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OSS & the Law
Megan Costello, J.D.
Elliott & Davis, PC
MEET MEG:
Tech Enthusiast
  • Freelance Web Designer
  • BS in IST/SRA
• Lawschool Grad with JD
  in IP & High-Tech Law
• Works @ Elliott & Davis, PC
• Goal?
Make Law More Accessible to
Fellow Technologists!!!
MY FIRM
Not Your Typical Law Firm!!
 Mid-Sized,Multi-Practice Firm
 Technologist Friendly
 Pittsburgh Cyberlaw
 Forward-Thinking
 First B-Corp in Pgh!
 Competitively  Priced
 Fun, Inviting Atmosphere
DISCLAIMER
(You Saw this Coming…)
THIS PRESENTATION IS NOT MEANT
TO BE USED AS LEGAL ADVICE…

SO BEFORE YOU DO
ANYTHING, TALK TO A LAWYER ONE-
ON-ONE…
DISCLAIMER
(You Saw this Coming…)
THIS PRESENTATION IS NOT MEANT
TO BE USED AS LEGAL ADVICE…

SO BEFORE YOU DO ANYTHING,
TALK TO A LAWYER ONE-ON-ONE…
….PRETTY PLEASE? 
Open Source Software(OSS) IS:
 Softwarereleased with source code for the
 purpose of free and open development

 Generally    collaborative effort

 Promotes
         free access to information for the
 advancement of technology.

 Similar   ideas:
        Crowd-Sourced Data, OSHW, Creative Commons, etc
WHY OSS ROCKS!
 Security
 Affordability
 Transparency
 Perpetuity
 Interoperability
 Localization
WHY OSS GETS A BAD REP
COMMON MYTHS:

 OSS   IS THE “KISS OF DEATH” TO IP!

 YOU   WILL NEVER GET FUNDED WITH
 OSS!

 YOU   WILL NEVER MAKE MONEY WITH
 OSS!
THE REALITY
 There
      are ways to avoid IP battles with
 Open Source Software

 There
      are ways to attract funding with
 Open Source Software

 There
      are ways to make money with
 Open Source Software
MYTH #1:
OPEN SOURCE
SOFTWARE IS THE KISS
OF DEATH   TO
INTELLECTUAL
PROPERTY
IP BASICS:
Creations of the mind used in commerce!
Copyrights
Trademarks
Trade Secrets
Patents
OUR FOCUS TONIGHT:
COPYRIGHT BASICS:
 Covers Original Artistic Expression in a
 “Fixed, Tangible Medium”

FOR CODE?
Extends to both source code AND object code

 Attaches   Immediately // Life of Author +70 Years.

 Federal   Enforcement Requires Registration ($35!)
COPYRIGHT:
Just A Big Ol’ Bundle of Sticks.
WHERE © GETS TRICKY
DerivativeWorks
Works for Hire




      +            +   +


     = ????????????????
Derivative Works
   Captures Major Elements of
    an Already Copyrighted Work
   Needs to be “Original” to
    Register
   NO RIGHT to Original
    Copyrighted Material

SOFTWARE CONCERN:
Who Owns a Derivative Work?
Works Made for Hire
   Commissioned work for
    another person or
    company
   Commissioning
    person/company generally
    owns copyright

SOFTWARE CONCERN:
Does my employer own the
copyright when I make
software on my own time?
The Solution?
Software Licensing!!
 License= Binding Contract
  Between You and User(s)
 Set of Rules that Control:
   Who Owns ©
   What may be used
   Who may use it
   How it may be used
   What happens when you break the contract
   Other stuff and legal jargon…



PS: You Still Own the Copyright!!
Software Licensing Spectrum
                                                             PROPRIETARY
NOT OSS                 TRADITIONAL OSS                      SOFTWARE

                                Weakly           Strongly       Closed
 Public Domain   Permissive
                               Protective       Protective      Source



What Isn’t OSS?
Public Domain:                              Closed Source
• Free of all Restrictions                  • Many Specific ©
• © Given to Public at Large                  restrictions
• Use for Any Purpose                       • Privately Owned/Licensed
• No License Required!
Where OSS Licenses Fit In:
                            Weakly               Strongly
    Permissive
                           Protective           Protective

Permissive:           Weakly Protective:       Strongly Protective:
• All © rights        • Hybrid © Protection    • Many © restrictions
  Granted to                                     on bundling rights
  Licensee            • Open Components
                        (Software Libraries)   • “Share and Share
• Software may          can be used by           Alike” ideology
  become                proprietary software
  proprietary
                      • Components Can’t       • “Copyleft”
• Attribution Req’d     turn proprietary

Ex: MIT License       Ex: LGPL                 Ex: GPLv3
WHAT IS:
Copyleft?
 Not   an IP Type…
     LICENSING STRUCTURE!


 Requires
        Others to Grant:
  SAME BUNDLE OF RIGHTS

 Keeps   Source Free!
(“as in speech, not as in free beer”)
Famous Copyleft License:
 GNU GPLv3
 Unlimited Copies
 Unlimited Distribution
 Charging for Software is OK!
    But be up-front with the GPL!
 Unlimited    Modifications
  But  anything that uses this code
     must also be released under the
     GPL
Choosing the Right License


Many Pre-Made Licenses Approved by OSI
  Varying Degrees of Permissions
  Varying Degrees of Communities
  Cheaper/Safer Legally
  Promotes Compatibility


List of Licenses HERE:
http://opensource.org/licenses
A Word of Caution!
Not all Licenses
Play Well Together!
 Combining   Licenses could
  be potentially LETHAL to IP!
 Be sure to
  READ ALL LICENSES…
 Consult a lawyer to make
  sure things don’t go bad
MYTH #2:

YOU WILL NEVER
GET FUNDED!!!!!
TRUTH:
  Traditional Funding = HARD
Angel Investors/Seed Funding/Incubators:

  Go   For Equity
 “piece of the pie”

  Love   “Clean IP”

  Scared of Taking
   Major Risks
Closed-Source License:
Accountable!
Enforceable!
Straight-Forward!


“SAFE” INVESTMENT CHOICE
OSS LICENSES
OSS Licenses are Enforceable BUT:
 Ownership?
 Control?
 Accountability?
 Attribution?
 License Compatibility?


“RISKY” INVESTMENT CHOICE
Solution?
Look For Different Funding Sources
  Crowdsourcing
      Kickstarter: www.kickstarter.com
      Freedom Sponsors: http://www.freedomsponsors.org/

  Donations
      Gittip: https://www.gittip.com/


  OSS   Friendly Organizations/Incubators
      Apache Software Foundation: http://www.apache.org/
MYTH #3:
YOU WILL NEVER MAKE
MONEY WITH OPEN
SOURCE SOFTWARE!!!!!
Remember This?

                                                       PROPRIETARY
 NOT OSS                TRADITIONAL OSS                SOFTWARE

                              Weakly       Strongly        Closed
Public Domain   Permissive
                             Protective   Protective       Source
Truth:
“Free” Code ≠ No Revenue
 All   Licenses let you sell the software you make

 Some Licenses let you turn it into proprietary
 software!
(Permissive, some Weakly Protective)

 There    are other ways to make money with OSS
Solution?:
THINK OUTSIDE THE BOX
Change Your Business Model!
    Let the software be secondary


Offer Support & Warranties
    Red Hat, Novell, Mozilla


Create Premium Add-Ons
    Wordpress
TAKEAWAYS!
Do:
 Talk
    to a Lawyer
 Familiar With IP & OSS Licensing!
 Account    for All Code!
 Read All   Licenses!
 Think   Outside the Box!
 Always   Place Licenses on Your Work!
TAKEAWAYS!
DON’T:
 Use   Code You Can’t Account For!
 Combine    Licenses Carelessly!
 Tryto Pass Off OSS as Proprietary
 Software
 Get   Discouraged!!!!!
Thanks! QUESTIONS?
Contact Me!! meg@elliott-davis.com

    PittsburghCyberlaw.com

   pghcyberlaw.tumblr.com

   @pghcyberlaw

   facebook.com/pghcyberlaw

   PghCyberlaw

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Open Source Software and the Law Slides 12/7/12

  • 1. OSS & the Law Megan Costello, J.D. Elliott & Davis, PC
  • 2. MEET MEG: Tech Enthusiast • Freelance Web Designer • BS in IST/SRA • Lawschool Grad with JD in IP & High-Tech Law • Works @ Elliott & Davis, PC • Goal? Make Law More Accessible to Fellow Technologists!!!
  • 3. MY FIRM Not Your Typical Law Firm!!  Mid-Sized,Multi-Practice Firm  Technologist Friendly Pittsburgh Cyberlaw  Forward-Thinking First B-Corp in Pgh!  Competitively Priced  Fun, Inviting Atmosphere
  • 4. DISCLAIMER (You Saw this Coming…) THIS PRESENTATION IS NOT MEANT TO BE USED AS LEGAL ADVICE… SO BEFORE YOU DO ANYTHING, TALK TO A LAWYER ONE- ON-ONE…
  • 5. DISCLAIMER (You Saw this Coming…) THIS PRESENTATION IS NOT MEANT TO BE USED AS LEGAL ADVICE… SO BEFORE YOU DO ANYTHING, TALK TO A LAWYER ONE-ON-ONE… ….PRETTY PLEASE? 
  • 6. Open Source Software(OSS) IS:  Softwarereleased with source code for the purpose of free and open development  Generally collaborative effort  Promotes free access to information for the advancement of technology.  Similar ideas:  Crowd-Sourced Data, OSHW, Creative Commons, etc
  • 7. WHY OSS ROCKS!  Security  Affordability  Transparency  Perpetuity  Interoperability  Localization
  • 8. WHY OSS GETS A BAD REP COMMON MYTHS:  OSS IS THE “KISS OF DEATH” TO IP!  YOU WILL NEVER GET FUNDED WITH OSS!  YOU WILL NEVER MAKE MONEY WITH OSS!
  • 9. THE REALITY  There are ways to avoid IP battles with Open Source Software  There are ways to attract funding with Open Source Software  There are ways to make money with Open Source Software
  • 10. MYTH #1: OPEN SOURCE SOFTWARE IS THE KISS OF DEATH TO INTELLECTUAL PROPERTY
  • 11. IP BASICS: Creations of the mind used in commerce! Copyrights Trademarks Trade Secrets Patents
  • 13. COPYRIGHT BASICS:  Covers Original Artistic Expression in a “Fixed, Tangible Medium” FOR CODE? Extends to both source code AND object code  Attaches Immediately // Life of Author +70 Years.  Federal Enforcement Requires Registration ($35!)
  • 14. COPYRIGHT: Just A Big Ol’ Bundle of Sticks.
  • 15. WHERE © GETS TRICKY DerivativeWorks Works for Hire + + + = ????????????????
  • 16. Derivative Works  Captures Major Elements of an Already Copyrighted Work  Needs to be “Original” to Register  NO RIGHT to Original Copyrighted Material SOFTWARE CONCERN: Who Owns a Derivative Work?
  • 17. Works Made for Hire  Commissioned work for another person or company  Commissioning person/company generally owns copyright SOFTWARE CONCERN: Does my employer own the copyright when I make software on my own time?
  • 18. The Solution? Software Licensing!!  License= Binding Contract Between You and User(s)  Set of Rules that Control:  Who Owns ©  What may be used  Who may use it  How it may be used  What happens when you break the contract  Other stuff and legal jargon… PS: You Still Own the Copyright!!
  • 19. Software Licensing Spectrum PROPRIETARY NOT OSS TRADITIONAL OSS SOFTWARE Weakly Strongly Closed Public Domain Permissive Protective Protective Source What Isn’t OSS? Public Domain: Closed Source • Free of all Restrictions • Many Specific © • © Given to Public at Large restrictions • Use for Any Purpose • Privately Owned/Licensed • No License Required!
  • 20. Where OSS Licenses Fit In: Weakly Strongly Permissive Protective Protective Permissive: Weakly Protective: Strongly Protective: • All © rights • Hybrid © Protection • Many © restrictions Granted to on bundling rights Licensee • Open Components (Software Libraries) • “Share and Share • Software may can be used by Alike” ideology become proprietary software proprietary • Components Can’t • “Copyleft” • Attribution Req’d turn proprietary Ex: MIT License Ex: LGPL Ex: GPLv3
  • 21. WHAT IS: Copyleft?  Not an IP Type…  LICENSING STRUCTURE!  Requires Others to Grant: SAME BUNDLE OF RIGHTS  Keeps Source Free! (“as in speech, not as in free beer”)
  • 22. Famous Copyleft License: GNU GPLv3  Unlimited Copies  Unlimited Distribution  Charging for Software is OK!  But be up-front with the GPL!  Unlimited Modifications  But anything that uses this code must also be released under the GPL
  • 23. Choosing the Right License Many Pre-Made Licenses Approved by OSI  Varying Degrees of Permissions  Varying Degrees of Communities  Cheaper/Safer Legally  Promotes Compatibility List of Licenses HERE: http://opensource.org/licenses
  • 24. A Word of Caution! Not all Licenses Play Well Together!  Combining Licenses could be potentially LETHAL to IP!  Be sure to READ ALL LICENSES…  Consult a lawyer to make sure things don’t go bad
  • 25. MYTH #2: YOU WILL NEVER GET FUNDED!!!!!
  • 26. TRUTH: Traditional Funding = HARD Angel Investors/Seed Funding/Incubators:  Go For Equity “piece of the pie”  Love “Clean IP”  Scared of Taking Major Risks
  • 28. OSS LICENSES OSS Licenses are Enforceable BUT:  Ownership?  Control?  Accountability?  Attribution?  License Compatibility? “RISKY” INVESTMENT CHOICE
  • 29. Solution? Look For Different Funding Sources  Crowdsourcing Kickstarter: www.kickstarter.com Freedom Sponsors: http://www.freedomsponsors.org/  Donations Gittip: https://www.gittip.com/  OSS Friendly Organizations/Incubators Apache Software Foundation: http://www.apache.org/
  • 30. MYTH #3: YOU WILL NEVER MAKE MONEY WITH OPEN SOURCE SOFTWARE!!!!!
  • 31. Remember This? PROPRIETARY NOT OSS TRADITIONAL OSS SOFTWARE Weakly Strongly Closed Public Domain Permissive Protective Protective Source
  • 32. Truth: “Free” Code ≠ No Revenue  All Licenses let you sell the software you make  Some Licenses let you turn it into proprietary software! (Permissive, some Weakly Protective)  There are other ways to make money with OSS
  • 33. Solution?: THINK OUTSIDE THE BOX Change Your Business Model!  Let the software be secondary Offer Support & Warranties  Red Hat, Novell, Mozilla Create Premium Add-Ons  Wordpress
  • 34. TAKEAWAYS! Do:  Talk to a Lawyer Familiar With IP & OSS Licensing!  Account for All Code!  Read All Licenses!  Think Outside the Box!  Always Place Licenses on Your Work!
  • 35. TAKEAWAYS! DON’T:  Use Code You Can’t Account For!  Combine Licenses Carelessly!  Tryto Pass Off OSS as Proprietary Software  Get Discouraged!!!!!
  • 36. Thanks! QUESTIONS? Contact Me!! meg@elliott-davis.com PittsburghCyberlaw.com pghcyberlaw.tumblr.com @pghcyberlaw facebook.com/pghcyberlaw PghCyberlaw