There is much buzz the last few days in intellectual property circles about the Jacobsen v. Katzer case handed down by the US Court of Appeals for the Federal Circuit.
The open source concept is an alternative business model of innovation, based on cooperation and collaboration and not competition. It works like this: intellectual property rights (IPRs) are asserted by the intitial developer of source code and are licensed out to subsequent users and improvers of the code on conditions that they not assert proprietary rights over their contribution to the improvement or adaptation. I use the example here of source code though the concept has been adapted to various areas of innovation.
Two legal issues have emerged from the open source concept (1) can IPRs be used this way? and (2) what if someone poisons the code with proprietary code? Jacobsen answers the first issue.
The Artistic License n Jacobsen gave users the right to copy, modify, and distribute software "provided that [the user] insert prominent notice in each changed file stating how and when [the user] changed the file..."; "place [the user's] modifications in the Public Domain or otherwise make them freely available"; "use the modified Package only with [the user's] corporation or organization" The defendant breached these conditions.
The court characterized the issue as whether these terms of the license are conditions or convenants to the copyright license. If they are conditions, according to the court, they must be complied with prior to the granting of the license - meaning that if the conditions are breached, there is no permisssion to use, and thus there is infringement. If they are covenants, then a priori the license is granted (and thus there can be no infringement), and the breach becomes contractual in nature. From a practical point of view, the different is significant. As the court states "Copyright licenses are designed to support the right to exclude; money damages [in contract] do not support or enforce that right."
The court finds the terms to be conditions, the breach of which amounted to infringement. The decision seems right on legal and policy grounds. Legally, both the form of the agreement and the substance of the terms seem predicated on IPRs and thus conditional to the grant of a license. On policy grounds, a contrary holding would inhibit the development of an important source of innovation in society.
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