Distribution In Open Source Itech Law Asia (05 02 2010)

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The "long" version of my presentation on Distribution in Open Source at ITECHLAW Asia 2010 in Bangalore, 5 February 2010.

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Distribution In Open Source Itech Law Asia (05 02 2010)

  1. 1. Distribution in Open Source Martin von Haller Groenbaek partner, Bender von Haller Dragsted ITECHLAW ASIA 2010 Bangalore, 5 February 2010 torsdag den 4. februar 2010 1
  2. 2. – Attorney-at-law, Bender von Haller Dragsted – Co-founder, Open Source Vendors Ass. (OSL) – Editorial board IFOSSLR – Co-founder, Creative Commons DK – Co-founder, Danish Internet Society Chapter – http://www.bvhd.dk – http://www.openlife.dk – http://www.vonhaller.dk – http://www.linkedin.com/in/vonhaller – http://www.23hq.com/mhg – http://www.slideshare.net/vonhaller – http://www.facebook.com/vonhaller – mhg@bvhd.dk – martin@groenbaek.net – groenbaek@gmail.com torsdag den 4. februar 2010 2
  3. 3. Questions - What is Distribution? - Why does distribution matter? - Is there a business model? torsdag den 4. februar 2010 3
  4. 4. Intro - Open source gives you four rights or freedoms - Run the object code - Access source code - Modify it - Make and transfer copies torsdag den 4. februar 2010 4
  5. 5. Intro - Whether you distribute or not, you will enjoy these four freedmos - You can do whatever you want with the code, as long as you don’t distribute it - (if within the granted user rights) - But many of the normal restrictions will not be applicable torsdag den 4. februar 2010 5
  6. 6. Intro - If you don’t distribute none of the normal restrictions apply - No Copyleft - No preservation of copyright notices - No preservation of license terms - Your patents are unaffected torsdag den 4. februar 2010 6
  7. 7. Modification? • Droit moral? torsdag den 4. februar 2010 7
  8. 8. Intro - Distribution triggers copyleft - Distribution is presumed in most OSS license violation cases torsdag den 4. februar 2010 8
  9. 9. Kudos to torsdag den 4. februar 2010 9
  10. 10. US Copyright law - Distribution means... - "distribute copies...of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending" (7 USC section 106 (3)) torsdag den 4. februar 2010 10
  11. 11. Any differences? - US: - Distribution is publication - Publication is any transfer (also private) - Nordics: - Distribution is publication - But publication is not private transfers torsdag den 4. februar 2010 11
  12. 12. The difference - US: Whenever a copy changes hand, you have distribution and you need permission - Nordic: You don’t need permission, if you distribute privately (Consumption rules apply) torsdag den 4. februar 2010 12
  13. 13. OSS licenses • “Traditional” OSS licenses are US-centric • Notable exceptions are EUPL and GPLv3 torsdag den 4. februar 2010 13
  14. 14. GPL v2 - Different terms - “distribute” - “redistribute” (sec 6) - “physical act of transferring a copy” (sec 1, 3rd paragraph) - “distribute or publish” (sec 2,litra b. ) torsdag den 4. februar 2010 14
  15. 15. GPL v2 - Transferring af copy regardless of the medium - Transfer from one person to another - To goal is to preserve the freedoms - The US concept of “distribution” torsdag den 4. februar 2010 15
  16. 16. Other OSS licenses - BSD license - “Redistribution” - MIT License - “Publish, distribute” torsdag den 4. februar 2010 16
  17. 17. Other OSS Licenses - Apache License, Version 2.0 - “publicly display, publicly perform, sublicense, and distribute the Work” (sec 2) - “reproduce and distribute copies” (sec 4) - Eclipse Public License - v 1.0 - “publicly display, publicly perform, distribute” (Sec 2, litra a) - Open Software License ("OSL") v. 3.0 - “distribute or communicate copies” (sec 1, litra c) torsdag den 4. februar 2010 17
  18. 18. GPL v3 - To “propagate” a work means to do anything with it that, without permission, would make you directly or secondarily liable for infringement under applicable copyright law, except executing it on a computer or modifying a private copy. Propagation includes copying, distribution (with or without modification), making available to the public, and in some countries other activities as well torsdag den 4. februar 2010 18
  19. 19. GPL v3 - To “convey” a work means any kind of propagation that enables other parties to make or receive copies. Mere interaction with a user through a computer network, with no transfer of a copy, is not conveying. torsdag den 4. februar 2010 19
  20. 20. EUPL v1.1 - “Distribution and/or Communication: any act of selling, giving, lending, renting, distributing, communicating, transmitting, or otherwise making available, on-line or off-line, copies of the Work or providing access to its essential functionalities at the disposal of any other natural or legal person.” (sec 1) torsdag den 4. februar 2010 20
  21. 21. Creative Commons - "Distribute" means to make available to the public the original and copies of the Work or Adaptation, as appropriate, through sale or other transfer of ownership torsdag den 4. februar 2010 21
  22. 22. Rules of thumb - Not distinctions between commercial or non-commercial - Physical copies must be transferred - The transferee must be a third party - All “public” transfers are distribution - Some “private” transfers may not be distribution torsdag den 4. februar 2010 22
  23. 23. Employees - Not distribution - A third party but an agent - A “private” distribution torsdag den 4. februar 2010 23
  24. 24. Subsidiaries • 100% owned subsidiaries • Legally a third party • US: Probably not distribution due to unity of ownership doctrine • Nordic: Probably not distribution as the transaction is not marketbased (“private”) torsdag den 4. februar 2010 24
  25. 25. Contractors - The contractor is a third party - A physical copy is transferred (as opposed to work on internal servers) - US: Distribution - Nordic: Probably a “private” transfer, thus not a distribution - Pay the contractor to develop your modification on your own servers - You cannot impose an NDA on the contractor torsdag den 4. februar 2010 25
  26. 26. Outsourcing - The contractor is a third party - A physical copy is transferred (as opposed to work on internal servers) - US: Distribution - Nordic: Probably a “private” transfer, thus not a distribution torsdag den 4. februar 2010 26
  27. 27. M&A - Only assets, not share, sales - The acquiror is a third party - A physical copy is transferred - US: Distribution - Nordic: Distribution - But both parties share interests! torsdag den 4. februar 2010 27
  28. 28. ASP loophole • Does Google release its modifications? • Making functionality available via the Internet is not distribution • A physical copy of the code is not transferred • Copyleft is not triggered • Network exception in GPLv3 torsdag den 4. februar 2010 28
  29. 29. The Business model - Dual licensing - The copyright holder can license under different licenses - Licensees that need to avoid copyleft provisions can buy a different license torsdag den 4. februar 2010 29
  30. 30. Case study torsdag den 4. februar 2010 30
  31. 31. Thank you for your attention Presentation also available at http://www.slideshare.net/vonhaller torsdag den 4. februar 2010 31

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