ORD-2.2
A scale-up above the threshold using it in a larger product, under ORD 2.2
Past the threshold on trailing revenue, now a Canopy Licensee. The Work is one component and customers principally pay for substantial independent functionality. 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
A scale-up above the threshold
Past the threshold on trailing revenue, now a Canopy Licensee.
20M to 100M USD
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.
Which tier applies?
Canopy. Past the threshold on trailing revenue, now a Canopy Licensee. 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. 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 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.