ORM-2.2
A cloud or hosting provider reselling it, under ORM 2.2
Offers managed services to third parties as its primary business. Charging for the Work itself or a lightly modified substitute. 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 cloud or hosting provider
Offers managed services to third parties as its primary business.
over 2M USD
Situation
Reselling it
Charging for the Work itself or a lightly modified substitute.
Rulings
4 questions resolved against the text.
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
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. Charging for the Work itself or a lightly modified substitute. 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 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.
Non-normative. Where this and the licence text disagree, the licence text applies.