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    IN4MATX269: Computer Law

    Spring 2008

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    Software Licensing

    Anton Malyk, Ajey Shah, Alexander Behm

    University of California, IrvineInstructor: Prof. David G. Kay

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    IN4MATX269: Computer Law

    Spring 2008

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    ICS269: Computer Law

    Spring 2008

    Overview

    History of software and licenses

    Categories of licenses

    Software Foundations

    Popular licenses

    Comparison of licenses

    Working around licenses

    History of Unix Case Study: SCO vs. Linux

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    History of software

    Until early 1970s

    Sharing of source code was the accepted norm.

    There were groups formed for collaboration:

    MITSHARE IBMDECUS DEC

    No concerted effort to keep software free.

    Software was developed by the user community.

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    CHANGING TIMES

    In the late 1970s and early 1980s, companies began routinely imposingrestrictions on programmers through copyright.

    Motivated by financial gains by selling rights of use rather than giving the code.

    Bill Gates signaled the change of the times in 1976 when he wrote his now-

    famous Open Letter to Hobbyists.Wrote Altair BASIC for MITS.dismayed at the rampant copyright infringement taking place in thehobbyist communitySignaled that there was little incentive in making software available for free.Who can afford to do professional work for nothing?

    History of software (contd.)

    Beyond 1975

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    History of software (contd.)

    Richard Stallman from MIT

    GNU Project was established in 1983 to write a complete operating system free

    from constraints on use of its source code.disagreement between Stallman and Symbolics, Inc. over Stallman'saccess to changes Symbolics had made to a program he wrote.

    Problems with the kernel GNU HURD.

    Successful projectsGNU DebuggerGNU EmacsGNU Complier Collection

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    History of software (contd.)

    During the time 1975-1995 Microsoft continued to churn out proprietarysoftware products and increased its revenue.

    OS/2 in 1985

    Windows in 1986IPO in 1987Office in 1989

    Windows 3.0 1990

    Novell accused Microsoft of using inside information about its systems to makeOffice suite better than Word Perfect.

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    History of software (contd.)

    Linux 1991Linus Torvalds in Finland developed LinuxHe was not satisfied with MinixReleased freely modifiable source code in 1991Relicensed under GNU GPL in 1992

    386BSD 1993In California Bill Jolitz @ UC Berkeley

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    History of software (contd.)

    Open source initiated by Eric Raymond.Put Stallmans radical ideas into less intimidating formEmphazise business potential of sharing codeGet different fragmented free software groups together

    NetscapeNetscape Communicator released its codebase under NPL.

    Internet RevolutionApache HTTP Server

    PHPMySQLLAMP systems

    Birth of OpenSource - 1998

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    Current TrendsStrike a balance betweencommercial interests

    IP issuescollaboration in developmentreference code

    Open standardsOpen SocialOpen Handset Alliance

    Microsoft opens up with the SharedSource initiative.Port 25 open source software lab (interop)

    CodePlex opens source code hostingMicrosoft-PublicLicense(Ms-PL) (OSI Certified &GPL Compatible)Microsoft-ReciprocalLicense(Ms-RL) (OSICertified)

    Novell-Microsoft Interoperability

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    In brief

    Proprietary Open

    Pros Greater commercial valueLeads to more funds for researchBetter support

    Ability to modify codeAbility to re-distributeNo vendor lock

    Democracy!Cheaper?

    Cons Vendor Lock InAnti Trust

    Security IssuesExpensiveRestrictive use

    No guarantee offurther dev.

    IP issuesSupport andservicing?Difficult to monetize

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    Categories of softwareFree software

    anyone to use, copy, and distribute, either verbatim or withmodifications, either gratis or for a fee.Free software is a matter of freedom, not price.

    Open sourceMore or less same as Free softwareThey may accept some more restrictive licenses

    Copy left softwaredistribution terms ensure that all copies of all versions are free software

    Block means of turning future versions proprietaryGenerally no modifications can be made to the license

    4 269 C

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    Categories of licenses(cont.)Non free software

    SemiFree softwarepermission for individuals to use, copy, distribute, and modify(including distribution of modified versions) for non-profit purposes

    Proprietory software

    use, redistribution or modification is prohibited, or requires you toask for permission, or is restricted so much that you effectively can'tdo it freely

    Freewarecommonly used for packages which permit redistribution but notmodification (and their source code is not available)

    Sharewaresoftware which comes with permission for people to redistributecopies, but says that anyone who continues to use a copy is requiredto pay a license fee

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    Categories of licenses(cont.)Private software

    custom software is software developed for one user (typically anorganization or company).

    Commercial software

    developed by a business which aims to make money from the use of thesoftwareCan be open source software eg some software from RedHat, Novell orIBMCan be proprietary software e.g Microsoft

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    Software FoundationsFree Software Foundation

    Led by Richard StallmanPrinciple sponsor of GNU projectGoal: to advance software freedomSister organizations in Europe, Latin America, India

    Open Source InitiativeInteroperability the grand goal

    any license (free, open, or closed)any implementation

    any implementerOut of scope

    does not prescribe how open standards for software should becreated, debated, ratified, and maintained except that they notpreclude a viable implementation in open source.

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    Licenses Available

    GNU GPLStrong copyleft

    GNU LGPLNo copy left on linking libraries

    GNU AGPLCovers scenario of software run over a network

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    GNU GPL compatible open source licensesApache License 2.0Modified BSDFree BSDMicrosoft Public License

    Open LDAP License v2.7License of RubyLicense of Python 2.0.1 and newer

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    Charging Money for Free Software??

    High price hurt freeness?

    Fees and GNU GPL

    Special case restriction

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    License CRITERIA

    2. Free Redistribution3. Source Code

    4. Derived Works5. Integrity of The Author's Source Code6. No Discrimination Against Persons or Groups7. No Discrimination Against Fields of Endeavor8. Distribution of License9. License Must Not Be Specific to a Product10. License Must Not Restrict Other Software

    11. License Must Be Technology-Neutral

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    Popular licenses under Open Source InitiativeApache License, 2.0New and Simplified BSD licenses

    GNU General Public License (GPL)GNU Library or "Lesser" General Public License (LGPL)MIT license Mozilla Public License 1.1 (MPL)Common Development and Distribution License by Sun MicrosystemsCommon Public License 1.0 by IBMEclipse Public License

    IN4MATX269: Computer Law

    ICS269: Computer Law

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    Spring 2008

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    ICS269: Computer LawSpring 2008

    Overview

    History of software and licenses

    Categories of licenses

    Software Foundations

    Popular licenses

    Comparison of licenses

    Working around licenses

    History of Unix Case Study: SCO vs. Linux

    IN4MATX269: Computer Law

    ICS269: Computer Law

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    ICS269: Computer LawSpring 2008

    Overview

    Permissive

    GPL LGPL MPL

    X11/MIT

    Apache

    BSD

    Strong

    Copyleft

    Permissive licenses

    Restrictive

    Weak Copyleft

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    ICS269: Computer Law

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    ICS269: Computer LawSpring 2008

    Copyleft

    Copyright vs Copyleft

    Against software hoarding Strong vs Weak Copyleft

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    ICS269: Computer Law

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    ICS269: Computer LawSpring 2008

    GNU GPL(General Public License)

    Current versions: GPLv2,GPLv3

    Major products licensedunder GNU GPL: Linux kernel

    Almost all GNU projects

    excluding libraries Java 6, Qt, KDE, MySQL,

    Inkscape,

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    ICS269: Computer LawSpring 2008

    GNU LGPL(Lesser General Public License)

    Current versions: LGPLv2,LGPLv3

    Major products licensedunder GNU LGPL:GNU libraries, such as

    libgcc, libstdc++, etc

    OpenOffice, JBoss

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    ICS269: Computer Law

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    ICS269: Computer LawSpring 2008

    MPL(Mozilla Public License)

    Current version: 1.1

    Major products licensed

    under MPL:Mozilla Foundation products

    OpenSolaris, Adobe Flex,Erlang

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    pSpring 2008

    Apache Software License(ASL)

    Current version: 1.1, 2.0

    Major products licensed

    under Apache: Apache Software

    Foundation products Apache HTTP Server

    Huge collection of tools andlibraries

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    ICS269: Computer Law

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    BSD Licensesincluding MIT/X11

    Very short and simple

    Not a single license, but

    class of licenses Major products licensed

    under BSD-like licenses: All flavors of BSD operating

    systems X Windows System (X11)

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    BSD 3-clause License Redistributions of source code

    must retain the above copyrightnotice.

    Redistributions in binary form mustreproduce the above copyrightnotice.

    The name of the may not be used to endorse orpromote products derived from thissoftware without specific priorwritten permission.

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    GPL Compatibility What does it mean?

    Why is it important?

    Sourceforge.net statistics

    GPL

    65%

    Others

    20%

    LGPL

    9%

    BSD-

    like6%

    FSFs free software directory

    GPL

    89%

    Artistic

    1.9%

    LGPL

    7%

    BSD-like

    2%

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    Other criterias

    Proprietary Software linking

    Redistributing of the code with changes

    Distribution of the Work

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    pSpring 2008

    Comparison matrix

    GPL LGPL MPL3-clause

    BSD, MITApache

    GPL-compatible

    Compatible

    with GPLv3only

    ProprietarySoftwarelinking

    Redistributingof the codewith changes

    OnlyunderGPL

    Only underGPL orLPGL

    OnlyunderMPL

    Distributionof the Work

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    Static

    Linking

    Spring 2008

    Tricking GPL

    libjpeg My software

    GPL GPL

    libjpeg Thin client

    GPL GPL

    My software

    Commerciallicense

    Static Linking

    IPC

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    Spring 2008

    Overview

    History of software and licenses

    Categories of licenses

    Software Foundations

    Popular licenses Comparison of licenses

    Working around licenses

    History of Unix Case Study: SCO vs. Linux

    IN4MATX269: Computer Law

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    History of UNIX

    - Invented UNIX in ~1969

    - Licensed UNIX code to various manufacturers

    - Spawned multitude of commercial UNIX derivatives

    - UNIX is COMMERCIAL

    Ken Thompson (seated)

    Dennis Ritchie (standing)

    AT&T Bell Labs

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    History of UNIX

    GNU + Linux Torvalds = GNU/Linux

    Independently developed clone ofUNIX

    GNU = GNU is Not UNIX

    Linux = Linus + Minux

    UC Berkeley

    Heavy modifications toUNIX, cannot really beconsidered derivativework

    Major movements to build a free source UNIX(1990s)

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    History of UNIX

    Who owns UNIX IP?

    Sells To

    1993

    Sells To

    1995

    Sells to relationship is strongly simplified

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    Case: SCO vs. Linux

    Zeitgeist 2003

    You can always sue but can you win? It might be worth the risk

    - Upswing in intellectual property litigation

    - Tech industry had experienced some lucrative settlements

    - For example Intergraph received $450mio+$150mio from Intel in 2002

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    Case: SCO vs. Linux(starts with SCO vs. IBM)

    This presentation is a mix of the happenings in the press and in court

    The beginning in March 2003

    - Has license agreement with AT&T for UNIX

    - Contributes a lot to the Linux community

    - Has derivative UNIX work, AIX

    - Owns UNIX IP (bought from Novell)

    - Sells own Linux distribution

    - Most earnings from UNIX products

    - Business not going very well

    - Claims IBM used UNIX IP in their Linux work

    - Goes after the deep pockets!

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    Case: SCO vs. Linux

    May 2003

    SCO: Claims Linux kernel contains SCO code (without saying exactlywhere)

    Claims Linux is unauthorized derivative of UNIX

    Sends angry letters to about 1500 companies

    Plans on suing SuSe, RedHat and Novell (and others)

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    Case: SCO vs. LinuxOutline of important events:

    breach of contract, misappropriation of trade secrets

    contract: does SCO really own copyright?

    Buys UNIX license to support anti-Linux campaign?

    Revokes IBMs UNIX license, IBM does not care

    May 2003

    June 2003

    Fear develops over what if SCO is right?

    FSF points out SCOs case is flawed due to GPL

    Lawsuit has no effect on Linux deploymentsJuly 2003

    Linus Torvalds backs up FSF argument

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    Case: SCO vs. LinuxOutline of important events:

    SCO offers own Linux license ($799 per desktop)

    Sues for interference with business and patent infringement

    Sues for false advertising, false and deceptive practices

    August 2003

    October 2003

    Files counterclaims picking up FSF argument

    Threatens to sue individual Linux users

    September 2003

    GPL violates US constitution, export laws and copyright laws

    Threatens to sue special effects companies in Hollywood (?) November 2003

    To US Congress: GPL undermines system of IPJanuary 2004

    April 2004Removes claims that GPL violates constitution in court

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    Case: SCO vs. LinuxOutline of important events:

    Announces it will not issue more lawsuits

    Drops claim of patent infringement (no money to gain)

    Breach of contract. Novell entitled to 95% of income from UNIX

    August 2004

    Wants partial summary judgment (have not been paid)

    Wants summary judgment

    July 2005

    October 2005

    September 2006

    September 2007Files for bankruptcy

    Discussion goes back and forth whether SCO owns UNIX copyright

    SCO has still not brought enough evidence.

    Basically the end of the story.

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    SCO Stock Price Development From 2003 - 2008

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    Jan-03

    Apr-03

    Jul-03

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    Jan-07

    Apr-07

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    Date

    Stoc

    k

    Price

    Stock Price

    Beginning ofLawsuit

    SCO sends1500 angryletters

    IBM filescounterclaims,

    stating it violatedGPL and IBMscopyright

    SCO sends out morewarning letters

    SCO offers Linuxlicense, claimsGPL is invalid

    What ifSCO isright?

    GPL isvalid afterall

    IBM and Novellwant summary

    judgment

    SCO files forbankruptcy

    Novell entersgame, doubtingSCOs ownershipof UNIX

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    Case: SCO vs. Linux

    Summary of arguments in SCO case

    SCO:

    - Linux is derivative of UNIX

    - GPL is invalid- Linux contains SCO code

    Rest:

    - UNIX IP does not entirely belong to SCO

    - Code was released under GPL- Linux and SCOs common code come from thirdsource which is in public domain

    - SCOs code was stolen from Linux

    Basically a battle of money. In the end SCO was not able to scare the world into turningtheir backs on Linux or buying SCOs Linux license. SCO ran out of money.

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    Disclaimer

    We are not attorneys, and thispresentation is based upon ourinterpretations of the licenses and events,which may be incorrect. This informationhas been posted for our own use. It in noway constitutes legal advice. You shouldhire an attorney and read the licensesyourself before making any decisions.

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    Referenceshttp://www.gnu.orghttp://www.opensource.org/http://www.fsf.org/http://www.wikipedia.orghttp://www.microsoft.com/resources/sharedsource/default.mspx

    http://static.userland.com/userLandDiscussArchive/msg019844.html

    http://developer.kde.org/documentation/licensing/licenses_summary.htmlhttp://www.dwheeler.com/essays/gpl-compatible.htmlhttp://en.wikipedia.org/wiki/Open_source_license

    http://www.news.com/2100-1016-991464.htmlhttp://www.albion.com/security/intro-2.htmlhttp://www.linux.org/news/sco/timeline.htmlhttp://www.cyber.com.au/users/conz/linux_vs_sco_matrix.html