The presentation on Open Source licenses that I did for the FOSS 4 Gov conference. Explains Open Source licenses using analogies of property

1. Understanding
(Open Source) Software Licenses
22 Sep 2009, FOSS 4 Gov Conference, Sri Lanka
Chamindra de Silva
Director and PMC Member, Sahana Foundation
Technology Strategist, Global Technology Office, Virtusa
Committer, Apache
chamindra@opensource.lk | chamindra@virtusa.com
1 Open Source Software Licenses, 2009

2. Software License
Software Licenses are part of Software IP
What is
Software Intellectual Property?
2 Open Source Software Licenses, 2009

3. An Analogy
What is
Software Intellectual Property?
3 Open Source Software Licenses, 2009

4. An Analogy: Cont..
A House has a
Owner
Meet
Bill
4 Open Source Software Licenses, 2009

5. An Analogy: Cont..
What can Bill do with
His Property?
Owner
Bill
5 Open Source Software Licenses, 2009

6. An Analogy: Cont..
What can Bill do with
His Property?
Owner
Live Bill
in
All Rights
Reserved
6 Open Source Software Licenses, 2009

7. An Analogy: Cont..
What can Bill do with
His Property?
Owner
Ted
Sell x-Owner
Bill
$
Transfer
Ownership
7 Open Source Software Licenses, 2009

8. An Analogy: Cont..
What can Bill do with
His Property?
Tenant (User)
Ted
Lease Owner
Bill
$
Lease $
Agreement $
8 $ $ Open Source Software Licenses, 2009

9. 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
9 Open Source Software Licenses, 2009

10. 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
10 Open Source Software Licenses, 2009

11. 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
Software Software
User Owner
License
Contract
I promise not to sue you
I just clicked “I Agree”
As long as you stick to my
(but I did not read what I am agreeing to)
terms
11 Open Source Software Licenses, 2009

12. 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.
12 Open Source Software Licenses, 2009

13. 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
13 Open Source Software Licenses, 2009

14. Sample End User License Text - cont..
3. TERMINATION
Without 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. COPYRIGHT
All 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.
14 Open Source Software Licenses, 2009

15. Sample End User License Text - ..finally!
.
6. LIMITATION OF LIABILITY
In 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!
15 Open Source Software Licenses, 2009

16. Common License Terms
When you are not the rightful owner, you have to abide by
terms of your “software landlord” - especially a core application
•Point of Agreement •Termination
• Bound to terms by Installing • Without Prejudiced
• Activation within 30 days •Confidentiality
•Scope • Limitations on reverse
• One License for One CPU only engineering, decompiling
• Maximum 5 network connections • Software Owner allowed to
gather technical data on system
•Redistribution
• Can transfer copy to another •Sub-licensing / Rental
• Allowed to store software • You may not rent, lease or lend
product
•Territory •Warranty and Liability Limits
• Export restriction in alignment
with US law • 90 days for software obtained
from US and Canada
•Revocation of media • Limitation of Liability to cost of
• violating DRM software paid or $5.00
16 Open Source Software Licenses, 2009

17. “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
17 Open Source Software Licenses, 2009

18. Licenses Terms vary by Business Models
The Proprietary Revenue Model
• Related to the type of restriction applied
• Often Proportional to the restriction
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)
18 Open Source Software Licenses, 2009

19. 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
19 Open Source Software Licenses, 2009

20. If Bill was a Global Software Product Vendor
Cost of Production Zero, Cost of Distribution is Low,
Cost of getting a legal agreement from end user is Zero
$
$
$
$
$
$
$
Bill gets Very, Very Rich!
Not only that,
20 Bill owns property on computers all over the world!
Open Source Software Licenses, 2009

21. Some people don't like this..
Introducing
Richard
• 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
21 Open Source Software Licenses, 2009

22. 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
22 Open Source Software Licenses, 2009

23. Perpetual Freedoms for Users
Perpetual Freedoms for user
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
Software FOSS
User Owner
FOSS
License
I grant you these
Perpetual Rights
23 Thanks! It is like I own the software Open Source Software Licenses, 2009

24. Where to find the FOSS License
24 Open Source Software Licenses, 2009

25. 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 GNU General Public License (GPL) 3.0 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 zlib/libpng License 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%
25 Open Source Software Licenses, 2009

26. 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 to
Keep 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
26 Open Source Software Licenses, 2009

27. Software is mostly build from components
License of Manufacturer • Similar to a Car
• Software is made from
parts
• Components, Libraries
Frameworks, 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)
27 Open Source Software Licenses, 2009

28. 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
28 Open Source Software Licenses, 2009

29. Popular Software License Classifications
Proprietary Commercial (Microsoft EULA, Adobe, SAP)
• Traditional Proprietary Licenses
Proprietary 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
Propagate
Freedoms of Software
(Strong) Copyleft (GPL)
• Maintains copyright, free-ness of software modifications
• All derivative works have to be also Copyleft
Free & Weak Copyleft (LGPL, Mozilla PL)
Open Source • If used as a component in a larger project then any
license is OK
Permissive (BSD, Apache, MIT)
Freedom to
• Provides more Freedom to end user to what they want
User / business • Even make the modified version proprietary
Public Domain
• No copyright maintained
29 Open Source Software Licenses, 2009

30. Free alternatives: Freeware and Public Domain
Freeware = Proprietary • Public Domain = No Owner
software at zero cost (public property)
• Free as “Beer” vs Free as • Much closer to FOSS
in “Speech” provided code is also PD
• So does it matter? • PD not recognized in all
• Freeware can have jurisdictions
restrictions • e.g. France and Germany
• On type of use • Extra legal steps to make
(Personal or Non-profit) something PD or die+70
• Restrictions on distribution
• Can be abused
• Restrictions on modifications
• Work written by the US
Government is PD
30 Open Source Software Licenses, 2009

31. Your Guides to Valid FOSS Licenses
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/
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
OSI Approved License List http://www.opensource.org/licenses
31
Different Philosophy, but the same in Practice
Open Source Software Licenses, 2009

32. 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...
32 Open Source Software Licenses, 2009

33. CC: Easy to Understand Form – Commons Deed
• For the User
• In plain English
• And in many
Languages
• In other English
• US, UK
• Singapore
33 Open Source Software Licenses, 2009

34. CC: The Legal Form – Legal Code
• For the Courts
• Legal Terms
34 Open Source Software Licenses, 2009

35. CC: Machine Readable Form – Digital Code
• Easy for Search
Engines to find
• Easy for systems to
understand license
35 Open Source Software Licenses, 2009

36. 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
License
Contract A
Software Software
User Owner
License
Contract X
I cannot accept this agreement, Possibly
Can you give me a different one? let's Negotiate
• MySQL uses the Dual License Scheme by Default
• GPL and License that is GPL free (with warranty)
36 Open Source Software Licenses, 2009

37. 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!”
37 Open Source Software Licenses, 2009

38. 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
38 Open Source Software Licenses, 2009

39. Thank You!
Any Further Questions?
OSI-License Discuss List
http://www.opensource.org/lists
chamindra@opensource.lk
39 Open Source Software Licenses, 2009

40. 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
40 Open Source Software Licenses, 2009