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The Pitfalls of Open Source Litigation (InternetNews.com)

InternetNews.com attended a free software licensing talk by Stormy Peters at LinuxWorld; the result is a scary article hyping the threat of being sued. "Enterprises have no clear guidelines as to what constitutes violation of open source licenses because most actions are settled out of court, Peters said. That 'leaves a lot of ambiguities about open source because a lot of things haven't been settled in court, so your attorneys can't give you definitive advice,' she added."
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Article overstates risks to enterprises

Posted Aug 8, 2008 0:51 UTC (Fri) by gdt (subscriber, #6284) [Link]

Enterprises do two things with open source software: they use distributions and they write software for use in-house. The legal risk from either of those is small, as they are not the distributing party for either of those actions.

This minor legal risk does not justify the expensive measures that Peters suggests. One of the business benefits of open source software is its lack of related expenses. Expenses such as: "From the beginning you must audit your open source software... and you must track and audit usage".

There is a legal risk surrounding distribution: both in complying with the license and in the increased likelihood of detection of patent infringement. So all a typical enterprise need to do to comply with open source software licenses is to remind managers to contact the enterprise's legal affairs office if managers plan to distribute software or software-containing goods beyond the enterprise.

That software can then be inspected, and the related licenses adhered to. For open source licenses this isn't a huge cost, and is a burden which can be readily outsourced. Once this is done the risks attached to distributing open source software are no greater than the risks attached to distributing other software. In both cases a copyright or patent claim can halt distribution, with resulting business consequences.

Verizon's problem is two-fold. Firstly, the distribution of software-containing goods wasn't accompanied by the minor steps required for adherence to the GPL2 license. Secondly, when contacted about this Verizon's legal staff deliberately chose a high-risk strategy. The size of the claim should be seen in the light of this willing acceptance of legal risk, and there was a time when Verizon could have settled for a few tens of thousands of dollars, which is a trivial amount when compared to settlements from breaches of other software licenses.

Article overstates risks to enterprises

Posted Aug 8, 2008 11:32 UTC (Fri) by dps (subscriber, #5725) [Link]

While it is true that software can be examined it is almost certantly worth keeping track of
what code came from where (and what the relavent licence is). Attempting to deduce this
information after the fact can be very difficult and expensive.

What the article fails to state is that this applies with equal, if not more, force for
non-free components. Some commercial software comes with source code but requires royalities
if you distribue sofwtare containing it.

If you are writing GPLed software none of this matters. You can freely pull in bits at random
from other GPLed software as this only requires things you were going to do anyway.

FUD in the headline

Posted Aug 9, 2008 15:57 UTC (Sat) by dmarti (subscriber, #11625) [Link]

The FUD is the word "enterprises" in the headline. The companies getting sued are hardware vendors that bundle GPL software (ok, busybox) without complying with the license. This happens with all kinds of software -- MSFT sued 21 resellers for example.

The Pitfalls of Open Source Litigation (InternetNews.com)

Posted Aug 8, 2008 1:44 UTC (Fri) by clugstj (subscriber, #4020) [Link]

Wow, this isn't even good quality FUD.

Good quality FUD

Posted Aug 8, 2008 18:42 UTC (Fri) by pr1268 (subscriber, #24648) [Link]

> Wow, this isn't even good quality FUD.

You mean to tell me that there's good quality FUD and bad quality FUD? ;-)

Seriously, though, I do agree that this is silly nonsense. A lot of companies use open-source software everyday without the risk of being a defendant in a license-violation lawsuit.

The article's comment "...Enterprises having no clear guidelines as to what constitutes violation of open source licenses because most actions are settled out of court..." had me curious, though: Does the lack of a court decision in an open-source license-infringement lawsuit actually hurt the FLOSS movement? My perception is that companies are loath to tread where the courts haven't decided what's right or wrong (for the reasons implied by the article), but that seems like an odd way to (mis-)use the judicial system.

The Pitfalls of Open Source Litigation (InternetNews.com)

Posted Aug 8, 2008 2:03 UTC (Fri) by brouhaha (guest, #1698) [Link]

Most of the open source licenses are written in fairly clear English, and the meaning is
usually reasonably obvious.  Yes, there are some subtleties,  the litigation over them has
generally been situations where the defendants were very clearly not complying with the
license at all, not about a subtle point.  Sometimes the defendants come up with fairly wacky
theories about why the license is invalid or unenforceable, or try to convince the court that
the license means something other than what it says, but I don't think I've yet heard of any
such case where the court didn't actually interpret the license based on its relatively
obvious plain meaning.

If I were in charge of dealing with software licenses for a large corporation, I'd be far more
worried about compliance with the draconian provisions of license agreements for commercial
software than about open source licenses.  Yes, the corporation would need to honor its
obligations under open source licenses, but that isn't particularly difficult.

Disclaimer:  I do work for a large corporation that does use open source software in some of
its products, but I'm not in charge of dealing with software licenses.  I'm only speaking for
myself; my employer's views on this subject might be radically different than mine.

The Pitfalls of Open Source Litigation (InternetNews.com)

Posted Aug 8, 2008 6:56 UTC (Fri) by PO8 (guest, #41661) [Link]

> "I don't think I've yet heard of any such case where the court didn't actually interpret the
license based on its relatively obvious plain meaning."

Doesthe recent Jacobsen v Katzer (http://www.ncjolt.org/content/view/188/107/1/1/) count? It's
a really ugly ruling, and makes really ugly law.

I agree that in general open source licenses are written to be clear and reasonable.  The
problem here is that the courts may disagree with the licensor about what is clear and
reasonable.

The Pitfalls of Open Source Litigation (InternetNews.com)

Posted Aug 18, 2008 2:33 UTC (Mon) by k8to (subscriber, #15413) [Link]

Blissfully this has been reversed. 

The Pitfalls of Open Source Litigation (InternetNews.com)

Posted Aug 8, 2008 7:33 UTC (Fri) by ami.ganguli (guest, #9613) [Link]

This is a truly bizarre article. I don't believe actually said this stuff.

The only time an Open Source license comes into play is when distributing the software. Since the vast majority of enterprises aren't in the software business, this is a non-issue.

For the handful of businesses that might use software in the products they sell, there are, of course, compliance issues. But then there would be compliance issues with any 3rd party software they chose to use, including closed-source stuff.

The Pitfalls of Open Source Litigation (InternetNews.com)

Posted Aug 8, 2008 7:40 UTC (Fri) by ekj (guest, #1524) [Link]

That's an amazing piece of circular logic;

The fact that people do NOT often get pulled into court over Free Software is an indication
that there is a HIGH risk that using Free Software will get you pulled into court.

That makes sense. Not.

There's a reason that companies settle. The reason isn't that things are unclear. The other
way around. Companies settle because it is crystal-clear to anyone with half a clue what the
result of going to court would be.

Oh, without a doubt there are grey areas. There always are. Nevertheless the overwhelming
majority of what companies actually do is CRYSTAL-clear. For example, for all companies that
do not themselves DEVELOP or DISTRIBUTE software (that is; most companies out there), the
following is the only part of the GPL they need to know:

<b>Activities other than copying, distribution and modification are not covered by this
License; they are outside its scope. The act of running the Program is not restricted,</b>

That seem particularily unclear to anyone ? 

The Pitfalls of Open Source Litigation (InternetNews.com)

Posted Aug 8, 2008 12:07 UTC (Fri) by MKesper (guest, #38539) [Link]

There exist several parties where you can get help with Free Software licensing issues.
One of them is the Freedom Task Force (FTF) of the Free Software Foundation Europe (FSFE).
They have some documents explaining Free Software licensing basics and best practices and are working with a big network of lawyers and technical experts.
Besides, at least in Europe, there exist several cases where the most popular Free Software licence (GNU GPL) has been tested in court, providing case law for examination by legal advisors.

The Pitfalls of Open Source Litigation (InternetNews.com)

Posted Aug 8, 2008 15:19 UTC (Fri) by quinticent (guest, #32015) [Link]

I would like to point out that Stormy Patterson was severely misquoted by this reporter who
attended her seminar.  The article was pretty much a hack job.

The Pitfalls of Open Source Litigation (InternetNews.com)

Posted Aug 8, 2008 17:12 UTC (Fri) by JoeBuck (subscriber, #2330) [Link]

Peters, not Patterson. Yes, I've read her other stuff, and I couldn't believe for a second that she would sabotage her own missing by spreading such nonsense.

The reason everyone settles out of court is because it's so black-and-white: the copyright holder points out the clear and simple language that the infringer is violating; the infringer consults his/her own attorneys, who say that the violation is clear and they'd lose in court, and a settlement then quickly follows. Sometimes the settlements involve money, but usually it's just enough to pay the plaintiff's expenses. Moglen's been doing it that way for a decade or more, first as the FSF's attorney, and now with the SFLC.

The Pitfalls of Open Source Litigation (InternetNews.com)

Posted Aug 9, 2008 17:49 UTC (Sat) by quinticent (guest, #32015) [Link]

Haha, I don't know why I wrote Patterson - Peters right!!! I work with her on the GNOME
foundation and should have caught that.  In any case
http://www.linuxtoday.com/news_story.php3?ltsn=2008-08-08... was a great rebuttal to
the former article.

 

The Pitfalls of Open Source Litigation (InternetNews.com)

Posted Aug 9, 2008 22:26 UTC (Sat) by quinticent (guest, #32015) [Link]

And right from Stormy's own mouth (or keyboard):

http://www.stormyscorner.com/2008/08/afraid-youll-ge.html

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