OpenRoots

ORM-2.2

A cloud or hosting provider offering it as a hosted service, under ORM 2.2

Offers managed services to third parties as its primary business. Third parties access the Work as a service you operate. This resolves to the Canopy tier.

Tier

Canopy

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 cloud or hosting provider

Offers managed services to third parties as its primary business.

over 2M USD

Situation

Offering it as a hosted service

Third parties access the Work as a service you operate.

Rulings

4 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?

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

clear

Does this count as Production Use?

Yes. Third parties access the Work as a service you operate. 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

conditional

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 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.