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Using the Copyleft
                  Model in a Commercial
                    Business Set-up
                               Advokat Martin von Haller Groenbaek
                                     Partner, Bender von Haller Dragsted

                               ITECHLAW-ASIA, New Delhi, 19-20 February 2009




torsdag den 19. februar 2009                                                   1
Personalia
                               IT-Lawyer, partner at Bender von Haller Dragsted

                               Co-founder of Danish eBusiness Association (FDIH),
                               Danish Open Source Vendors Association (OSL),
                               Danish Chapter of Internet Society (ISOC DK), DK-
                               Hostsmaster A/S and the like

                               Board member of several Scandinavian SME IT
                               companies

                               Legal counsel to OSS developers and public
                               institutions (even works with Microsoft)


torsdag den 19. februar 2009                                                        2
Great times for open source law
                               From fringe to almost
                               mainstream
                               Tell us why we shouldn’t be
                               afraid
                               Now, show us the money
                               Licensing becomes fun!

torsdag den 19. februar 2009                                     3
Agenda
                               Copyleft INTRO
                               CASE: MySQL (Software
                               company)
                               CASE: LEGO (The private
                               business)
                               CASE: Danish NITA (eGovernment)

torsdag den 19. februar 2009                                     4
All OS licenses
                               The licensee has the right to run,
                               access, modify and distribute the code

                               The licensor gives no guarantees and
                               waives all liability

                               The licensor - the copyright holder -
                               can release code under several
                               licenses

torsdag den 19. februar 2009                                            5
Need to know about
                                    Copyleft
                               OS licenses gives you the right to modify the
                               code

                               You have copyright with respect to your
                               modifications

                               Permissive licenses gives you the right to
                               choose your own license terms

                               Copyleft forces you to license modification
                               under the original OS license, if you
                               distribute your modifications

torsdag den 19. februar 2009                                                   6
Key copyleft issues not
                         dealt with here
                               What is a modification?
                               What constitutes
                               distribution?
                               “Weak” or “Strong” copyleft
                               GPL v.2 vs. GPL v.3

torsdag den 19. februar 2009                                 7
CASE: MySQL
                                    Dual-licensing
                               The software company perspective

                               The same code is licensed under two
                               different licences:

                                 MySQL Community Server: GPL v.2
                                 with FOSS exception

                                 MySQL Enterprise: Commercial license


torsdag den 19. februar 2009                                            8
Copyright and control

                               MySQL has exclusive copyright to
                               the code
                               MySQL controls and certifies the
                               code
                               The GPL does not give any rights
                               to use MySQLs trademarks

torsdag den 19. februar 2009                                      9
Why pay?

                               Certification of the code
                               Warranties
                               Maintenance and support
                               Copyleft exemption

torsdag den 19. februar 2009                              10
Still not convinced?

                               MySQL AB was in 2008
                               bought by Sun Microsystem,
                               Inc. for approximately USD
                               $1 billion in total
                               consideration

torsdag den 19. februar 2009                                11
The Mindstorm story




torsdag den 19. februar 2009                         12
LEGO goes open source

                      1 May 2006. LEGO press release

                      Hackers, Get Ready! LEGO Group Announces
                      Open Source Firmware, Developer Kits for
                      LEGO® MINDSTORMS® NXT

                      Consu mer - directe d robotics experience
                      creation to enter “NXT” phase with open
                      firmware, Software, Hardware and Bluetooth
                      Developer Kits to launch in August

torsdag den 19. februar 2009                                      13
Background
                                   Mindstorms robots launched in 1998
                               ●



                                   The best-selling LEGO product ever
                               ●



                                   Huge Mindstorm community
                               ●



                                   LEGO was and is not a software
                               ●


                                   company
                                   Only minor upgrades to the
                               ●


                                   firmware
                                   Several parallel Mindstorms OS’s
                               ●




torsdag den 19. februar 2009                                            14
Challenges
                      LEGO was not comfortable with
                 ●


                      “openess”
                      LEGO has been and is extremely reliant
                 ●


                      on strong IPRs
                      ”You don't give away IPRs for free”
                 ●



                      Turbulent period for LEGO in general
                 ●



                      Third party software included
                 ●




torsdag den 19. februar 2009                                   15
Solution
                      Embrace User driven innovation
                 ●



                      Open source as the enabler
                 ●



                      Third party permission for redistribution
                 ●


                      under an OS license
                      Choice of license
                 ●



                        − ”Genuine”      open source licence
                        − Permissive       (Academic) or Copyleft
                               (reciprocal license)
torsdag den 19. februar 2009                                        16
The OS license choice
                       Mozilla Public license v. 1.1
                  ●



                       Weak copyleft
                  ●



                       Modification is limited altering the
                  ●


                       files
                       “I did not understand GPL v.2”
                  ●



                       LEGO was only concerned with
                  ●


                       modifications of the actual files
torsdag den 19. februar 2009                                 17
The “beauty” of the
                                     solution!
                               Huge press coverage and goodwill

                               Large number of downloads of code

                               Much more “intelligence” in the bricks

                               Convincing strategy towards competitors

                               Option to “close” the code again

                               Many more bricks sold!

torsdag den 19. februar 2009                                             18
CASE: NITA

                               Danish National IT and Telecom Agency

                               eFaktura (eInvoice)

                               Electronic invoices to, from and between
                               public agencies

                               Core service: UDDI registry for webservice
                               to identify senders and receivers



torsdag den 19. februar 2009                                                19
Challenges

                               Two applications provided by NITA to user
                               (e.g. ERP vendors)

                               API between users’ ERPs and UDDI WS

                               Reference implementation integrating API
                               with ERP

                               NITA wanted to release the application
                               under an OS license


torsdag den 19. februar 2009                                               20
Goals
                               Satisfying the politicians

                               Wide adoption of UDDI

                               Community based improvement of the
                               API

                               Many vendors should integrate API into
                               their ERP



torsdag den 19. februar 2009                                            21
Solutions
                               API

                                 Copyleft

                                 Mozilla public license v. 1.1 (maybe EUPL
                                 v. 1.1)

                               Reference implementation

                                 Permissive licence

                                 FreeBSD license


torsdag den 19. februar 2009                                                 22
Thanks for the
                                   attention!

                                          mhg@bvhd.dk
                                     martin@groenbaek.net
                                       http://www.bvhd.dk
                               http://suse.groenbaek.net/openlife

                                       Slides available at
                               http://www.slideshare.net/vonhaller


torsdag den 19. februar 2009                                         23

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Itechlaw Asia Commercial Copyleft (19 02 2009)

  • 1. Using the Copyleft Model in a Commercial Business Set-up Advokat Martin von Haller Groenbaek Partner, Bender von Haller Dragsted ITECHLAW-ASIA, New Delhi, 19-20 February 2009 torsdag den 19. februar 2009 1
  • 2. Personalia IT-Lawyer, partner at Bender von Haller Dragsted Co-founder of Danish eBusiness Association (FDIH), Danish Open Source Vendors Association (OSL), Danish Chapter of Internet Society (ISOC DK), DK- Hostsmaster A/S and the like Board member of several Scandinavian SME IT companies Legal counsel to OSS developers and public institutions (even works with Microsoft) torsdag den 19. februar 2009 2
  • 3. Great times for open source law From fringe to almost mainstream Tell us why we shouldn’t be afraid Now, show us the money Licensing becomes fun! torsdag den 19. februar 2009 3
  • 4. Agenda Copyleft INTRO CASE: MySQL (Software company) CASE: LEGO (The private business) CASE: Danish NITA (eGovernment) torsdag den 19. februar 2009 4
  • 5. All OS licenses The licensee has the right to run, access, modify and distribute the code The licensor gives no guarantees and waives all liability The licensor - the copyright holder - can release code under several licenses torsdag den 19. februar 2009 5
  • 6. Need to know about Copyleft OS licenses gives you the right to modify the code You have copyright with respect to your modifications Permissive licenses gives you the right to choose your own license terms Copyleft forces you to license modification under the original OS license, if you distribute your modifications torsdag den 19. februar 2009 6
  • 7. Key copyleft issues not dealt with here What is a modification? What constitutes distribution? “Weak” or “Strong” copyleft GPL v.2 vs. GPL v.3 torsdag den 19. februar 2009 7
  • 8. CASE: MySQL Dual-licensing The software company perspective The same code is licensed under two different licences: MySQL Community Server: GPL v.2 with FOSS exception MySQL Enterprise: Commercial license torsdag den 19. februar 2009 8
  • 9. Copyright and control MySQL has exclusive copyright to the code MySQL controls and certifies the code The GPL does not give any rights to use MySQLs trademarks torsdag den 19. februar 2009 9
  • 10. Why pay? Certification of the code Warranties Maintenance and support Copyleft exemption torsdag den 19. februar 2009 10
  • 11. Still not convinced? MySQL AB was in 2008 bought by Sun Microsystem, Inc. for approximately USD $1 billion in total consideration torsdag den 19. februar 2009 11
  • 12. The Mindstorm story torsdag den 19. februar 2009 12
  • 13. LEGO goes open source 1 May 2006. LEGO press release Hackers, Get Ready! LEGO Group Announces Open Source Firmware, Developer Kits for LEGO® MINDSTORMS® NXT Consu mer - directe d robotics experience creation to enter “NXT” phase with open firmware, Software, Hardware and Bluetooth Developer Kits to launch in August torsdag den 19. februar 2009 13
  • 14. Background Mindstorms robots launched in 1998 ● The best-selling LEGO product ever ● Huge Mindstorm community ● LEGO was and is not a software ● company Only minor upgrades to the ● firmware Several parallel Mindstorms OS’s ● torsdag den 19. februar 2009 14
  • 15. Challenges LEGO was not comfortable with ● “openess” LEGO has been and is extremely reliant ● on strong IPRs ”You don't give away IPRs for free” ● Turbulent period for LEGO in general ● Third party software included ● torsdag den 19. februar 2009 15
  • 16. Solution Embrace User driven innovation ● Open source as the enabler ● Third party permission for redistribution ● under an OS license Choice of license ● − ”Genuine” open source licence − Permissive (Academic) or Copyleft (reciprocal license) torsdag den 19. februar 2009 16
  • 17. The OS license choice Mozilla Public license v. 1.1 ● Weak copyleft ● Modification is limited altering the ● files “I did not understand GPL v.2” ● LEGO was only concerned with ● modifications of the actual files torsdag den 19. februar 2009 17
  • 18. The “beauty” of the solution! Huge press coverage and goodwill Large number of downloads of code Much more “intelligence” in the bricks Convincing strategy towards competitors Option to “close” the code again Many more bricks sold! torsdag den 19. februar 2009 18
  • 19. CASE: NITA Danish National IT and Telecom Agency eFaktura (eInvoice) Electronic invoices to, from and between public agencies Core service: UDDI registry for webservice to identify senders and receivers torsdag den 19. februar 2009 19
  • 20. Challenges Two applications provided by NITA to user (e.g. ERP vendors) API between users’ ERPs and UDDI WS Reference implementation integrating API with ERP NITA wanted to release the application under an OS license torsdag den 19. februar 2009 20
  • 21. Goals Satisfying the politicians Wide adoption of UDDI Community based improvement of the API Many vendors should integrate API into their ERP torsdag den 19. februar 2009 21
  • 22. Solutions API Copyleft Mozilla public license v. 1.1 (maybe EUPL v. 1.1) Reference implementation Permissive licence FreeBSD license torsdag den 19. februar 2009 22
  • 23. Thanks for the attention! mhg@bvhd.dk martin@groenbaek.net http://www.bvhd.dk http://suse.groenbaek.net/openlife Slides available at http://www.slideshare.net/vonhaller torsdag den 19. februar 2009 23