OpenRoots

ORD-2.2

A reseller or systems integrator using it in a larger product, under ORD 2.2

Packages and resells software built by others. The Work is one component and customers principally pay for substantial independent functionality. This resolves to the Canopy tier.

Tier

Canopy

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

A reseller or systems integrator

Packages and resells software built by others.

varies

Situation

Using it in a larger product

The Work is one component and customers principally pay for substantial independent functionality.

Rulings

3 questions resolved against the text.

clear

Which tier applies?

Canopy. Packages and resells software built by others. 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

clear

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

clear

Does this count as Production Use?

Yes. The Work is one component and customers principally pay for substantial independent functionality. 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 1.7 excludes an entity acting as a reseller or intermediary for a Legal Entity above the threshold from the Root tier, even where its own revenue is small.

  • 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.