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Volume 01} Issue 01} July 2009

Contents Editorials Foreword and statement of purpose: an introduction to IFOSS L. Rev. 3 Iain G. Mitchell QC on behalf of the IFOSSLR Editorial Committee

Articles The Fiduciary Licence Agreement: Appointing legal guardians for Free Projects 9 Ywein Van den Brande

Collaborative Approach: Peer-to-Patent and the open source movement 15 Christopher Wong, Jason Kreps

Bad facts make good : the Jacobsen case and Open Source 27 Lawrence Rosen

Introducing the Risk Grid 33 Shane Martin Coughlan, Andrew Katz reports Jacobsen v Katzer and Kamind Associates – an English legal perspective 41 Mark Henley Book reviews 'Open Source Technology and Policy' by Fadi P. Deek and James A.M. McHugh 45 Andrew Katz Tech Watch Tech Watch 49

Adriaan de Groot 69200 1 Platform Collaboration among : celebrating the formation of a community of

for the advancement of understanding of Free and Open Source licensing and ISSN: 1877-6922 business models 53 77187 7

Karen Faulds Copenhaver 9

Available online at: http://www.ifosslr.org

Volume 01} Issue 01} July 2009

Impressum Editorial Committee Tomasz Rychlicki This publication is managed by a rotating Editorial Tomasz Rychlicki graduated from the University of Gda sk, the Faculty of Law, Center of European Law. He also studied at Committee. The membership of the Committee Chicago-Kent College of Law in the LL.M. Program in for this issue is as follows: International Intellectual Law. Tomasz currently works for PATPOL, Warsaw. He is a member of the Editorial Board Amanda Brock (, Related Rights and Designs, including sui generis Amanda Brock is General Counsel of Canonical, the database right) at the Journal of Intellectual & commercial sponsor of the Ubuntu project. Having graduated Practice published by Oxford University Press, Oxford. with Honours from Glasgow University, Amanda went on to obtain a Masters in Comparative from New York University and a LLM in IT and IP law from Queen Brendan Scott Mary and Westfield, University of London. She is author of Brendan runs a legal practice based in Sydney, . E:Business; The Practical Guide to the and has written Brendan is a founding member and a director of Open Source extensively on commercial and IT law. Industry Australia Limited. He is a past president of the NSW Society for Computers and the Law and a past editor of its journal. He has over 15 years of experience in Technology and Daniel Berlin Telecommunications law and has a special interest in open Daniel Berlin works in Washington, D.C., for as a source and the law related to it. member of its technical staff and as a . Prior to his work with Google, Berlin was an advisory engineer with IBM Ywein Van den Brande Research in New York, where he worked on open source Ywein Van den Brande (b. 1977) studied law, information projects such as Subversion and GCC. Berlin earned a law science and economics at the Catholic University of Leuven and degree from the George Washington University School of Law Groep T (Leuven, Belgium), the Université de Rouen (Rouen, and a bachelor of science degree in computer science from the France) and U.C.L.A. (Los Angeles, USA). University of Rochester. Ywein is an active member of the Free Software Foundation Europe and is a member of workgroups on information architecture and usability. Ywein is the author of several legal Michel Jaccard contributions on law and technology, and regularly speaks at Partner, BCCC Avocats, Geneva / Lausanne. Expertise in IT, IP conferences. He is a guest lecturer at Groep T and blogs on the and corporate transactions. CIF blog of the journal www.tijd.be. Andrew Katz Mark Webbink Andrew Katz studied Natural Sciences and Law at Cambridge Mark Webbink is a Visiting Professor of Law and University where he graduated with honours in 1989. In 1991 he Director of the Center for Patent Innovations at New York Law was called to the , and in 1993 requalified as a . He School. Webbink is also a Senior Lecturing Fellow at Duke Law moonlighted as a programmer during his studies at Bar School, School and has served as an Adjunct Professor at NCCU Law programming in Turbo Pascal. He has released software under School. From 2000 to 2007 Webbink served in various the GPL. He is currently a partner at Moorcrofts LLP, a boutique capacities with , Inc., including General Counsel, law firm in England's Thames Valley and advises a wide range Deputy General Counsel for , Senior Vice of businesses on free and open source related issues. He has President and Secretary. Webbink presently serves on the lectured and published widely on the subject. board of directors of the Software Freedom Law Center.

Florence Tung-Mei Ko The editors wish to thank the Editorial Coordinators In 2005, Florence Tung-Mei Ko joined the Open Source for their hard work and contribution to making Software Foundry (OSSF) at Academia Sinica as a Legal the Review happen. Specialist. Since then, she has been engaged in research of Free/Open Source Software licensing. She writes the "Legal Article" column for the OSSF Newsletter, and has published many articles related to Free/Open Source Software licensing Editorial Coordinators issues in Chinese. Graeme R. West [email protected] Thomas Margoni Thomas Margoni's current role is as a post-doctoral researcher Shane Martin Coughlan at the University of Western Ontario. He previously read for a PhD at Trento Law School (Italy) and researched at UOC [email protected] (Spain) on copyright related issues, especially reutilization of contents (, exceptions and DRM). His background includes engagement with FOSS and Open Content issues. He Contact has collaborated with Italian and Spanish Creative Commons The IFOSS L. Rev. Editorial Committee can legal teams on the drafting of licenses and on aspects as the relationship with collecting societies. be contacted via email at: [email protected] Iain G. Mitchell QC Chairman, Scottish Society for Computers and Law; Chairman, Scottish Lawyers' European Group; Chairman, Faculty of Advocates IT Group; Lecturer, Honorary Board of Lecturers, Institut für Informations-, Telekommunikations- und Medienrecht, Westfälische Wilhelms -Universtät, Münster; Freeman, Worshipful Company of Information Technologists.

Carlo Piana Independent lawyer specialising in and Telecommunication Law and Free Software Advocate. Started by using GNU/ and became intrigued by the legal and philosophical implications of it. Serves as Counsel to the Free Software Foundation Europe and advises projects and companies active in Free and Open Source Software.

Available online at: http://www.ifosslr.org Policies and informations

Copyright and licensing Editorial policies IFOSS L. Rev. accepts articles for statement publication from qualified personnel based IFOSS L. Rev. is committed to the on the criteria available to view on its web improvement of understanding of legal site ( http://www.ifosslr.org ). Submissions issues in digital society. A licensing are welcome from all, and authors are statement is therefore attached to each strongly encouraged to read the style and article, clearly outlining the particular terms content guidelines available on the web site. which apply to the article. Most use Creative The review operates an anonymous peer Commons licences with special exceptions review system for articles as appropriate, for translations. and expects all authors to meet the highest standards of scholarship and integrity. Graphic design The Editorial Committee wishes to thank Bibliographic information Tomasz Polita ski Design for its logo and The authors explicitly encourage libraries, associated graphic design work. archives and educational institutions to hold copies of IFOSS L. Rev. in their collections, http://tomaszpolitanski.com in electronic and/or printed form. All users are advised that articles may occasionally be updated after publication, and as such, Publisher & sponsorship regular metadata harvesting is encouraged. IFOSS L. Rev. is published by its Editorial Linking back to original copies on the Committee, with financial and administrative IFOSSLR web site, where authoritative assistance from NLnet Foundation (Science versions are archived, is strongly Park 140, 1098 XG Amsterdam,The recommended. Please contact the Editorial Netherlands) and Mozilla Foundation (650 Committee for further information on best Castro Street, Suite 300, Mountain View, practices. CA, 94041-2021, USA) ISSN: 1877-6922

Second edition The Second edition of IFLOSSLR is planned for December 2009. Suggestions for contributions will be welcomed by the Editorial committee and should be sent to: [email protected] Please note that neither NLnet Foundation nor Mozilla Foundation accept correspondence on behalf of this publication. All correspondence should be directed to the Editorial Committee via email (see above).

Available online at: http://www.ifosslr.org Foreword and statement of purpose: an introduction to IFOSS L. Rev. 3

Foreword and statement of purpose: an introduction to IFOSS L. Rev.

by The Editorial Committee, coordinated by Iain G. Mitchell Q.C.a (a) Iain G. Mitchell QC is Chairman of the Scottish Society for Computers and Law; Chairman of the Faculty of Advocates Information Technology Group; Chairman of the Scottish Lawyers' European Group; a visiting lecturer at the Institut für Informations- Telekommunikations- und Medienrecht at the Westfälische Wilhelms-Universität Münster, Germany; former Joint Editor of the E-Law Review; and a Freeman of the Worshipful Company of Information Technologists.

Abstract This editorial article by the Editorial Committee of the International Free and Open Source Review introduces the rationale behind the publication's establishment, its objectives and operating methods. The editorial also presents an overview of the articles which comprise the first issue.

Keywords Law; information technology; Free and Open Source Software; International Free and Open Source Software Law Review

Purpose

The world is changing. Old structures, old business models and old ways of thinking are breaking down. Such a world is, at once, full of challenges or, depending on your point of view, opportunities.

In his book, The Media Lab: Inventing the Future at MIT, Stewart Brand wrote:

"Information wants to be free. Information also wants to be expensive. Information wants to be free because it has become so cheap to distribute, copy, and recombine ­ too cheap to meter. It wants to be expensive because it can be immeasurably valuable to the recipient. That tension will not go away. It leads to endless wrenching debate about price, copyright, 'intellectual property', the moral rightness of casual distribution, because each round of new devices makes the tension worse, not better."

Yet tension may be creative: it may lead to constructive change. Once it seemed that the future belonged to the large monopoly corporations which had as their business model, software as a commodity ­ a commodity to be expensively packaged, shrink­wrapped, shipped, and retailed. The source code was the crown jewels, to be guarded, and legally fenced to preserve its value.

International Free and Open Source Software Law Review Vol. 1, Issue 1 4 Foreword and statement of purpose: an introduction to IFOSS L. Rev.

But in a world of ever­increasing connectedness and convergence, where software can be downloaded or services supplied across the at a unit cost which is as near to free as you can get, commoditising software in the most expensive way possible ­ by turning a virtual good into a physical good, no longer makes as much sense as it used to. Even the value of software as a commodity (however it is distributed) makes less and less sense when one realises that most of the end­users do not want software for what it is, but for what it does.

In such a market place, the large corporations' dominant positions, so important in bolstering their control of the software market, count for less if the customers, in place of having sitting on their desktops software they don't want, acquire the services they do want over the Internet. This new paradigm of service delivery makes it irrelevant what the software is, and helps opens up competition to a wider diversity of software models.

In the old days of the big corporations' unchallenged market dominance, there arose a movement which was as much aspirational and philosophical as it was grounded in market considerations ­ the Free and Open Source Software movement. Like most movements, it was not homogeneous: a few of its adherents prophesied the death of copyright and fancied themselves close to the epicentre of a cause which would shake the earth and bring down the heavens, but many more of its supporters saw clearly that the idea was profoundly market­oriented, pitting against the large anti­competitive monopolies a healthier and more vigorous market where software developers and users shared the source code and worked together in freedom to run, modify, distribute and redistribute programs. The old monopolistic corporations used copyright law to close the source code down and to restrict its use, but the new model was to use copyright to do the opposite, to open the source code up and freely to share it, and so, coined the epithet 'copyleft' to describe this new use of copyright law.

Free and open source software is software which is covered by a licence very different from a traditional commercial software licence, in that it grants the users ­ under certain conditions ­ the right to use, study, modify and distribute the software. For these purposes, the user is granted access to the source code and the right (and sometimes even the obligation) to distribute the source code further afield.

New ideas need time to gain general acceptance and, to begin with, few of those in the wider business community were aware of the profound changes which were taking place, and many of those who were aware of the changes misunderstood them. By and large, business people sought legal certainty and what they perceived as reliability, so clung on to nurse for fear of something worse. They regarded words like 'copyleft' with suspicion; and they looked at the preamble to GPL 2 and saw a document which looked to them more aspirational than legal in nature: a for the State of Hackerdom rather than a serious business tool.

However, some more far­sighted businesses saw Free and Open Source software much more accurately as a valuable business tool, upon the back of which entire business models might realistically be built. They were the pioneers, but it would not be long before the rest of the world began to catch up. Governments and institutions around the world began to see considerable gains in respect of strategic independence, lowered costs and increased reliability through the use of Free and Open Source software. In the commercial world, the old proprietary software business models daily seemed less and less relevant to the modern market place, and Free and Open Source software broke through as a serious player. There was a definite sense that the tide had turned.

International Free and Open Source Software Law Review Vol. 1, Issue 1 Foreword and statement of purpose: an introduction to IFOSS L. Rev. 5

And yet now, years later, there is still baggage. Free and Open Source software, though now a robust business proposition, evokes for many, memories of the days when it was seen as crusade. Its proponents as well as its opponents still occasionally address the subject as though they were engaging in a philosophical debate. There are also differences of emphasis, and a whiff of sectarianism amongst the proponents of the various standard licences.

It is for others to address these theological disputes. It is, rather, the purpose of this Review to take one step back and look behind the rhetoric in a rigorous and objective fashion, to probe, to analyse, to question received wisdom, and to bring proper academic discipline to the study of Free and Open Source software in its legal and wider context.

Free and Open Source Software has become a serious player. It deserves serious analysis.

Objectives

(a) Scope It is with this end in view that the Editorial Committee presents this first issue of the International Free and Open Source Software Law Review (IFOSS L. Rev. or IFOSSLR), in the hope and expectation that it will provide a centre of excellence for the very best in analysis of issues facing users and advisors in the development, deployment and governance of Free and Open Source software, recognising the importance of digital rights issues to the daily professional and personal lives of many of the Review's readers and the role that open solutions might play in their resolution. The Review aims to present the perspectives of those most experienced and knowledgeable in the field and to ask how there might be attained sustainable solutions which foster the growth and development of the marketplace.

However, it is by no means the intention of the editors that the Review should exist solely for those who have an attachment, whether ideological or merely pragmatic, to Free and Open Source software. It is recognised that much of the readership will be drawn from the wider world and will include the sympathetic, the merely curious, and the actively hostile. So, the Review does not exist to preach to the converted: the readership will be much wider than that; nor, in what is intended as a publication of integrity and intellectual rigour, is there any place for preaching. This is worth stressing in light of the history of the Free Software and the Open Source Software movements.

Both of those movements largely endorse similar software licences and pursue similar goals, but the two terms have historically tended to carried different emphases. Those who use the term "Free Software" stress the rights (or freedoms) which that software provides to its users, whereas users of the term "Open Source Software" focus on the perceived benefits of peer­to­peer software development. Put differently, Free Software emphasises the long term goal, Open Source Software emphasises the means to promote the long term goal of Software Freedom.

The Review does not endorse any one licensing model, focus or emphasis, but rather seeks, in an academically rigorous and objective manner, to increase the knowledge and understanding about the legal mechanisms used by all forms of Free and Open Source Software licences. It uses the term Free and Open Source Software to cover both Free Software and Open Source Software.

International Free and Open Source Software Law Review Vol. 1, Issue 1 6 Foreword and statement of purpose: an introduction to IFOSS L. Rev. b) Consolidation of knowledge IFOSS L. Rev. aims to provide a focal point for discussion of, and research into, the legal aspects of Free and Open Source software, and in doing so to enhance the level of understanding among legal professionals and researchers of key issues facing the industry. Existing discussion fora serve their purposes well, and it is not the objective of this publication to replace them. Rather, it is intended that IFOSS L. Rev. should become the place where promising new approaches and insightful analysis can gain a voice – a voice which will reach all those most involved and interested in the questions at hand. c) Professionalism of research and discussion In everything that the publication does, it will strive to achieve or surpass the highest standards of academic enquiry. It will be the first publication specialising in Free and Open Source software legal issues to insist upon such standards, and in doing so the publication will raise the level of analysis of such issues and provide a stimulus for new research and analysis. d) Marketplace and community relevance A final central objective of IFOSS L. Rev. is to maintain a close degree of connectedness to the fundamental processes driving the marketplace and community. This means that it must ensure that those with expertise in realms such as software engineering, community project management and business are brought 'into the body of the kirk'.

IFOSS L. Rev. will maintain ties to these crucial stakeholders through the diverse and changing composition of its Editorial Committee and the legal network it represents. It will also devote space in each issue to examination of pertinent issues by invited non­lawyers, allowing the publication's core legal audience to increase their awareness of upcoming issues and ground their legal knowledge in practical examples.

It will also recognise that professionals, both lawyers and non­lawyers who are experienced in the field will have had an opportunity to develop informed opinions about matters of concern or contention; and for this reason, the Review will also publish an occasional series of articles under the title Platform, which series will give scope for the expression of those opinions, but only where such opinions are informed, perceptive and likely to advance debate and discussion in the wider community.

Scope of coverage and methods

The core topics covered by IFOSS L. Rev. include copyright, licence implementation, licence interpretation, software patents, open standards, case law and . However, the review, as its name implies, is international in scope and there are no limitations as to the covered.

The Editorial Committee accepts proposals and submissions on any of these, or related, topics, though it does insist on maintaining the Review's core focus on the legal aspects of Free and Open Source Software. The subject matter of submissions must reflect this.

Each issue of IFOSS L. Rev. will include a combination of full­length research articles, case law reports, legislative review articles, book reviews and editorials covering these themes. Peer­review

International Free and Open Source Software Law Review Vol. 1, Issue 1 Foreword and statement of purpose: an introduction to IFOSS L. Rev. 7 is applied to the appropriate sections: for full details of the submission process, please see our website at http://www.ifosslr.org .

Operating principles and governance

The Editorial Committee of the Review is made up of members who also belong to the European Legal Network, a non­partisan professional network of Free Software legal experts. This network is facilitated by Free Software Foundation Europe (FSFE), though membership extends across a broad spectrum of interests engaging in Free and Open Source Software across four continents. FSFE exerts no editorial control over the Editorial Committee,. The composition of the Editorial Committee rotates regularly among European Legal Network members. This normally happens after the publication of each issue, and is governed by consensus decisions taken by the European Legal Network as a whole. The Review receives financial support from the NLNet Foundation.

Overview of Volume 1, Issue 1:

This first issue of the Review contains a variety of articles which key into what is said above about the scope and ambition of the Review.

The most newsworthy case­law development in recent months in the world of FOSS licensing was the decision of the Federal Appeal in Jacobsen v. Katzer 535 F.3d 1373, a decision which is interesting to Free and Open Source lawyers for the Court's analysis of the fundamental nature of FOSS licensing conditions and to the wider public for its story of duplicity and dirty dealing in the world of model railway enthusiasts. In his article, Bad Facts Make Good Law, Lawrence Rosen magisterially unpacks the decision from the perspective of a U.S. lawyer, whilst Mark Henley looks at the decision from the other side of the pond in his stimulating article, Jacobsen v Katzer and Kamind Associates – an English legal perspective.

In a major contribution to working with Free and Open Source Software, Shane Martin Coughlan and Andrew Katz, in their article Introducing the Risk Grid, report on the work of a Special Interest Group of the European Legal Network. This Group considered possible methods to reduce or contain risk in transactions related to the supply chain in relation to commercial procurement of Free and Open Source Software. That work culminated in the creation of a Risk Grid, an invaluable tool for which both Customers and Suppliers will have cause to be grateful, regardless of their relative experience in Free andOpen Source Software and methods.

Also of great practical utility is Ywein Van den Brande's The Fiduciary Licence Agreement: Appointing legal guardians for Free Software Projects, which discusses the new version of the Fiduciary Licence Agreement released by the Free Software Foundation Europe. This Agreement allows Developers of Free Software Projects to assign their copyright to a single person, with the intention of (amongst other things) preserving the ability to relicense and allowing the assignee to demonstrate to the court sufficient title and interest to enforce Free and Open Source Licences.

The difficult and persistent problem of living with software patents is addressed by Christopher Wong and Jason Kreps in their article Collaborative Approach: Peer­to­Patent and the Open Source Movement, which gives useful guidance on how the Open Source movement, through using a process of peer review of pending patent applications, can cope with the threat of the

International Free and Open Source Software Law Review Vol. 1, Issue 1 8 Foreword and statement of purpose: an introduction to IFOSS L. Rev. proliferation of non­meritorious or overly broad patents.

In a Tech Watch article, KDE Vice President of Legal Affairs Adriaan de Groot reviews some of the issues presently confronting community software authors: copyright consolidation, making a living from coding, and, as he puts it, 'doing legal stuff right'.

Finally, Andrew Katz, in a sceptical and entertaining book review touches on some of the themes already canvassed in this editorial, underling that theological debate on the virtues of different "movements" is more often productive of heat than light; whilst, in an equally provocative Platform article, Collaboration among Counsel, Karen Copenhaver challenges us with the question "why don't the lawyers get it?".

Consideration of this overview of the first issue should prove that one can be serious­minded and intellectually rigorous in addressing vital questions, yet at the same time be entertaining, stimulating and provocative.

And so, gentle readers, if you find yourself educated, informed, entertained, stimulated or provoked by this first issue of the International Free and Open Source Law Review, then perhaps you might find yourself moved (or even irritated) enough to write a contribution for the second issue.

In that spirit, your Editorial Committee offers this first ever issue of the Review to the world: it no longer belongs to us, but to you, all of our readers.

Iain G. Mitchell Q.C. and the other members of the IFOSS L. Rev. Editorial Committee

Licence and Attribution This paper was published in the International Free and Open Source Software Law Review, Volume 1, Issue 1 (July 2009). It originally appeared online at http://www.ifosslr.org. This article should be cited as follows: Mitchell, Iain G. (2009) 'Foreword and statement of purpose: an introduction to IFOSS L. Rev.', International Free and Open Source Software Law Review, 1(1), pp 3 ­ 8 Copyright © 2009 Iain G. Mitchell & IFOSS L. Rev Editorial Committee. This article is licensed under a Creative Commons UK (England and Wales) 2.0 licence, no derivative works, attribution, CC­BY­ND. As a special exception, the author expressly permits faithful translations of the entire document into any language, provided that the resulting translation (which may include an attribution to the translator) is shared alike. This paragraph is part of the paper, and must be included when copying or translating the paper.

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G4),(4&)*$4&%-H(,,-&45-6.,4-7$8(/,-7$=)<&(,-I&<-J,+*,< K$%@-L;-G::8,-L Bad Facts Make Good Law: The Jacobsen Case and Open Source 27

Bad Facts Make Good Law: The Jacobsen Case and Open Source

Lawrence Rosen1

Abstract For the first time, a major U.S. appeals court has held that an open source license is enforceable through preliminary injunctions. The court also found that exacting conditions in the form of compliance with open source requirements for disclosure and explanation of changes is entitled to recognition as consideration for a contractual license.

Keywords Open source licenses, contracts, enforcement, infringement, consideration.

For many years the open source community has been eagerly awaiting a U.S. that would bless the open source licensing model. In what in retrospect may seem like a leap of faith, millions of software programmers around the world published their works expecting that their open source licenses, including the GPL, would be honored and enforced in court. That fundamental assumption was never effectively tested in court, until the Jacobsen v. Katzer case [Page references in this article are to 535 F.3d 1373; 208 U.S.App. LEXIS 17161, Aug. 13, 2008.]

This decision finally explains how U.S. should analyze open source and open content licenses. The bottom line for us is that copyright law provides the remedies but law provides the analytical tools.

This is a strange case, based upon facts that did not seem favorable to Jacobsen ("J" in this article when I first heard of him several years ago. For one, the license actually used by J was the first version of the Artistic License, a document of which one could generously say that the non­lawyers who drafted it years ago took artistic license with legal style and method. It is not a very good license. Anyone looking for the formalities and magic words of modern proprietary or open source software licenses would be disappointed with the old Artistic License. It is not the license of choice on which we would want to hang the entire open source copyright licensing model in federal court.

The Jacobsen case found its way to the Court of Appeals for the Federal Circuit (CAFC), arguably the most important court short of the U.S. Supreme Court for intellectual property matters. That itself is a story that may interest lawyers who enjoy civil litigation, and may serve as an object lesson for plaintiffs and defendants alike. This case ended up in the CAFC because of statutory and factual reasons completely unrelated to the license itself. The court in which one litigates can present opportunities— and risks—that the parties to that lawsuit may not intend. Lawyers who enjoy civil litigation practice

1 © Lawrence Rosen 2008. This paper was prepared for presentation at the PLI Open Source Software 2008 program in New York (11/18/2008) and San Francisco (12/10/2008, also webcast). It is also published at the author's website, www.rosenlaw.com.

International Free and Open Source Software Law Review Vol. 1, Issue 1 28 Bad Facts Make Good Law: The Jacobsen Case and Open Source may appreciate the story that unfolds in this partly historical paper.

The most interesting part of the story took place during the recent few months in which, under the leadership of attorneys at Creative Commons, various open source organizations cooperated to write an amicus brief that focused the CAFC on the critical issues that we wanted the court to answer firmly for us.

We got just that. The Jacobsen decision finally settled that open source licensors can enforce their licenses effectively in U.S. courts. Defendants can't avoid copyright law by relying on contract law principles that are inapplicable in the open source and open content world.

As is true for many decisions that reach the highest appellate courts, this case has important implications far beyond open source. Creative Commons lawyers were involved in this case because Jacobsen would also settle the enforceability of their licenses, under which hundreds of millions of musical, literary, and artistic works are made available to the world on generous copyright terms. The authors of those works now have a valuable remedy—the preliminary injunction—to enforce their in U.S. Courts.

Jacobsen's Complicated Civil Litigation Path

The plaintiff in this case, J, is a physicist who, as a hobby, developed software for controlling model trains. He licensed it to the world under the first version of the Artistic License. This license authorizes anyone to copy, modify and distribute the software on condition that they place certain notices in those works as attribution to its original author. Licensees are also required to identify that they have changed the work, to preserve the original author's reputation.

A small open source community developed around that model train software. Among those who took that software was the defendant, Katzer ("K" in this paper). According to the complaint, K modified the model train software, placed his own name on it, and distributed it to his customers. K didn't place the required attribution notices in his copies.

As this case progressed, K never actually denied that those copies were made and distributed, but asdescribed below, this case never reached the factual resolution stage. To the date this article is written, K has never formally answered the complaint, so we must assume that the facts as portrayed in J's complaint are true.

Before a lawsuit was filed, during the early stages of this open source dispute about attribution requirements of the Artistic License, K took the unusual step of retaliating by sending a letter to J accusing him of infringing a patent. The legal basis for that accusation was dubious at best; companies around the world throw such letters into the virtual trash can every day. But J (and his wife) didn't know how to react; their life savings were at risk.

J subsequently reacted by filing a lawsuit for declaratory relief that he had not infringed K's patent. Filing a declaratory relief action is sometimes an appropriate reaction to a false accusation of patent infringement.

A involving patent claims can sometimes be dangerous. In the U.S., patent infringement claims are always litigated in District Court, and all appeals are automatically routed to the CAFC. The Court of Appeals for the Federal Circuit is a careful and sophisticated appeals court that often deals with complex technical issues. Patent require a high level of diligence before they are filed so they don't waste the court's time.

International Free and Open Source Software Law Review Vol. 1, Issue 1 Bad Facts Make Good Law: The Jacobsen Case and Open Source 29

Both a potential defendant in a claim for declaratory relief for patent infringement (before he writes the accusatory letter) and the plaintiff seeking that relief (before he files the declaratory relief lawsuit because of that accusatory letter) ought first to analyze the patent claims carefully. It soon turned out that K's patent infringement allegations were bogus. The plaintiff, J, and his wife need not have been so afraid. But by then the litigation path was fixed: Even without those mooted patent claims being relevant any longer and until a final resolution of the case, federal law requires that appeals be heard by the CAFC (or ultimately the U.S. Supreme Court). This automatically became an "important case."

A second characteristic of this litigation was the large catalog of additional claims asserted in J's complaint for declaratory relief. Some of those additional causes of action, of course, were the fundamental copyright claims that later became the focus of the CAFC decision. But the litigation was also burdened by other tort causes of action relating to trademark, unfair business practices, and breach of contract. Some claims involved state law, some federal law. Many of these non­patent claims involved complicated choices of law, with different issues of available remedies and different penalties, including attorney's fees. This case was for months mired in preliminary motions, all involving the non­patent claims. attempts failed.

In such situations, it is not unexpected that the District Court would try to resolve this case as if it were a contractual dispute: If the Artistic License demands that licensees place attribution notices in their copies but they don't, determine the dollar value of those notices and assess damages. The District Court's decision to treat this as a simple contractual complaint would, in many situations, make it more likely that the parties would settle the dispute themselves for money. Such negotiated resolutions are the predilections of most courts because they encourage or arbitration rather than expensive motion practice and . But these parties didn't settle, for various reasons unrelated to the software itself or its license.

All those matters were destined to be resolved in federal court because the declaratory relief patent claim carried those other claims along by supplemental . Federal court, and in particular the CAFC, is not usually the correct venue for such disputes, and so the CAFC used the law of the parties' local jurisdiction, California and the Ninth Circuit, in deciding this case.2

Open Source Frames the Important Issue

This case deals with hobby software, given away by J under an open source license, subsequently used by K for minor commercial purposes, albeit without honoring an attribution provision in the license. The dollar value of a settlement on contract law terms would be small. At the scale of the vast software world the value of notices in J's and K's model train software is de minimis; such a claim cannot justify the cost of federal litigation.

More practically, for contractual disputes in the U.S., there is no automatic provision in federal court for attorney's fees. Clients take on such cases sometimes at great personal financial risk that they will end up with nothing but some small penalty assessed against a bad faith licensee, and a large bill for attorney's fees. (Of course, a contract can expressly provide for attorney's fees to the victor, but the Artistic License contains no such provision.)

Copyright law, on the other hand, permits a preliminary injunction as a remedy for infringement, and the law provides for attorney's fees in certain circumstances. Among the many remedies sought in J's complaint, injunctive relief for was perhaps the most important. Such an order from the court could stop K's business cold, no matter how large or small. And then K might also be

2 Jacobsen v. Katzer, 535 F.3d 1373, 1377-1378 (Aug. 13, 2008).

International Free and Open Source Software Law Review Vol. 1, Issue 1 30 Bad Facts Make Good Law: The Jacobsen Case and Open Source liable to pay attorney's fees.

It was understandable that K fought against that preliminary injunction in court. It was understandable that J demanded it.

A preliminary injunction usually requires at least some of likely harm if the court doesn't take action and, in this particular case, there was no such ready factual evidence before the court. No matter, the District Court said, that a copyright infringement claim is appropriately and often resolved by a preliminary injunction, because that is irrelevant for contract claims. The District Court took a specific path toward resolving this dispute by treating the Artistic License as a contract, and thereupon applied contract law to refuse a preliminary injunction.

This became the fundamental issue of the case on appeal: Was it proper for the District Court to view this as a contract dispute rather than a copyright infringement dispute when considering the remedy of preliminary injunction?

That's also what caught the attention of theopen source and open content organizations when J appealed the District Court's refusal to order a preliminary injunction. That became the single issue upon which these groups had a shared interest: Unless a breach of a copyright license can be stopped outright by a preliminary injunction, there is often no value in a contract lawsuit, especially for works published for free public use and with small commercial value.

Only under copyright law—which generally permits preliminary injunctions as way of dealing with copyright infringement, and where attorney's fees can be assessed against bad faith defendants—is there some hope of enforcing the conditions that many authors demand for their works.

The CAFC Analyzes the Important Issue

The CAFC boiled the Jacobsen case down to its fundamental issue: "The heart of the argument on appeal concerns whether the terms of the Artistic License are conditions of, or merely covenants to, the copyright license.3

Whether a provision is a condition or a covenant affects the way courts have previously dealt with copyright licenses. A "mere covenant" (particularly an "independent covenant"), when breached, is to be remedied under contract law. A "condition," on the other hand, is a limitation on the scope of the copyright license itself, and courts should treat its breach as copyright infringement.4

Then specifically analyzing the Artistic License, the CAFC said that J's requirement to publish attribution notices was a "condition" of the license. K's failure to do so was a use outside the scope of the license and therefore infringing.5 The remedy for such infringement is found in copyright law. For copyright infringement, the court said, "where a copyright holder has shown likelihood of success on the merits of a copyright infringement claim," the Ninth Circuit has held that irreparable harm is presumed.6

The Jacobsen case was remanded "for further proceedings consistent with this opinion."7

3 Id. at 1380. 4 Id., and cases cited therein including Sun v. , 188 F.3d 1115 (90th Cir. 1999). 5 Id. at 1381. 6 Id. at 1378. 7 Id. at 1383.

International Free and Open Source Software Law Review Vol. 1, Issue 1 Bad Facts Make Good Law: The Jacobsen Case and Open Source 31

The people who wrote the Artistic License, and those who wrote the GPL, and those who wrote many other open source licenses, lucked out on the Jacobsen case. Many of us license authors didn't know the legal difference between a "covenant" and a "condition" when our licenses were written (and many attorneys still don't). Fortunately, the Artistic License states on its face that the document creates conditions, and so the CAFC found conditions in the Artistic License when we needed them most. If the court had found covenants in that license, open source might have lost this case.

This presumably does not mean that the new magic word for open source and open content licenses is "condition." The CAFC relied on a long­ago California Supreme Court decision to the effect that a condition can be found by "attributing the usual and ordinary signification to the language of the parties."8 Thus the CAFC determined that the Artistic License, when it also uses the phrase "provided that," "denotes a condition" under California contract law.9

This does, however, raise an interesting question: Of the current approved open source and Creative Commons licenses, which of them clearly distinguish their conditions from their covenants, and under which state's contract law do we analyze that question?

Other Important Lessons from the Jacobsen Case

The CAFC also resolved for us certain other concerns that arise when licensors try to enforce their open source copyright licenses. These strengthen our ability to set conditions for the use of our copyrighted works and to enforce those terms against those who don't meet those conditions.

At oral argument in the CAFC, the court asked the attorneys for both parties whether it is important that this software, like much other open source software, is licensed more for its reputational and cooperative value in the "community" rather than for financial reward. This was an important enough issue that it warranted a supplemental brief by the Creative Commons attorneys. The CAFC decision reflected the arguments in that brief.

The Artistic License was "clear" that it intended to "accomplish the objectives of the open source licensing collaboration, including economic benefit."10 But it is not only an economic benefit that is at stake in the Jacobsen case.

"The choice to exact consideration in the form of compliance with the open source requirements of disclosure and explanation of changes, rather than as a dollar­denominated fee, is entitled to no less legal recognition."11

The court's decision is very helpful for reassuring millions of copyright holders who engage in open source and Creative Commons licensing that they "have the right to control the modification and distribution of [their] copyrighted material."1112

The CAFC decision also requires district courts to enforce open source license restrictions (another term like "condition" that has ambiguous meaning here) through the remedy of injunctive relief. Otherwise, "those types of license restrictions might well be rendered meaningless."13

8 Id. at 1381, citing Diepenbrock v. Luiz, 159 Cal. 716 (1911) 9 Id 10 Id 11 Id. at 1382. 12 Id. at 1381. 13 Id. at 1382.

International Free and Open Source Software Law Review Vol. 1, Issue 1 32 Bad Facts Make Good Law: The Jacobsen Case and Open Source

Even though injunctive relief is available, the plaintiff (J) is still required to prove that the conditions of the Artistic License were actually violated. The Jacobsen case was remanded for further action in District Court, not finally determined by the CAFC.14

As of the date this article is written, litigation continues. But we can take great comfort from this case already.15

About the author

Lawrence Rosen is both an attorney and a computer specialist. He is founding partner of Rosenlaw & Einschlag, a technology law firm with offices in Los Altos Hills and Ukiah, California, that specializes in in­ tellectual property protection, licensing and business transactions for technology companies. In addition to this law practice, Larry also served for many years as general counsel and secretary of the non­profit Open Source Initiative (OSI). He currently advises many open source companies and non­profit open source projects including Apache Software Foundation and the Python Software Foundation. In 2005­ 2006 he was a Lecturer in Law at . Larry currently serves on the board of directors of International Characters, and on the advisory boards of SpikeSource, Black Duck Software, and JasperSoft.

Licence and Attribution This paper was published in the International Free and Open Source Software Law Review, Volume 1, Issue 1 (July 2009). It originally appeared online at http://www.ifosslr.org. This article should be cited as follows: Rosen, Lawrence (2009) 'Bad Facts Make Good Law: The Jacobsen Case and Open Source', International Free and Open Source Software Law Review, 1(1), pp 27 – 32 Copyright © 2009 Lawrence Rosen This article is licensed under a Creative Commons UK (England and Wales) 2.0 licence, no derivative works, attribution, CC­BY­ND. As a special exception, the author expressly permits faithful translations of the entire document into any language, provided that the resulting translation (which may include an attribution to the translator) is shared alike. This paragraph is part of the paper, and must be included when copying or translating the paper.

14 Id. at 1383. 15 I want to acknowledge the diligent efforts of Jacobsen's attorney, Victoria Hall (Law Offices of Victoria Hall), who persevered in this case despite my skepticism and won important additional allies to her client's cause. The legal heroes were two attorneys from Creative Commons, Anthony Falzone and Christopher Ridder, who under the leadership of Prof. (Stanford Law School) submitted the amicus brief to the CAFC. Also providing legal support during litigation and appeal were Mark Radcliffe, David Gross and Steve Chiari (DLA Piper and counsel to Open Source Initiative (OSI)); Karen Copenhaver (Choate Hall and counsel to the ); (PERL Foundation, author of the newer and better version of the Artistic License); Roberta Cairney (Law Offices of Roberta Cairney and counsel to the PERL Foundation); and Scott Peterson (HP and a member of the OSI Legal Advisory Counsel). I was honored to work with them on this case. I apologize that this list is incomplete.

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A/B('/8B*$/85&C'((&8/9&-.(/&0$1'2(&0$DB+8'(&E8+&F()*(+ G$5H&IJ&AKK1(&I Tech Watch 49

Tech Watch

Adriaan de Groota (a) Vice President of Legal Affairs, KDE e.V.

IFOSS L. Rev's Tech Watch section aims to allow technical experts and organisational leaders in Free and Open Source Software to introduce and explain topical issues with important legal aspects. These discussions may form the basis of subsequent detailed examination by IFOSS L. Rev. contributors.

This issue, KDE e.V. Vice President of Legal Affairs Adriaan de Groot reviews some of the issues presently confronting community software authors: copyright consolidation, making a living from coding, and 'doing legal stuff right'.

Keywords Law; information technology; Free and Open Source Software; Bacula.org; Fiduciary Licence Agreement; Copyright; Copyright consolidation

Insofar as there is a "typical free software person," one might think of a software developer, the kind that sits up late writing code licensed as free software. Of course, here I mean free as in freedom to copy, modify, and distribute, although the real driving force for a developer may be the itch to create something useful or beautiful. At times like that, a developer's thoughts about legal issues are far, far away.

However, the real world intrudes in the end. Software needs to be used to be useful, and most developers want to distribute their software to as many users as possible. Distribution (or even assisting distribution, as in the Pirate Bay1 case) means interacting with the rest of the world. One's private creative work is to be published with all the attendant details. Unlike many creative professionals, free software developers, especially the hobbyists, do not have agents to help with the legal issues and mechanics of distribution.

This journal is about the legal issues that attend free software development, publication and distribution in the broadest sense. It is a legal journal, largely from lawyers' perspectives. This column looks at what has been (or what should have been) keeping free software developers busy on the oft-neglected legal side of their work.

1 http://www.piratebay.org

International Free and Open Source Software Law Review Vol. 1, Issue 1 50 Tech Watch

The biggest news on the copyright, patent and trademark front in the month of April 2009 is perhaps the initial in the case of the Pirate Bay.2 While it is of considerable importance to a large population of file-sharing enthusiasts, the impact on software developers and free software projects seems to be limited. One might argue about contributory infringement and how the development of software applications for file transfer can interact with the law. For the most part, though, free software developers are interested in working within the law, since it is that law -- and copyright in particular -- that makes free software licenses possible and necessary.

A developer does not exist in a vacuum, though. Assuming the software is interesting and useful to others as well, a community grows around that software. The community is more than only the developer -- there are users, writers, artists, system administrators and possibly even community managers (an odd job title, but one that flourishes in the free software world). "How do you eat?" is a common question, and securing the livelihood of all the members of a free software community is something that may require sound legal footing.

Two debates wandered around the free software world this month on topics directly related to legal matters. Both crossed the path of Tarus Balog, the lead developer of OpenNMS, a network monitoring suite released under the GNU GPL. OpenNMS is free software developed by a fairly large community, centrally managed and maintained, and supports a business. It is therefore a crossroads of forces around free software. The discussions spilled out across many different projects, especially after a discussion at the Open Source Business Conference3 on community and licensing.

One debate is on the principles of licensing: what constitutes open source software? Where do paid-for services or code fit in to the free software world? Who controls the code? Where do the rights to the code reside? (These topics are culled from all of the blog entries that spawned around the original discussion; you might want to start at Aaron Seigo's blog post on copyright conslidation4 or at Matthew Aslett's contribution5, neither of which are by Tarus but which begin by examining the fringes of the argument).

The nature of discussion on the Internet between different communities is one of reaction-to-blog- entries, it seems. While communications within a single community are handled by mailing lists and forums, communication across community boundaries is mostly via public journals. As such it can be difficult to follow the discussions, and many red herrings can show up. At the tail end of the discussion (the first of the two blogs mentioned above), Aaron Seigo points out why fiduciary license agreements (FLA) can be good and useful, both to the community, organisations, individuals and corporations. The value of an FLA for a software project -- for the community, the organisation, individuals and corporations -- comes from the clarity it provides for long-term stability of the project. An FLA can be used to express the relationship between community contributors and the organisation or business that manages and maintains the project. That same FLA brings risks, though, since consolidating copyright in one place also provides a single point of failure.

2 Four found guilty in landmark Pirate Bay case, http://edition.cnn.com/2009/TECH/04/17/sweden.piracy.jail/index.html 3 Open Source Business Conference Retrospective, http://www.opensource.org/node/416 4 http://aseigo.blogspot.com/2009/04/on-copyright-assignment.html 5 http://blogs.the451group.com/opensource/2009/02/02/define-open-source-vendor/

International Free and Open Source Software Law Review Vol. 1, Issue 1 Tech Watch 51

The Free Software Foundation Europe and its Freedom Task Force have produced a model FLA6 for use by Free Software projects. An early adopter was the Bacula project.7 The KDE project, which produces the K Desktop Environment software (11 years, 6 million lines of code, 600 developers) has recently adopted its own version of that FLA.8 Aaron's blog post reminds us why the KDE project recommends an FLA, but does not require one. Current efforts related to improving and extending the FLA include translation (on the FSFE's part) and standardised wording (for developers to fill in on their forms).

For hobbyist developers, there is little interest in "doing it right" from a legal perspective. However, for long-term viability of free software projects, getting it right is something that needs to happen -- at least once. There is a great need for education, outreach and materials to enable free software projects to do the right thing by the law. Given the right tools, projects can engage with legal advisors to secure their own long-term viability.

About the author

Adriaan de Groot is a researcher in software quality and verification; his free software efforts are confined to the KDE project, where he has the title Vice-President of Legal Affairs. His byline for developers is "I talk to lawyers so you don't have to." In this column, he writes for lawyers about what is going on in the trenches of free software development.

6 http://www.fsfe.org/projects/ftf/FLA.en.pdf 7 http://www.bacula.org/fr/dev-manual/Fiduciary_License_Agreement.html 8 http://ev.kde.org/resources/FLA-generic.pdf

International Free and Open Source Software Law Review Vol. 1, Issue 1 52 Tech Watch

Licence and Attribution This paper was published in the International Free and Open Source Software Law Review, Volume 1, Issue 1 (July 2009). It originally appeared online at http://www.ifosslr.org. This article should be cited as follows: de Groot, Adriaan (2009) 'Tech Watch', International Free and Open Source Software Law Review, 1(1), pp 49 ­ 51 Copyright © 2009 Adriaan de Groot. This article is licensed under a Creative Commons UK (England and Wales) 2.0 licence, no derivative works, attribution, CC­BY­ND. As a special exception, the author expressly permits faithful translations of the entire document into any language, provided that the resulting translation (which may include an attribution to the translator) is shared alike. This paragraph is part of the paper, and must be included when copying or translating the paper.

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Volume 01} Issue 01} July 2009

There are many reasons why The International Free and Open Source Software Law Review will be warmly received in legal circles, in the free and open source community and in the wider software industry. For many years the focus in the legal community has been on raising questions about free and open source software licenses and development models. With this journal we have turned the page and begun to focus on the answers. It is rewarding to see lawyers adopting collaborative models to share knowledge and work product, arrive at common understandings, and further the development of the necessary legal ecosystem around free and open source software. It is also significant that this international journal reflects the global community that has formed around these models. My congratulations and thanks go to the editorial board that worked so well together to create this valuable resource.

Karen Copenhaver, Partner Choate Hall & Stewart LLP and counsel to the Linux Foundation

The intersection of open source and the law yields unique opportunities for new insights to be drawn and leadership to be exhibited as we move inexorably toward an era of unrivaled collaborative development. It is only fitting that this journal focus on Legal issues in open source that relate to patents and beyond as we need a forum to discuss and debate critical legal issues so that the full benefit of open source as a modality of invention and innovation can be realized.

Keith Bergelt Chief of (OIN)

Thanks to our Sponsors IFOSS L. Rev. is published by its Editorial Committee. The Committee gratefully acknowledges the sponsorship of its many supporters and donors, including:

Available online at: http://www.ifosslr.org