OpenRoots

ORM-2.2

An AI model provider being audited, under ORM 2.2

Trains, fine-tunes, or serves machine learning models commercially. The Licensor or Clearinghouse requests supporting documentation. 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

1.8, 3.1, 5.1, 5.2, 5.3

Who and what

The situation being resolved.

Actor

An AI model provider

Trains, fine-tunes, or serves machine learning models commercially.

over 2M USD

Situation

Being audited

The Licensor or Clearinghouse requests supporting documentation.

Rulings

3 questions resolved against the text.

clear

Which tier applies?

Canopy. Trains, fine-tunes, or serves machine learning models commercially. 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

What can an audit actually require?

Documentation once in any twelve month period, absent a documented reason to suspect misstatement. Where such a reason exists, an independent auditor may review under mutual NDA at the requesting party's expense, unless an underpayment above five percent is established, in which case you bear the reasonable cost.

Sections 5.3

Cautions

What this situation gets wrong most often.

  • Section 8.3 forbids imposing a user ceiling, a regional exclusion, or an output-training restriction downstream where this licence imposes none. That prohibition is the point of the instrument.

Same actor

Other situations for this party.