ORD-2.2
An AI model provider offering it as a hosted service, under ORD 2.2
Trains, fine-tunes, or serves machine learning models commercially. Third parties access the Work as a service you operate. 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
1.13, 1.8, 1.9, 3.1, 4.1, 4.2, 4.3, 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
Offering it as a hosted service
Third parties access the Work as a service you operate.
Rulings
4 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. Third parties access the Work as a service you operate. 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
Is this a Competing Offering?
Yes if the value derives entirely or substantially from the Work itself. Section 4 applies to every Licensee, including Root. A larger independent product remains allowed, but selling, porting, repackaging, hosting, or redistributing the Work as the product requires a separate written agreement.
Sections 1.13, 4.1, 4.2, 4.3
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.