ORL-2.2
An early-stage startup embedding it in a product you sell, under ORL 2.2
Funded or bootstrapped, under the threshold, shipping a commercial product. The Work is a component of something larger you charge for. This resolves to the Root tier.
Tier
Owed
Nothing. No fee, no report, no filing.
Sections in play
1.7, 1.9, 2.1, 2.2
Who and what
The situation being resolved.
Actor
An early-stage startup
Funded or bootstrapped, under the threshold, shipping a commercial product.
under 2M USD
Situation
Embedding it in a product you sell
The Work is a component of something larger you charge for.
Rulings
3 questions resolved against the text.
Which tier applies?
Root. Funded or bootstrapped, under the threshold, shipping a commercial product. Below $20,000,000 in trailing revenue, or within an exempt category, no Canopy royalty applies. Sections 4, 6, 8, and 10 still bind every Licensee.
Sections 1.7, 2.1, 2.2
Is anything owed?
Nothing. No fee, no report, no filing.
Sections 2.1
Does this count as Production Use?
Yes. The Work is a component of something larger you charge for. 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.
Revenue is measured across entities under common control, per Section 1.4. A parent company above the threshold makes its subsidiary a Canopy Licensee regardless of that subsidiary's own turnover.
Same actor
Other situations for this party.
Non-normative. Where this and the licence text disagree, the licence text applies.