A speech delivered to the audience of Ruby City Matsue, Japan on the 15th of March 2013.

1. Open Source:
Business and Governance
By Shane Martin Coughlan

2. About Me
Owner, Opendawn Consulting
Regional Director Asia, Open Invention Network
Executive Director / Vice President Far East,
OpenForum Europe
Visiting Researcher, Shimane University

3. Overview
Software is a knowledge product
Open Source is a management approach
It uses licenses to create a situation that delivers
value

4. Old vs New
Intellectual Property law was traditionally used to
restrict freedom
Open Source uses Intellectual Property law to
grant freedom

5. The Basic Approach
Use, Study, Share and Improve
Keep these freedoms for subsequent users
(Copyleft)

6. The Result
Open Source licenses allows many stakeholders
with many different motives to work together
This collaboration drives value

7. Open Source is Big Business
49 Billion USD global market in 2011
Figures from Linux Foundation

8. Business Models
Development
Integration
Support
Hosted Services
(just about anything except per unit licensing)

9. Early Governance
It was all about the licenses
There was a narrow focus on compliance

10. Common Problems
People don't read the licenses
People don't follow the license terms

11. Simple Solutions
Read the licenses
Follow the terms

12. Modern Governance
Honor obligations in procurement and deployment
Maximize value throughout the supply chain

13. Lifecycle Management
What types of code do you use and why?
How do you manage change?
How do you ensure your obligations are met?
How is this applied through the supply chain?

14. Modern Solutions
There are commercial and non-commercial
approaches to addressing these challenges
For example, companies like Black Duck Software
provide lifecycle management tools
Meanwhile, websites like FOSSBazaar.org
provide shared governance information

15. The Patent Problem
Patents remain a challenge for Open Source
For example, third parties may use them to restrict
competition from Open Source products

16. Addressing This
Open Invention Network (OIN) was established by
Red Hat, IBM, NEC, Sony, Novell and Philips
It runs a non-aggression community with over 400
participants
It also has a large defensive portfolio

17. Open Source = Shared Platforms
Stakeholders collaborate across market
segments to obtain value from and
protect shared platforms like Linux

18. Case Study: Management
Linux Foundation helps stakeholders collaborate
around Linux in the US, Europe and Asia
It runs meetings, working groups and conferences
to encourage shared understanding

19. Case Study: Legal
The European Legal Network helps 280
stakeholders collaborate across 4 continents
It runs private mailing lists, special interest groups
and conferences to share knowledge

20. In Summary
Open Source governance used to be focused on
understanding licenses as obligations
Now it is about maximizing potential through
shared rules to improve collaboration
Collaboration drives value and is also used to
address challenges as they arise

21. The Future...
Open Source will be refined to increase returns
and reduce risk

22. However...
How stakeholders collaborate and how they
leverage IPR is a rational decision
Not everyone gets value from Open Source
The market balance between proprietary and
Open Source approaches remains undetermined