSS License

•Maintained by the Free Software Foundation

•Maintains Free-ness of Software

• Distribute to other under GPL

• Derivative works has also toKeep to Free Terms of GPL

•Reciprocal or CopyLeft License

•Exploiting Loopholes is pointless

• Reason for GPL v2, GPL v3, AGPL

• Keep to the intent of license


Software is mostly build from components

• Similar to a Car• Software is made from

parts

• Components, LibrariesFrameworks, SDKs

• Each part (component)• Comes from a part vendor

• Each Vendor has their license and terms

• Unlike a Car• All components are leased

to the manufacturer

• License for car has to be compatible with license for parts (eg GPL-Compatible)

License of Manufacturer


Permissive Software Licenses

• Permissive FOSS Licenses (> 15%)• Apache v2.0

• BSD

• MIT License

• Conditions• Does not have conditions on

maintaining free-ness of derivative works

• “Car Manufacturer” can include Permissive licensed component without issues

• Thus it is Business Friendly• Product Vendors Mainly

• Apache is a good example • IBM, Microsoft, etc


Popular Software License Classifications

Proprietary Commercial (Microsoft EULA, Adobe, SAP) • Traditional Proprietary Licenses

Freeware• Free to use, no access to source, other conditions apply

Restricted Access Source (Microsoft MS-Pl, MS-Cl)• Restricted access to certain parties only or closed groups

(Strong) Copyleft (GPL)• Maintains copyright, free-ness of software modifications• All derivative works have to be also Copyleft

Weak Copyleft (LGPL, Mozilla PL)• If used as a component in a larger project then any

license is OK

Permissive (BSD, Apache, MIT)• Provides more Freedom to end user to what they want• Even make the modified version proprietary

Public Domain• No copyright maintained

Free &Open Source

Proprietary

Freedom to User / business

PropagateFreedoms of Software


Free alternatives: Freeware and Public Domain

Freeware = Proprietary software at zero cost

• Free as “Beer” vs Free as in “Speech”

• So does it matter?

• Freeware can have restrictions

• On type of use (Personal or Non-profit)

• Restrictions on distribution

• Restrictions on modifications

• Public Domain = No Owner(public property)

• Much closer to FOSS provided code is also PD

• PD not recognized in all jurisdictions

• e.g. France and Germany

• Extra legal steps to make something PD or die+70

• Can be abused

• Work written by the US Government is PD


Your Guides to Valid FOSS Licenses

An open-source license is

1. Non-discriminatory freedom to Use

2. Copying and Distribution without royalties

3. Modification without any royalties

4. Open and easily Available source code

Free as in “Freedom of use” Freedom 0: The freedom to run the program for any purpose. Freedom 1: The freedom to study and modify the program. Freedom 2: The freedom to copy the program Freedom 3: The freedom to improve the program, and

release your improvements to the public

FSF Approved License List http://www.fsf.org/licensing/licenses/

OSI Approved License List http://www.opensource.org/licenses

Different Philosophy, but the same in Practice

http://www.fsf.org/licensing/licenses/

http://www.opensource.org/licenses


Software Includes Digital Media

• CC understood the problem with Software Licenses

• Makes creating and understanding media licenses easier

• License build by combining the 4 basic building blocks

• Licenses

• License Provided in Three Forms...


CC: Easy to Understand Form – Commons Deed

• For the User

• In plain English

• And in many Languages

• In other English

• US, UK

• Singapore


CC: The Legal Form – Legal Code

• For the Courts

• Legal Terms


CC: Machine Readable Form – Digital Code

• Easy for Search Engines to find

• Easy for systems to understand license


Don't like the License: Ask for another one!?

• Remember the license is the default lease agreement with the copyright holder (owner can decide to do anything)

• The owner can choose to give you a different lease contract

• MySQL uses the Dual License Scheme by Default• GPL and License that is GPL free (with warranty)

LicenseContract A

Possibly let's Negotiate

I cannot accept this agreement,Can you give me a different one?

SoftwareOwner

SoftwareUser

LicenseContract X


Those not adhering to the license contracts

http://www.bsa.org/globalstudy/upload/2007-Losses-Global.pdf

• Software Piracy in Asia is high• Obeying only part of the terms is still illegal• “Piracy is proprietary vendors unofficial shareware!”

http://www.bsa.org/globalstudy/upload/2007-Losses-Global.pdf


Some Tips On FOSS Licenses for Gov

• If you do not have time to interpret a license go with Common FOSS Licenses

• GPL, LGPL, Apache, BSD, MIT

• A lot of these licenses are proven in court

• If it not common• First check with the OSI and FSF license list to see if there is an

interpretation

• GPL, LGPL is generally not an issue for Government • A government is like an enterprise (not a product vendor)

• The License is not enough sometimes • Check the origins of the code

• The maturity of the project and community matters

• If all fails • You can ask for a different license from the copyright holder


Thank You!

Any Further Questions?OSI-License Discuss List

http://www.opensource.org/lists

[email protected]

http://www.opensource.org/lists


References and Attribution

[1] Understanding software license and services agreements – J. Riely, P. McGuigan

[2] Software License Agreements, Ignore at your own risk - Edward Desautels

[3] The Rise of Open Source Licensing – M. Valimaki

[4] Primer on Intellectual Property - Foley Lardner[5] Wikipedia references on Software Intellectual Property

[6] Creative Commons Website - by Attribution License[7] Virtusa Intellectual Property Training Material [8] Intellectual Property Law – Tina Hart, et al

[9] Free Software Foundation Website[10] Open Source Initiative Website

foss4gov: understanding open source licenses

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