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Open Source/Proprietary - An Issue of Two Codebases?

g00mba_b0y asks: "For the past year I and a small team of developers have been working on an open source targeted, general business application framework. I say targeted because we have not yet selected a licensing model and placed the code in the public domain (we are working on some specific functional targets). I recently demonstrated the framework to a potential client who liked what they saw, and wants to use the software for their flagship product. In addition, they want to hire me to further the development of the framework as well as participate in the development. The sticking point is the structure of the legal agreement. I'm really interested in two things: the experiences of developers who are doing something like this (how did you address the IP issues); and links to any information on this subject."

"We agree in principle that the framework related development that they will be funding should be available for open source licensing, while code related to their business should remain proprietary. The tough part is coming up with a legalese definition of where the boundary lies, and a means of addressing disagreements when they occur.

I've done my homework and found a ton of information on licensing strategies, motivations for OSS, etc., but nothing so far that addresses how companies, who are funding open source initiatives alongside commercial development efforts, draw the line between the two."

2 of 160 comments (clear)

  1. Open source != Public Domain by Shenkerian · · Score: 5, Informative
    I say targeted because we have not yet selected a licensing model and placed the code in the public domain (we are working on some specific functional targets).

    Repeat after me: placing IP into the public domain precludes any sort of licensing agreement.

    Public domain means you have no claim of ownership.

    --
    You tell me how "whilst" differs from "while," and I'll stop calling you a pretentious jackass.
  2. Copyright and Open Source license by JohnGrahamCumming · · Score: 5, Informative

    I assume from what you've written that the problem is that the person who wants to employ you does not want the source code to become open and you'd like to see an open source version of the code.

    The key thing to clear up is who owns the copyright on the code. If you own the copyright then you can choose how and when you release the code (open or closed). But it's vital that you keep control of the copyright since it gives you the maximum flexibility. (This is achieved in my project, POPFile, through the POPFile License Agreement).

    Specifically,

    1. You should make clear to the employer that you hold the copyright and that the code is valuable property which you are willing to license to them in exchange for X.

    X could be a job with them, or it could be $$$ or royalties. Exactly what depends on what you want out of the agreement.

    2. The license to the company needs to be non-exclusive (giving you the freedom to license to someone else), or exclusive with an exception for an open source version of the code.

    3. Once the agreement is in place release the code under the GPL. This will help protect the company's investment because anyone else using the code will be forced to release their code lowering the likelihood that someone else will try to make money off it.

    4. When you get contributions from the community who are using the GPL code make sure that you get signed agreements from the contributors transferring copyright to you so that your source base is not contaminated and you maintain control of the copyright. (I've included the text of the agreement we use for POPFile below for reference).

    5. Make clear in your contract with the company who owns copyright on the changes that they make or that you make while employed by them. The best solution is that you keep the copyright for yourself.

    6. You should expect that the open source version of the code will make the company lower what they are willing to pay (they are after all sharing the code with someone else). You need to argue back that in fact you will be leveraging the open source community to improve the product free of charge to them.

    The FSF has a page covering copyright issues here: http://www.fsf.org/licenses/gpl-faq.html
    and here: http://www.fsf.org/licenses/why-assign.html

    John.

    Here's what we use for POPFile...

    [snip]

    POPFILE LICENSE AGREEMENT

    CONTRIBUTION DESCRIPTION:

    John Graham-Cumming ("jgc") acknowledges, with many thanks, the receipt by jgc
    from Licensee of the above-described Contribution ("Contribution") to the
    POPFile software and its related documentation.

    Licensee confirms to jgc that, to the best of Licensee's knowledge and belief,
    the Contribution is free of any claims of parties other than Licensee under
    copyright, patent or other rights or interests ("claims"). To the extent that
    Licensee has any such claims, Licensee hereby grants to jgc a nonexclusive,
    irrevocable, royalty-free, worldwide license to reproduce, distribute, perform
    and/or display publicly, prepare derivative versions, and otherwise use the
    Contribution as part of the POPFile software and its related documentation, or
    any derivative versions thereof, at no cost to jgc or its licensed users and
    without any accounting obligation to Licensee of any kind, and to authorize
    others to do so.

    Licensee hereby acknowledges that jgc may, at his sole discretion, decide
    whether or not to incorporate the Contribution in the POPFile software and its
    related documentation.

    EXCEPT AS OTHERWISE PROVIDED HEREIN, LICENSEE MAKES NO REPRESENTATIONS OR
    WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE ABOVE-DESCRIBED
    CONTRIBUTION. BY WAY OF EXAMPLE, BUT NOT LIMITATION, LICENSEE MAKES NO AND
    DISCLAIMS ANY REPRESENTATION OR WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY
    PARTICULAR PURPOSE. IN NO EVENT SHALL LICENSEE BE LIABLE TO USERS OF THE
    CONTRIBUTION FOR ANY INCIDENTAL, SPECIAL OR CO