ORD-2.2
An AI model provider deploying to customer-controlled infrastructure, under ORD 2.2
Trains, fine-tunes, or serves machine learning models commercially. Providing professional services while the customer owns and controls the infrastructure and account. This resolves to the Canopy tier.
Tier
Owed
0.5% of revenue attributable to products or services that depend on the Work, capped at $250,000 per year, plus a quarterly Canopy Report.
Sections in play
1.8, 1.9, 3.1, 5.1, 5.2
Who and what
The situation being resolved.
Actor
An AI model provider
Trains, fine-tunes, or serves machine learning models commercially.
over 2M USD
Situation
Deploying to customer-controlled infrastructure
Providing professional services while the customer owns and controls the infrastructure and account.
Rulings
3 questions resolved against the text.
Which tier applies?
Canopy. Trains, fine-tunes, or serves machine learning models commercially. Section 5.2 reporting applies; the Section 5.1 royalty attaches when the Licensee makes Production Use and only to attributable revenue.
Sections 1.8, 3.1, 5.1
Is anything owed?
0.5% of revenue attributable to products or services that depend on the Work, capped at $250,000 per year, plus a quarterly Canopy Report.
Sections 5.1, 5.2
Does this count as Production Use?
Yes. Providing professional services while the customer owns and controls the infrastructure and account. Section 1.9 covers internal operation at operating scope and systems made available externally to customers or the public. Development, testing, evaluation, research, and personal non-revenue use remain outside it.
Sections 1.9
Cautions
What this situation gets wrong most often.
Section 8.3 of ORD requires a withdrawal of consent to propagate to any derivative you have distributed. Whether that is operationally achievable at depth is a published open question.
Same actor
Other situations for this party.
Non-normative. Where this and the licence text disagree, the licence text applies.