ORD-2.2
A scale-up above the threshold redistributing it without charge, under ORD 2.2
Past the threshold on trailing revenue, now a Canopy Licensee. Passing the Work along without monetizing it or presenting it as a substitute offering. This resolves to the Canopy tier.
Tier
Owed
A quarterly Canopy Report. Section 5.1 imposes a royalty only when the Canopy Licensee makes Production Use.
Sections in play
1.8, 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
Redistributing it without charge
Passing the Work along without monetizing it or presenting it as a substitute offering.
Rulings
2 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?
A quarterly Canopy Report. Section 5.1 imposes a royalty only when the Canopy Licensee makes Production Use.
Sections 5.1, 5.2
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.