ORD-2.2
A scale-up above the threshold repackaging it, under ORD 2.2
Past the threshold on trailing revenue, now a Canopy Licensee. Wrapping or bundling the Work and commercializing the package as the product. 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
A scale-up above the threshold
Past the threshold on trailing revenue, now a Canopy Licensee.
20M to 100M USD
Situation
Repackaging it
Wrapping or bundling the Work and commercializing the package as the product.
Rulings
4 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. Wrapping or bundling the Work and commercializing the package as the product. 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.