OpenRoots

ORM-2.2

A side business discovering you are in breach, under ORM 2.2

A sole trader or small partnership earning under six figures from the work. You realise an obligation was missed, and it may have been missed for some time. This resolves to the Root tier.

Tier

Root

Owed

Nothing. No fee, no report, no filing.

Sections in play

1.7, 10.1, 10.2, 10.3, 2.1, 2.2

Who and what

The situation being resolved.

Actor

A side business

A sole trader or small partnership earning under six figures from the work.

under 100k USD

Situation

Discovering you are in breach

You realise an obligation was missed, and it may have been missed for some time.

Rulings

3 questions resolved against the text.

clear

Which tier applies?

Root. A sole trader or small partnership earning under six figures from the work. 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

clear

Is anything owed?

Nothing. No fee, no report, no filing.

Sections 2.1

clear

What happens on breach?

Thirty days to cure from written notice, under Section 10.1. Reinstatement is available on curing and paying what would have been owed, with interest, unless you have already had rights terminated for the same Work within twenty-four months. Downstream recipients who remain compliant are unaffected by Section 10.3.

Sections 10.1, 10.2, 10.3

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.

  • 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.