Is Free Software Really Free?

Dan Or-Hof, Adv.

Or-Hof Tech & IP Law [email protected]; www.or-hof.com

The Three Whats

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What is it?

§

What types?

§

What do we do with it?

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Chapter I: What is it?

Starts now Dan Or-Hof, Adv. Or-Hof Tech & IP Law

…”Licensor hereby grants Licensee a worldwide, non-exclusive, perpetual, revocable, non-sub-licensable, non transferable , royalty bearing right and license to install the software in a single hard drive /other storage device, and to use the Software in object code form , in accordance with its Documentation for internal business purposes only ….” Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Except as expressly and unambiguously permitted by this license agreement

indirectly to: (i) program, (iii)

distribute

Software, (ii) copy or

modify decompile

, Licensee may not, nor permit anyone else to, directly or , rent, lease, market, sublicense, resell or otherwise transfer the the Software either alone or in conjunction with any other product or , disassemble or

reverse engineer

all or any portion of the Software, except and only to the extent, that such activity is expressly permitted by applicable law notwithstanding this limitation.

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

The Proprietary License

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Copyright © Trade Secret Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Allowed Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Now Let’s Turn Everything Upside Down Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Instead Of Limited Purpose… (1) “ You may run the program for any purpose ” Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Instead of: “You may not modify…” (2) “ You may study how the program works & change the program ” Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Instead of: “You may not distribute, sublicense, resell…” (3) “ You may re-distribute the program ” Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Instead of: “You may not modify and distribute” (4) “ You may distribute your modified version ” Dan Or-Hof, Adv. Or-Hof Tech & IP Law

The Four Freedoms (1) Run for any purpose (2) Study & modify (3) Redistribute (4) Release modifications Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Why?

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Copyright © Trade Secret Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Free Software = Open Source Software (OSS; FOSS) Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Is it truly free?

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Chapter I: “What is it?” Just ended.

Chapter II: What types? starts Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Four types of OSS Or “

Free as in Freedom”

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type I I don’t care what you do with it WTFPL

“Do What the Fuck You Want with this Public License”

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

BeerWare “As long as you retain this notice, you can do whatever you want with this stuff.

If we meet some day, and you think this stuff is worth it, you can buy me a beer in return. Paul Henning Kamp.” Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type I – Free!

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

PD

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type II - Permissive 1.

Use and distribute - original and modifications; object or source form.

2.

3.

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type II - Permissive 1.

2.

Maintain copyright notice. © Dan Or-Hof Limited.

3.

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type II - Permissive 1.

2.

3.

No warranty. No liability. Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type II - Permissive

4.

If you modify – document it. Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type II - Permissive 1.

4 Freedoms. (source files release - optional).

2.

(Distribution) Copyright notice.

3.

4.

No warranty/liability. Document modifications.

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type II - Permissive BSD MIT Apache Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type II ~ Free

(+ potential no further source release) Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type III – Moderate reciprocity Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type III – Moderate reciprocity When distributing ) source files + modifications) And… Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type III – Moderate reciprocity Distribute under this license Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type III – Moderate reciprocity This means: No Viral Effect (Huh?) Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type III – Moderate reciprocity Four freedoms and Four Requirements I.

II.

III.

IV.

Copyright notice Source files License Modification notice Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type III Free? Yeah but… Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type III – Moderate reciprocity MPL CDDL LGPL Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type IV – Strict Reciprocity Four freedoms + Four restrictions + … Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type IV – Strict Reciprocity Anything connected becomes OSS (the “Viral Effect”) GPL Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type IV – Strict Reciprocity 1.

Four freedoms.

2.

3.

Four Requirements.

One obstacle .

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type IV – Strict Reciprocity Affected: Static/Dynamic linking Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type IV – Strict Reciprocity Not affected: pipes, sockets and command-line arguments Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type IV – Strict Reciprocity Especially for Cloud services AGPL Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Type IV – “ Free as in freedom”?

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Can I sell OSS?

(“not as in free beer”) Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Chapter II: What types? Just ended. Chapter III: What do we do with it? Starts now.

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Advantages

Quality [76% Accenture] Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Advantages

R&D time & costs Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Advantages

Vendor lock-in Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Advantages

Customizable Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Advantages

Mature and safe Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Forums documen tation Wikis Support Mailing Lists Dan Or-Hof, Adv. News Groups Or-Hof Tech & IP Law Forges

Some Stats Dan Or-Hof, Adv. Or-Hof Tech & IP Law

80% to 90% of SW projects contain at least one open source component Dan Or-Hof, Adv. Or-Hof Tech & IP Law

70% of applications fail common security standards (OWASP Top 10 and CWE/SANS Top 25) And with basic internal security policies.

[ Veracode State of Software report Vol. 5, Apr. 2013 ] Dan Or-Hof, Adv. Or-Hof Tech & IP Law

85% of software projects include at least one out-of-date open source component.

[

WhiteSource Software

]

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Risk I

Outdated insecure OSS Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Risk II

Non-compliance (injunctions) Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Risk III

Architecture Considerations Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Risk IV

No Warranty/Liability/indemnification (partially mitigated through services) Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Risk V No formal support Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Risk VI Patent license Dan Or-Hof, Adv. Or-Hof Tech & IP Law

So What Do We Do?

Contribute [98% v. 29% Accenture] Dan Or-Hof, Adv. Or-Hof Tech & IP Law

So What Do We Do?

Dual Licensing Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Dan Or-Hof, Adv.

Verizon Cisco Novell Skype D-link Fortinet

Or-Hof Tech & IP Law

So What Do We Do?

Compliance Dan Or-Hof, Adv. Or-Hof Tech & IP Law

So What Do We Do?

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Designate an officer Dan Or-Hof, Adv. Or-Hof Tech & IP Law

So What Do We Do?

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Know what you have Dan Or-Hof, Adv. Or-Hof Tech & IP Law

So What Do We Do?

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Form a process (receipt, use, security, maintenance) Dan Or-Hof, Adv. Or-Hof Tech & IP Law

So What Do We Do?

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Comply Dan Or-Hof, Adv. Or-Hof Tech & IP Law

So What Do We Do?

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Audit Third Parties Dan Or-Hof, Adv. Or-Hof Tech & IP Law

So What Do We Do?

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Train Dan Or-Hof, Adv. Or-Hof Tech & IP Law

So What Do We Do?

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Form adequate legal structure Dan Or-Hof, Adv. Or-Hof Tech & IP Law

So… Is it really free?

Dan Or-Hof, Adv. Or-Hof Tech & IP Law

Thanks!

Dan Or-Hof, Adv.

Or-Hof Tech & IP Law [email protected]; www.or-hof.com

(M): 972-54-6649498; (IL) 972-3-5620992; (US) 415-906-5260; (F): 972-3-5476515 20 Abraham Shlonsky St. Tel-Aviv IL