OpenRoots

ORL-2.2

A cloud or hosting provider being acquired, under ORL 2.2

Offers managed services to third parties as its primary business. Your company is bought by a larger one, or you buy a Licensee. This resolves to the Canopy tier.

Tier

Canopy

Owed

A quarterly Canopy Report. Section 5.1 imposes a royalty only when the Canopy Licensee makes Production Use.

Sections in play

1.4, 1.8, 2.3, 3.1, 5.1, 5.2, 5.4

Who and what

The situation being resolved.

Actor

A cloud or hosting provider

Offers managed services to third parties as its primary business.

over 2M USD

Situation

Being acquired

Your company is bought by a larger one, or you buy a Licensee.

Rulings

3 questions resolved against the text.

clear

Which tier applies?

Canopy. Offers managed services to third parties as its primary business. 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?

A quarterly Canopy Report. Section 5.1 imposes a royalty only when the Canopy Licensee makes Production Use.

Sections 5.1, 5.2

clear

Is anything owed retroactively?

No. Section 5.4 states the obligation begins on the date the threshold is crossed and applies forward only. Rights already exercised are unaffected. On an acquisition, Section 1.4 aggregates entities under common control, so the acquirer's revenue is what counts from the closing date.

Sections 1.4, 5.4, 2.3

Same actor

Other situations for this party.