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GNU is Not Unix Software

A Software License That's Libre But Not Gratis? 246

duncan bayne writes "My company is developing some software using Ruby. It's proprietary software — decidedly not free-as-in-beer — but I don't want to tie my customers down with the usual prohibitions on reverse engineering, modification, etc. After all, they're licensing the product from us, so I think they should be able to use it as they see fit. Does anyone know of an existing license that could be used in this case? Something that gives the customer the freedom to modify the product as they want, but prohibits them from creating derivative works, or redistributing it in any fashion?"
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A Software License That's Libre But Not Gratis?

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  • No license necessary (Score:3, Informative)

    by morbiuswilters ( 604447 ) on Sunday February 15, 2009 @01:03AM (#26861111)
    IANAL, but if you are not imposing a EULA, you shouldn't need any kind of license. End-user licenses restrict what can be done with the copy of the software that is owned. Licenses like the GPL restrict what can be done when redistributing the software, but impose nothing on the end-users. If you are not wanting to permit your end-users to redistribute, simple copyright is enough to protect your rights without the need for an additional license. If the software is not being redistributed and you aren't requiring a EULA, then the end-users are free to modify the software as they see fit (or do anything with it, except redistribute) under existing copyright law. So it seems copyright law as-is protects you from redistribution and permits your users the ability to modify the software, without the need of any license.
    • by gnick ( 1211984 ) on Sunday February 15, 2009 @01:15AM (#26861155) Homepage

      Officially I think you're right. I deal with several vendors who license their stuff to us. We are often trying to work beyond what their out-of-the-box COTS customers want, so we often ask for a little bit of flexibility (APIs for developing our own aps - nothing fancy). They usually ask for a NDA [wikipedia.org], which may be a good idea in this case too, but nothing fancy.

      IANAL.

      • by grantek ( 979387 ) on Sunday February 15, 2009 @02:24AM (#26861405)

        Depending on how valuable the source actually is, you could go the TrueCrypt/Firefox route and allow redistribution and modification, but use trademarks to protect your "official" version that has monetary value.

        • by scientus ( 1357317 ) <instigatorircNO@SPAMgmail.com> on Sunday February 15, 2009 @03:27AM (#26861591)

          thats specifically not what the poster wants, the creator wants to ensure getting paid, therefore the licence within firefox and truecrypt that permits copying (under certain restrictions) is not acceptable in this case.

          Also trademark stuff is valid for all software or anything even without copyright law even if things are in the public domain. Firefox etc all do more which is to copyleft [slashdot.org] it, making sure that people have to let each next user also view the original source, AND the contributions that any other developer makes, if they distrobute it.

          • by grantek ( 979387 ) on Sunday February 15, 2009 @03:50AM (#26861645)

            Depends who your customers are - most companies I've seen are scared shitless of using anything that doesn't have a brand name.

            The only way you can "ensure getting paid" is by not giving the client any freedom (or source) at all - the whole point of the open business models is that the customer can pick up your code and go pay someone else to support it, and that's ironically why you can charge a premium.

            Really, this "licensed codebase" is something different, and it's done all the time (like licensing a game engine to create your own game), all you need is a suitable NDA to keep anyone leaking the code to the public.

            • by tomhudson ( 43916 ) <barbara.hudson@b ... minus physicist> on Sunday February 15, 2009 @09:07AM (#26862615) Journal

              Not to pick a fight, but,

              • Parent poster's theory: "The only way you can "ensure getting paid" is by not giving the client any freedom (or source) at all - the whole point of the open business models is that the customer can pick up your code and go pay someone else to support it, and that's ironically why you can charge a premium."
              • Actual practice: "They wrote it, so it's probably cheaper + safer (fewer bugs will creap in alongside the new features wo want to add) for us to get them to modify it than to get someone who has to get up to speed on it."

              Only source that's widely distributed and used will get 3rd-party support. Otherwise, customers are pretty much married to the devs.

    • by Brian Gordon ( 987471 ) on Sunday February 15, 2009 @01:45AM (#26861257)
      I would hesitate to rely on copyright law. Since you're a developer you (should) know that everything gets copied everywhere a zillion times in the natural execution of the application code. This may be trivial but file formats and proprietary network protocols or APIs greatly complicate the issue. The way I understand it is that the idea of "licensing out" software instead of just selling it under existing contract of sale law is that you're granted a license to do all that copying and to freely copy created files in proprietary (new) formats across networks and on their hard drives.
      • by Brian Gordon ( 987471 ) on Sunday February 15, 2009 @01:47AM (#26861265)
        Plus of course to effect the control that Microsoft etc and (ahem) the GNU project etc want over what people can do with their IP.
      • by sowth ( 748135 ) on Sunday February 15, 2009 @02:51AM (#26861489) Journal

        Since you're a developer you (should) know that everything gets copied everywhere a zillion times in the natural execution of the application code.

        How is this different than people use textbooks? People "copy" them into not only their notes, but their brain, "a zillion times." Or music? Any CD player which has skip protection copies the data to a RAM buffer to carry out its function. Any MP3 player copies the data to a decoder chip which probably also is copied to a RAM buffer before it is copied to the D/A converter. I could go on, but if you don't get it at this point, you are either screwing with me or are really stupid.

        In fact, "copyright" law should have been named distribution rights law because that is what it does. It doesn't really try to enforce copying like you claim it does. It enforces the authors right to control redistributing the material so he or she can make a profit off of his / her work as if that work were a real physical object. If someone copies a work they purchased for their use (as long as they have the material in their possession), that is within the spirit of copyright law. If someone gives (distributes) a copy to someone else while not assigning them the original copy they procured, this is breaking the spirit of copyright law.

        ...and file formats and APIs don't really complicate anything, at least with US law. (Your jurisdiction my vary) Last time I checked the US Copyright Office site, it said names, recipes, numbers and the results of math and the like were not copyrightable. Computer algorithms are the same as "math." Function names and calling them would apply to this category, would they not?

        Obviously anyone can claim what copyright is supposed to be, but this is the way I see it.

        I would also like to point out the constant asinine claims where many "businessmen" say they can micromanage, demand payment, and otherwise control something they have sold to another are an affront to the basic concept of property. Once you sell something, it isn't yours to control!

        • by akac ( 571059 ) on Sunday February 15, 2009 @10:56AM (#26863171) Homepage

          "but this is the way I see it" means nothing. What matters is how the courts see it, not you.

          As for the last paragraph - that's patently wrong too. Its not the computer code or math that you are copyrighting, it is the entire product of that. Just like nobody can copyright words, but you can copyright a book. It is the collection of words put together that make specific thoughts, ideas, in a particular way.

          And you cannot copy a book or be liable. So you cannot copy a piece of software. That software contains mathematical algorithms put into specific ways, designed with artwork, and more that make it copyrightable.

      • by DrYak ( 748999 ) on Sunday February 15, 2009 @11:22AM (#26863331) Homepage

        I would hesitate to rely on copyright law. Since you're a developer you (should) know that everything gets copied everywhere a zillion times in the natural execution of the application code. This may be trivial

        And copyright law in most (sane) jurisdiction do consider this trivial too.
        A fine distinction is made between :
        - the several copies made between bought media, computer storage, computer RAM, etc... and all other copies which take part as the normal function of the software.
        - a user making a copy of the physical installation media and starting to sell that one on ebay, without having proper license to do so.

        The first case is just normal function of the way computers work. It's tolerated in a lot of jurisdiction and even explicitly allowed in lots of other (it is explicitly stated in the Swiss law, for example).

        The second is blatant copyright violation and is what the copyright laws were written against.

        (although I'm not sure about the USA. You guys managed to accept a DMCA law which prohibits stuff normally allowed under fair use in the copyright laws).

      • by mdmkolbe ( 944892 ) on Sunday February 15, 2009 @01:57PM (#26864379)

        The way I understand it is that the idea of "licensing out" software instead of just selling it under existing contract of sale law is that you're granted a license to do all that copying...

        16 USC 117 [cornell.edu] gives you the right to make any copies that are essential to the utilization of the program. No extra license is necessary.

    • by DustyShadow ( 691635 ) on Sunday February 15, 2009 @01:56AM (#26861301) Homepage

      IANAL, but if you are not imposing a EULA, you shouldn't need any kind of license. End-user licenses restrict what can be done with the copy of the software that is owned. Licenses like the GPL restrict what can be done when redistributing the software, but impose nothing on the end-users. If you are not wanting to permit your end-users to redistribute, simple copyright is enough to protect your rights without the need for an additional licenseIf the software is not being redistributed and you aren't requiring a EULA, then the end-users are free to modify the software as they see fit (or do anything with it, except redistribute) under existing copyright law. So it seems copyright law as-is protects you from redistribution and permits your users the ability to modify the software, without the need of any license.

      This is 100% incorrect. Copyright law does not allow some to create a derivative work without the consent of the copyright owner. And when I say derivative, I mean modification. The author of the summary is confused because he or she does not understand that a modification is a derivative work (assuming modification uses the original aspects of the work that the original author created himself.) You are assuming that copyright protects only from redistribution. That is wrong. Here is what the statute says:

      15 USC 106. Exclusive rights in copyrighted works
      Subject to sections 107 through 122, the owner of copyright under this title has the exclusive rights to do and to authorize any of the following:
      (1) to reproduce the copyrighted work in copies or phonorecords;
      (2) to prepare derivative works based upon the copyrighted work;
      (3) to distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending;
      (4) in the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion pictures and other audiovisual works, to perform the copyrighted work publicly;
      (5) in the case of literary, musical, dramatic, and choreographic works, pantomimes, and pictorial, graphic, or sculptural works, including the individual images of a motion picture or other audiovisual work, to display the copyrighted work publicly; and
      (6) in the case of sound recordings, to perform the copyrighted work publicly by means of a digital audio transmission.

      http://www.copyright.gov/title17/92chap1.html#106 [copyright.gov]

      As you can see, derivative and distribution are two separate rights granted to the copyright holder.

      • by belmolis ( 702863 ) <billposer&alum,mit,edu> on Sunday February 15, 2009 @03:10AM (#26861535) Homepage

        This isn't really accurate. Although it is true that copyright law appears to prohibit the mere creation of a derivative work whether or not it is distributed, in fact some kinds of derivative work are not considered infringing so long as they are not published. If your interpretation were correct, annotating your own copy of a copyrighted book would constitute copyright infringement, which is not the case. You are perfectly free to annotate your books - you are not free to publish your own annotated edition of someone else's book. Similarly, it is infringing to publish a translation of a copyrighted work, but you may make your own translation and keep it for your own use.

        • by nine-times ( 778537 ) <nine.times@gmail.com> on Sunday February 15, 2009 @11:01AM (#26863203) Homepage

          Well the complicate issue is that copyrights aren't meant to inhibit a person's right to distribute things. Whether or not something is distributed may be legally meaningful, but what the laws are really meant to inhibit is copying (and therefore also the creation of derivative work).

          I agree that it seems like a strange thing these days, when digital copying is so simple. We copy things all the time without thinking of it, so the idea that making copies would be the illegal thing seems crazy. But if you think back to something like books-- if you own two books, why shouldn't you be able to sell them? It didn't make sense to legally prohibit people from selling or giving away books that they already had. The issue was as to whether people had the right to create a new copy or create a new derivative work in the first place.

      • by Cyberax ( 705495 ) on Sunday February 15, 2009 @03:44AM (#26861629)

        WRONG!!!

        You are free to create a derivative work of copyrighted material. However, you are NOT free to distribute the end result of your work.

        If you keep modifications in-house then you're OK.

        • by DustyShadow ( 691635 ) on Sunday February 15, 2009 @10:55AM (#26863167) Homepage

          I am not sure where you are getting this idea. The Act says "to prepare derivative works" not "distribute derivative works."

          But hey, if you want to subject yourself and your company to the $250,000 statutory damage per violation, go right ahead.

          And before you say it, a derivative work is considered a copy, so 106(3) covers distribution of derivatives as well.

        • by j0nb0y ( 107699 ) <jonboy300@yaho[ ]om ['o.c' in gap]> on Sunday February 15, 2009 @11:00AM (#26863199) Homepage

          And this is why it's not a good idea to get legal advice on slashdot...

          let's review:

          The exclusive rights granted in copyright law are detailed in 17 USC S 106:

          17 USC S 106 Subject to sections 107 through 122, the owner of copyright under this title has the exclusive rights to do and to authorize any of the following: ... (2) to prepare derivative works based upon the copyrighted work;

          The statute uses the word prepare. You will be in violation even if you don't distribute your derivative work. For a case dealing with this specific subject, see Walt Disney Productions v Filmation Associates, at 628 F.Supp. 871. Unfortunately I can't seem to find a copy of it online.

          IANAL

      • by vux984 ( 928602 ) on Sunday February 15, 2009 @04:03AM (#26861693)

        As you can see, derivative and distribution are two separate rights granted to the copyright holder.

        1) It doesn't really matter. If the copyright holder is ok with them creating a derivate work, then he won't sue them. Its not like the police will intervene and stop anyone from creating a derivative work.

        2) While the author may hold the rights to derivate works, fair use could be used as a defense for a modified/derivative work used within the company made from a legitimately purchased copy.

        So its perefectly ok to buy a book, and highlight the passages you like, and cut out the pages you don't like, creating a derivative work, regardless of what the original author wants.

        (Its not ok, to turn around and start renting those copies out... however, as the blockbuster case determined, but that is a separate issue.)

        • by DustyShadow ( 691635 ) on Sunday February 15, 2009 @11:11AM (#26863271) Homepage

          1) It doesn't really matter. If the copyright holder is ok with them creating a derivate work, then he won't sue them. Its not like the police will intervene and stop anyone from creating a derivative work.

          That's my point. Creation of a derivative work is limited to the copyright holder and a right that must be licensed out in order for someone else to do so.

      • by dotancohen ( 1015143 ) on Sunday February 15, 2009 @06:15AM (#26862011) Homepage

        This is 100% incorrect. Copyright law does not allow some to create a derivative work without the consent of the copyright owner. And when I say derivative, I mean modification. The author of the summary is confused because he or she does not understand that a modification is a derivative work (assuming modification uses the original aspects of the work that the original author created himself.) You are assuming that copyright protects only from redistribution. That is wrong. Here is what the statute says:

        As you can see, derivative and distribution are two separate rights granted to the copyright holder.

        So, how is it that I can bolt a 750 CFM Holley double pumper and an Edelbrock hirise manifold on my Chevy without GM's permission?

      • by Nuskrad ( 740518 ) on Sunday February 15, 2009 @08:07AM (#26862411)
        In UK law there's a specific exception that allows modification of software (but not other copyrighted works) unless expressly forbidden in a EULA or other agreement:

        50C.-(1) It is not an infringement of copyright for a lawful user of a copy of a computer program to copy or adapt it, provided that the copying or adapting-

        (a) is necessary for his lawful use; and
        (b) is not prohibited under any term or condition of an agreement regulating the circumstances in which his use is lawful.

        (2) It may, in particular, be necessary for the lawful use of a computer program to copy it or adapt it for the purpose of correcting errors in it.

        The law also provides permission to make back-up copies of software, to decompile software for the purpose of interoperability and the study and observe the underlying mechanism of software even where the EULA forbids it (any such term being void in the eyes of the law)

        Copyright, Design and Patents Act 1988 [jenkins.eu]
      • by tomhudson ( 43916 ) <barbara.hudson@b ... minus physicist> on Sunday February 15, 2009 @09:30AM (#26862699) Journal

        Every time you load the program into memory, you're creating a derivative work. The copy in memory is NOT an exact binary copy of what's on the disk - in the case of binaries, the loader patches addresses (hence modifying a copy of the "original work"), links to libraries, etc; in the case of scripts, the interpreter creates a modified, derived work when it creates the parse tree from the script, before script execution.

        As you can see, you *have* to have the ability to create derived works, or the program is without use or purpose.

        Just wanted to point out that not all modifications are also derivations, in the practical sense. This was decided with the Game Genie case, where it was held that the sale of a tool that allowed the user to alter the copy in memory did not in fact violate copyright law [wikipedia.org]:

        The introduction of the original NES Game Genie was met by fierce opposition from Nintendo. Nintendo sued Galoob in the case Galoob v. Nintendo, claiming that the Game Genie created derivative works in violation of copyright law. Sales of the Game Genie initially stopped in the U.S., but not in Canada. In many gaming magazines of the time, Galoob placed Game Genie ads saying "Thank You Canada!" However, after the courts found that use of the Game Genie did not result in a derivative work, Nintendo could do nothing to stop the Game Genie from being sold in the U.S. Sega, on the other hand, fully endorsed the product with their official seal of approval. Before the lawsuit was filed, Galoob offered to make the Game Genie an officially licensed product but was turned down by Nintendo.

        It's clear that the Game Genie does create a derived work. It's also clear that derived works are not necessarily banned by copyright. Where it would stop is with redistribution of the work (in the case of Nintendo, a bin of the moddede game), as apposed to the Game Genie itself.

        That being said, I think this whole discussion is a tempest in a tea-pot. Simply put, you sell them the script along with an agreement saying that it is protected copyright, that the customer has the NON-TRANSFERRABLE right to use the software, as well as create enhancements or modifications for their own internal use, but does not have the right to redistribute the software.

        Make sure you make it non-transferrable - with the waves of bankruptcies and amalgamations going around, you don't want to see your work get a "Second Life" well beyond the intended scope of the original agreement.

        • by DustyShadow ( 691635 ) on Sunday February 15, 2009 @11:10AM (#26863261) Homepage

          There is a specific statutory provision that covers copies that are loaded into memory. Courts have also ruled this to be fair use.

          And I am pretty sure the Game Genie case was ruled to be a fair use. Fair use doesn't come into play until there is an actual violation. It's been awhile since I've read that case but there is a string of cases that say you are allowed to copy a part of software that is original in order to get to the non-original and non-protectable idea that is behind it, as long as you delete that copy once you discover that "idea." (Ideas are not copyrightable btw). The reason this is fair use is because not allowing someone to do so would techically give the copyright holder protection for the idea as well. Copyright law was not meant to do that. This is why reverse engineering is allowed by copyright law and why so many EULAs specifically prohibit it.

      • by jbolden ( 176878 ) on Sunday February 15, 2009 @11:30AM (#26863375) Homepage

        There is the original materials clause regarding derivative works. You can utilize materials to produce a derivative work since that doesn't involve copying and thus isn't subject to copyright law.

    • by moderators_are_w*nke ( 571920 ) on Sunday February 15, 2009 @06:24AM (#26862025) Journal

      IANAL either, but as far as I am aware, if you don't license your software, your users cannot download or install it as to do so requires them to make a copy.

      This is fine for an old NES game where its always used off the original media but on PCs most people expect to run stuff off their hard disk.

    • by mcrbids ( 148650 ) on Sunday February 15, 2009 @08:36PM (#26867119) Journal

      IANAL, and you should get one.

      I know this is an unpopular opinion, and I'll probably get modded down for this. But seriously, if your enterprise is going to go anywhere, you need competent legal representation from the get go. If you don't have a lawyer on staff or as a partner, you should hunt around and find a decent lawyer who is willing to partner with you for a minority equity stake. Find a reasonably guy who's able to see the long-term potential of your company and is willing to invest the time that it takes to ensure a strong legal foundation, and you won't regret your equity loss even one day. (I'd say that in a startup with 2-4 partners, a %10 stake is probably about right, YMMV)

      Slashdot is littered with condescending posts about business majors who thought that what programmers do is just simple and who tried to do it themselves, and did a total WTF stupid in the process. Things like trying to write enterprise, thousand-user software in FileMaker Pro. Or secure a website with javascript-based access control. Or passed passwords via telnet over the plain-Jane Internet. Or any of a thousand other obvious stupids that only somebody completely clueless about technology might think is a good idea.

      And when it comes to anything legal, you are just as dumb, just as clueless, and just as likely to do a serious WTF that leaves your fledgling company high-and-dry, or worse, in deep liability doo-doo. Lawyers go to school and learn the meanings of all kinds of "almost-English" words like "good faith" and "collateral estoppel" that mean almost nothing to you or I, but have real implications when brought up in court or on contracts.

      You are an expert in your field, you expect (and deserve) to get paid well for your time. Lawyers are in the same boat, in a different industry.

      At the very least, see sites like Legal Zoom [legalzoom.com] or Nolo Press [nolo.com] and have some reasonably decent quality documents to start with. That is, until you can get some reasonable legal representation.

      The bottom line: if you don't get legal representation, you are going to be legally representing yourself. And you'll probably muck it up just as bad as the idiot who thought that writing a high-quality 3D FPS game in Perl was a good idea.

  • by drDugan ( 219551 ) on Sunday February 15, 2009 @01:09AM (#26861131) Homepage

    um, like, hire a real lawyer. really, dude.

    • by Cadallin ( 863437 ) on Sunday February 15, 2009 @01:22AM (#26861185)

      um, like, hire a real lawyer. really, dude.

      ^ ^ That. Seriously. But secondly, You're asking about EULAs. The GPL is not a EULA. None of the libre/Open Source licenses are EULAs.

      What you want is purely the domain of contract law. The conditions under which you license software you own are between you and the licensee. Plus whatever court has jurisdiction if either of you decides to sue. Hire a lawyer if you're not confident on what provisions are likely to hold up under a judges scrutiny.

    • by seanadams.com ( 463190 ) * on Sunday February 15, 2009 @01:34AM (#26861229) Homepage

      um, like, hire a real lawyer. really, dude.

      That's real brilliant advice, but the problem is there are astonishingly few lawyers who will have the slightest clue how to answer this question.

      I would suggest that a techie's best bet is to get as informed as possible before taking this to a lawyer, because it's really treading new ground. Can you tell I've been there?

      Slim Devices, and subsequently Logitech, wanted to pursue this kind of license for our firmware, so that we could allow customers to have certain benefits of open source, without enabling competitors to make knock-offs of our hardware products with no effort beyond soldering down the parts.

      Ages ago I came up with the Slim Devices Public Source License [slimdevices.com], which later got rolled into the Logitech Public Source License. Only recently did we actually ship a major firmware product based on it, which is the SqueezeOS platform that underlies the (imminently hackable, linux based) Squeezebox Controller. Customers can see the source code, learn how it works, customize it to their needs, etc, but they are not allow to redistribute without permission. It's not "Open Source" by the official definition, but it's a great compromise IMHO which met our business constraints.

      I searched far and wide for lawyers who understood these technicalities, and even at a major multi-B corporation with an awesome legal team, this was new ground. So educate yourself and check out as many examples as possible, and then find a good IP specialist to help you craft a license, but be prepared to prescribe exactly what you want that license to do.

      • by rleibman ( 622895 ) on Sunday February 15, 2009 @02:16AM (#26861377) Homepage
        Dude... you absolutely rock, I love my duet and will be buying a boom soon. A very happy customer
      • by Secret Rabbit ( 914973 ) on Sunday February 15, 2009 @02:47AM (#26861473) Journal

        Treading new ground... not so much. I had a friend do this in the late 90's/2000. And unlike someone else said higher up on this page, you most certainly DO need a license. It will be a separate and different license from the one the original authors hold (obviously). But, it most certainly is necessary.

        To the "asker": I'd recommend looking at the GPL and other restrictive licences to look through things that you both want and don't want. Once complete, take a look and see if you want anything else in that list. Then *after* that, go to a lawyer, consult and get something drawn up. You're going to want to make sure to explicitly state that the licensee will get the code, be able to make modifications, BUT those modifications will not be supported by your company and doing so will also limit your ability to provide help otherwise. It should also be explicitly stated that they cannot create derivative works or otherwise sell or use your product (directly or indirectly) in any part of a product that they may sell beyond the original agreement.

        But, you DO need a lawyer. So, stop being a dumbass asking slashdot about legal advise and go get one.

        • by uvajed_ekil ( 914487 ) on Sunday February 15, 2009 @03:20AM (#26861573)
          There's your license right there (see above). Find a lawyer who isn't afraid of IP to translate it into legalese. That could be the hard part, depending on where you are located, but knowing what you have and what you want to allow is the key. As someone posted earlier though, copyrighting your work but not requiring a restrictive EULA could accomplish what you want, if that is to allow the purchaser to use the product as they see fit (modifying it as needed, perhaps in ways that limit your liability to provide support), without permitting redistribution.
      • by uvajed_ekil ( 914487 ) on Sunday February 15, 2009 @03:07AM (#26861521)
        um, like, hire a real lawyer. really, dude.
        That's real brilliant advice, but the problem is there are astonishingly few lawyers who will have the slightest clue how to answer this question.


        That's why I'm going back to school for a law degree and focusing on intellectual property. This is clearly a niche that is growing and will continue to grow but definitely lacks enough "experts," or even many trained practitioners. You are very right, and I hope to capitalize on the fact few lawyers have any software knowledge at all, and few have any interest or experience with IP. This is a rapidly evolving field, which is the kind of thing that scares attorneys who are used to being able to refer to their text books for long standing, well-settled precedents. Granted, my own programming abilities are rudimentary, at best, but a good grasp of the basic concepts and issues in question should prove very useful. Being lumped into a category with slimy litigators and ambulance chasers is certainly not appealing, though I don't anticipate finding any shortage of clients once I pass the bar. Professional legal advice is a must for any serious software company, but finding knowledgeable, affordable counsel can be quite difficult.
      • by julesh ( 229690 ) on Sunday February 15, 2009 @06:46AM (#26862097)

        That's real brilliant advice, but the problem is there are astonishingly few lawyers who will have the slightest clue how to answer this question.

        I would suggest that a techie's best bet is to get as informed as possible before taking this to a lawyer, because it's really treading new ground.

        That's very strange, because I've seen this kind of license several times in my experience as an IT consultant. Your license seems to differ a little from what I've seen before, so I suspect your goals were slightly different. The terms of your license allow for redistribution of modifications, which I don't think is something the original poster was looking for, and would have substantially complicated the licensing terms.

        What the OP wants is a standard license grant, with the additional term "you are permitted to prepare derivitive works of the Software for your own internal use; this does not give you a license to distribute derivitive works or modifications to the Software." Seriously, this is simple stuff that any remotely competent lawyer should be able to handle and is likely to have seen hundreds of times before.

        even at a major multi-B corporation with an awesome legal team this was new ground

        Don't expect a corporation's legal team to have experience in anything that corporation has never done before. Look at independent copyright lawyers who have worked for many companies; they'll be much more widely experienced. Most major cities should have several firms of copyright lawyers who have plenty of experience in this field.

      • by Thundersnatch ( 671481 ) on Sunday February 15, 2009 @09:41AM (#26862753) Journal

        That's real brilliant advice, but the problem is there are astonishingly few lawyers who will have the slightest clue how to answer this question.

        What a load of crap. I regularly participate in negotiations with lawyers who specialize in software licensing, and every single one I've met would be capable of constructing an equitable agreement to address the OP's situation.

        Believe it or not, techies are not the only people who can be are smart, or competent at their chosen profession. And not all lawyers are "history major potheads who somehow got into law school".

    • by WindBourne ( 631190 ) on Sunday February 15, 2009 @08:55AM (#26862569) Journal
      First, there is no reason NOT to be. He asked a VERY legitimate question. In fact, it is one that I am surprised that has not be done so far. When you think about it, many of us want open source to succeed, but many of the small companies do not want to supply their competitors either. Until ppl get over their fears about OSS, something like this would be useful.
      Second, The guy was wondering if there was a license that would handle this. Turns out that there really is not. So, yes, it is possible that a lawyer in the OSS wold will step forward and take this on, or he or the company may have to do it.
      • by tverbeek ( 457094 ) on Sunday February 15, 2009 @10:22AM (#26862993) Homepage

        I am surprised that has not be done so far.

        Don't be, because it has been done. Giving clients the source code to modify was fairly common in ye olden dayes, back before hardware became a standardized commodity and software became a mass-market shrinkwrapped product. When a client licensed software, they might buy a support contract which would get them X amount of customization, or they'd get the source code and support it themselves, or both.

      • by ray-auch ( 454705 ) on Sunday February 15, 2009 @10:34AM (#26863059)

        > He asked a VERY legitimate question. In fact, it is one that I am surprised that has not be done so far.

        This has been done plenty of times before - just probably not on /. because it isn't really a free/open-source thing to do.

        I have licensed several commercial products from other parties with full source and modifcation rights before - but I would regard all the cases as being "commercial / proprietary" software vendors, rather than anywhere near the FOSS world.

        If the number of customers is small I would suggest you will probably want a proper contract rather than relying on copyright / EULA. As has been said, ask a lawyer to draw one up. That sort of arrangement is really very common in the commercial software world, plenty of corporate lawyers should be capable of handling it.

        If you are looking at wide distribution and really want to rely solely on EULA / copyright, then there are cases where this has been done before that would be worth looking at. One example I can think of is that Microsoft used to ship (way before the "shared source" rubbish) the MFC libraries as modifiable, and in fact re-distributable, (with conditions on your version being renamed to avoid clashes etc.). Might be worth a look at their old licences (or the current ones even - I'm not sure if they still ship MFC as modifiable though). Also in the MS world, Dundas (dundas.com) have shipped commercial grid and chart controls for years with full source code - might be worth loking at their licenses.

    • by tverbeek ( 457094 ) on Sunday February 15, 2009 @10:11AM (#26862929) Homepage
      A competent contract lawyer who works in the field of software licensing can easily help with this. All the OP needs is a business-to-business software license with a provision that the client gets the source code to modify for their own use as needed. It's something that's been done since long before the GPL or BSD license came along. But a tech looking for an off-the-shelf license to modify and use is a bit like a lawyer downloading the Linux kernel source and trying to hack it to run on his homebrew hardware.
  • by dyfet ( 154716 ) on Sunday February 15, 2009 @01:14AM (#26861151) Homepage

    Like many people, you seem to assume incorrectly that copyright law, as defined historically, can be used to artificially control what people do with something they have received and use in their own privacy in the first place. You actually do not have to do anything outside of existing copyright law as it is historically understood and intended to accomplish what you desire. This is why the GNU General Public License, as a copyright license, has to explicitly offer the right to sub-license (distribute) original or derivative works.

    Now some evil companies try to attach additional restrictions using common contract law to claim additional rights they do not actually have under copyright to deprive people of their existing and even constitutional rights (and what can in many situations be considered contracts of adhesion), and the results of these bastardizations are what is often called things like eula's.

    • by Brian Gordon ( 987471 ) on Sunday February 15, 2009 @01:55AM (#26861293)

      as it is historically understood

      Why is it that you couldn't just say "as it is currently understood"? Obviously because it's not understood that way anymore. Copyright today bears very little resemblance to old copyright law. IANAL, but I read a book [wikipedia.org] once.

      • by Jane Q. Public ( 1010737 ) on Sunday February 15, 2009 @03:59AM (#26861681)
        I, too, deplore the changes in copyright law, like the ridiculous extensions. (What it is now? Life + 70 years?) And... Gawd... not to mention the abomination that is the DMCA.

        Copyright laws were distorted from their original purpose, which was to promote the creation of original works for the public good, to what it is now, which is more like a guaranteed profit factory at the expense of the public. Not good at all. Things were better before the changes.
  • by Anonymous Coward on Sunday February 15, 2009 @01:16AM (#26861159)

    which was the name of Microsoft's family of "not quite open source" licenses a few years back. Several products allowed you to examine the source code but do little else. I don't think they even allowed you to modify and recompile it in those days, but they've since replaced it (IIRC) with the "Microsoft Permissive License" which might be less restrictive.

    One product I remember was Rotor, a sample implementation of the .Net Common Language Runtime (similar to Mono but not as comprehensive). Another was the WTL Win32 GUI framework, which was an alternative to MFC based on ATL (Active Template Library).

    Slashdot was even more heavily anti-MS a few years ago and there used to be withering sarcasm at any mention of "Shared Source"... not so sure about today.

    • by Brian Gordon ( 987471 ) on Sunday February 15, 2009 @01:59AM (#26861317)

      Slashdot was even more heavily anti-MS a few years ago and there used to be withering sarcasm at any mention of "Shared Source"... not so sure about today.

      That's because it was a pathetic attempt to Extend to the free software community and gain some brownie points with the snowballing number of people who think they're evil. In this case it's someone legitimitely interested in giving freedom and flexibility to his clients but not giving up his business by just giving his product away.

      • by moosesocks ( 264553 ) on Sunday February 15, 2009 @07:00AM (#26862151) Homepage

        That's because it was a pathetic attempt to Extend to the free software community and gain some brownie points with the snowballing number of people who think they're evil. In this case it's someone legitimitely interested in giving freedom and flexibility to his clients but not giving up his business by just giving his product away.

        I thought it was for 'academic' purposes, to demonstrate how real operating systems worked.

        Sure, it might be somewhat nefarious to indoctrinate the youth and academics... however, the Extend/Embrace/Extinguish accusation always struck me as being completely paranoid, as the same logic could just as easily be applied to any good deed, regardless of what the motivation might have been.

        Occam's Razor would most naturally lead to the conclusion that Microsoft wanted to clean up its image by making a few small concessions that wouldn't hurt its overall business.

      • by wrook ( 134116 ) on Sunday February 15, 2009 @10:00AM (#26862859) Homepage

        legitimitely interested in giving freedom and flexibility to his clients but not giving up his business by just giving his product away.

        I just want to modify that statement (I hope you don't mind modification and redistribution of your comment :-) ).

        by not giving up his business plan by just allowing redistribution

        While it is true that there are some businesses who haven't figured out that they need to charge for their work, I think they have mostly died out. Charging for your product is one way to make money. Using this method you must create artificial scarcity of your product so that you can charge for making a copy (which is virtually free). Thus you must restrict your customers from making their own copies and distributing them.

        Another way to make money is to charge for your work. Someone pays you to do some programming. You do it. You give them the software. They do whatever they want with it (including redistributing it). Notice how you are paid in the first step. There is no need for artificial scarcity and no need to restrict your customer from distribution.

        You can make money using both business plans. Thus "giving away your product" is not equivalent to "giving up your business". But if you do it, you obviously must change your business plan. In other words, you better make sure that you are getting paid for the work you are doing. Setting up your business this way can be quite challenging if you aren't used to it. But there are also some pretty serious advantages to doing so (the primary being that you don't need a lot of capital up front).

    • by dotancohen ( 1015143 ) on Sunday February 15, 2009 @06:19AM (#26862021) Homepage

      Several products allowed you to examine the source code but do little else.

      That product was Windows Vista. [ubuntuforums.org]

    • I don't think anyone objected to Microsoft giving customers source code; it's certainly an improvement on their previous practice of not doing so. What irked people was the term "shared source", which was seen as an attempt to confused the term "open source" by introducing a similar-sounding phrase without the same rights attached to it.

  • Not much needed (Score:4, Insightful)

    by Zerth ( 26112 ) on Sunday February 15, 2009 @01:18AM (#26861165)

    Slap a big "You can't distribute our code or your modifications" on it.

    Seriously, though, you don't need much of license to cover "hack it, don't share it". It is the copyright/patent crazies that add the "can't decompile, modify, etc". The default state of copyright is you buy it, you can bang on it, you can set fire to it, but you just can't make copies or derivative works.

    All you really need to make clear is that you consider patches, mods, etc to be derivative works and remind them that they can't share them.

    That will last until somebody makes the first User Group list, but at least you tried. Make sure you get enough money up front, because your consulting money will dry up after enough users feel overcharged that one gets into the fixit business.

    • by ralphdaugherty ( 225648 ) <ralph@ee.net> on Sunday February 15, 2009 @11:26AM (#26863353) Homepage

      That will last until somebody makes the first User Group list, but at least you tried.

            The model of selling source code with the product has worked for decades on IBM computers. On the other hand, the computers have serial numbers and a portion of the licensed code without source code checks for the serial number, so there is more than trust going on in stopping redistribution of the source code. (Obviously attempts can be made to bypass that.)

            The billions of lines of COBOL and RPG code that is mentioned occasionally in language discussions stems as much or more from products shipped with source code and modified extensively as code written from scratch. In fact much code written inhouse is commonly based on architectural guidelines and code standards of a major customized package the company is running.

            In 20 years on the IBM midrange AS/400 iseries and following industry news closely, I can't recall hearing about any vendors having to sue because of unauthorized redistribution of their product source code or derivatives. While most of those package software vendors have gone out of business, their products have been bought up by a few cash cow vendors milking the licenses, and they would sue if they needed to.

            There was never any controversy in licensing the product source code, or any particular name for it that I recall, it was standard procedure in our industry. I've only dealt with home grown for last five years though with a multi-billion dollar company, and lots of shakeout and consolidation of vendors since then, so can't speak to what a few large remaining cash cow vendors may be doing now.

        rd

  • by zotz ( 3951 ) on Sunday February 15, 2009 @01:19AM (#26861175) Homepage Journal

    You have been able to buy dBASE based accounting software that comes with source code for years. Some even allowed you to sell modules you developed based on this source - I don't know the details of that... perhaps you paid more for the license which allowed the selling of said modules, perhaps you paid per copy sold. I imagine a little research would turn up the info.

    You can probably easily do what you wish, but you are not likely to (let's say you will not) find a Free license as Free licenses are defined by the Free Software Foundation which will let you do what you want.

    Nothing makes you give copies away gratis, but the libre side prevents you from placing such restrictions on people who get code from you. If they want to make copies of Free code away gratis, the libre part will let them do so. If it didn't, it would not be libre.

    all the best,

    drew

  • Terms & Contracts (Score:4, Insightful)

    by logicnazi ( 169418 ) <gerdes AT invariant DOT org> on Sunday February 15, 2009 @01:21AM (#26861183) Homepage

    I don't remember the exact definitions but I seem to remember that any modified copy of the product that your customers create, even if it is never distributed, counts as a derived work.

    Now if you are really going to be selling this software as a commercial product I think it's a mistake to do so without getting some legal advice. The fact that you are selling your product (instead of giving it away) may very well create implied rights of action, e.g., state or federal law may allow customers to sue you for damages if your product causes data loss or otherwise fails to live up to expectations. Therefore failing to get legal advice might open you up to liability.

    Of course there are probably generic software licensces that are prewritten but the genericity usually comes from the fact that they cover your ass by restricting the customer's rights as much as possible. Still, if you look you might find something.

    What you really seem to want is a licenses that give the customer the rights to use the work and create derivative works as they see fit but not to redistribute the work or any derived works. Since you should be getting legal advice anyway this would be trivial for a lawyer to arrange.

    • by mark-t ( 151149 ) <markt@nerdf[ ].com ['lat' in gap]> on Sunday February 15, 2009 @04:17AM (#26861727) Journal

      I don't remember the exact definitions but I seem to remember that any modified copy of the product that your customers create, even if it is never distributed, counts as a derived work.

      While technically correct, if it is never distributed or offered for distribution in any way whatsoever, there is no capability whatsoever to enforce what people do in private. Such private copies are, even though unauthorized, generally implicitly exempt from copyright infringement.

  • Wait, what? (Score:5, Informative)

    by Timothy Brownawell ( 627747 ) <tbrownaw@prjek.net> on Sunday February 15, 2009 @01:23AM (#26861193) Homepage Journal

    gives the customer the freedom to modify the product as they want, but prohibits them from creating derivative works

    Modifying the product is creating a derivative work.

    My company is developing some software using Ruby. It's proprietary software â" decidedly not free-as-in-beer â" but I don't want to tie my customers down with the usual prohibitions on reverse engineering, modification, etc. After all, they're licensing the product from us, so I think they should be able to use it as they see fit.

    Look into selling them a copy of your software, instead of a license to use a copy of your software. US copyright law does permit people who actually own a copy of software to make certain kinds of modifications (don't recall what exactly), make the needed copies to actually use it (disk -> ram, etc), and such.

  • by drolli ( 522659 ) on Sunday February 15, 2009 @01:30AM (#26861215) Journal

    mathworks has been doing that for decades now. They are extremely friendly when a customer gives them a bug report and tells them the place in their code where the bug is buried.

  • immunity (Score:4, Interesting)

    by Deanalator ( 806515 ) <pierce403@gmail.com> on Sunday February 15, 2009 @01:34AM (#26861225) Homepage

    You might want to check out Immunity.

    http://www.immunitysec.com/ [immunitysec.com]

    They sell CANVAS, an exploitation framework. A subscription is pretty expensive (that is, dirt cheap compared to core impact), but it comes complete with python source code, and the licence they use gives full rights to modify any of the code as you need to (sort of a requirement for exploit frameworks).

    • by mrcaseyj ( 902945 ) on Sunday February 15, 2009 @03:21AM (#26861577)

      A company that sells an exploitation framework doesn't have to have a very good contract. They don't have to go to court to get their money. They just tell their customers to pay and they pay. Because something bad might happen to their computers if they don't pay.

  • by pthisis ( 27352 ) on Sunday February 15, 2009 @02:15AM (#26861375) Homepage Journal

    Something that gives the customer the freedom to modify the product as they want, but prohibits them from creating derivative works, or redistributing it in any fashion?"

    This question shows a total lack of understanding for what "libre" software is.

    A license along those lines would not be "libre but not gratis". Being freely redistributable and allowing derived works are core parts of "libre" software.

    All the common definitions of "libre" software (OSF, DFSG, etc) include statements like:

    "Free Redistribution

    The license shall not restrict any party from selling or giving away the software as a component of an aggregate software distribution containing programs from several different sources. The license shall not require a royalty or other fee for such sale."

    and:

    "The license must allow modifications and derived works"

  • by sentientbrendan ( 316150 ) on Sunday February 15, 2009 @02:22AM (#26861397)

    Obviously Sun used to do something similar with Java.

    The Python IDE I use, Wing, also allows you to access their source so you can recompile on various platforms.

    Historically, AT&T unixes were distributed with source.

    Really, I've always found it weird that proprietary software companies seem to think it's important to keep the source code super secret, as if it were some kind of trade secret. Having the source available for recompile and modification is handy for the user, whereas the risk that someone will copy past your source code is somewhat minimal. After all, integrating different source bases is an enourmous amount of work, and fairly easy to detect after the fact.

    • by ADRA ( 37398 ) on Sunday February 15, 2009 @06:56AM (#26862135)

      > important to keep the source code super secret

      The reason will most likely be listed below:

      1. End users making their own changes but still complaining about error that may or may not be a result of their unauthorized modifications

      2. Afraid that other competitors will 'leverage' your investment in development using legal or illegal means.

      3. They don't want anyone to know that they 'leveraged' your investment in development to further their own product using legal or illegal means.

      4. They didn't bother to patent anything and they're relying on being hidden to keep their trade secrets safe.

      5. They license another developer's code which has the exact same limitation, and instead of negotiating with the upstream dev for source distribution rights or reimplementing the needed functionality themselves, they just choose to do nothing.

      Anyways, many development environments/frameworks allow for source distribution because customers want to know why an obscure function 3 stack steps into your API routine is throwing ugly errors at you. With clear-and-open source, a developer could use a debugger and realize that they screwed something up before having to contact support with an obvious (to the original dev) problem.

      Outside development libraries/frameworks and free products, a full source dump of any given product is pretty rare, at least from my experience.

  • To clarify ... (Score:2, Informative)

    by duncan bayne ( 544299 ) <dhgbayne@gmail.com> on Sunday February 15, 2009 @02:46AM (#26861469) Homepage

    When I wrote:

    but prohibits them from creating derivative works, or redistributing it in any fashion?"

    I meant to imply the redistribution of derivative works there.

    Obviously, modifying the software in-house counts as a derivative work, and I'm okay with that - just not with the idea that customers would then onsell or give away the modified product to other potential customers.

    • by anthony_dipierro ( 543308 ) on Sunday February 15, 2009 @11:11AM (#26863267) Journal

      Obviously, modifying the software in-house counts as a derivative work, and I'm okay with that - just not with the idea that customers would then onsell or give away the modified product to other potential customers.

      Just selling source code and not granting any license at all would probably accomplish that in practice if not strictly by law. In-house modifications are arguably fair use, and even if not it's basically unenforceable law anyway.

      Personally I'd want to go one step further. I'd like to allow (and encourage) distribution of modifications (for free or for a charge), to people who already purchased the original.

  • by Jane Q. Public ( 1010737 ) on Sunday February 15, 2009 @03:54AM (#26861659)
    You do not need any "licenses" at all. Just retain all copyrights, and SELL (rather than license) the product to your customers.

    You own the copyright so they can not make derivative works, or copy and distribute the product, etc. But they can do whatever they want, internally, with the product they purchased, just like a book.
  • by FrankDrebin ( 238464 ) on Sunday February 15, 2009 @04:02AM (#26861691) Homepage

    Topic title and summary do not agree, since libre != proprietary, at least going by the FSF definition.

    Kudos for the interest in having license terms less draconian that we see with most commercial software, but this does not make software "free/libre".

    Not a lawyer here, but it seems to me as copyright holder, one can write any license terms at all so long as the licensee is willing accept them (and they are lawful; no clauses calling for sacrificing virgins, etc).

  • EVERY CUSTOMER ALREADY HAS THE RIGHT TO MODIFY ANY PRODUCT HE BUYS AND DISTRUBTE THIS MODIFICATION.

    Lets examine this because with software and media we have allowed ourselves to forget this.

    Cars, the eternal slashdot metaphor for everything, are a prime example. I am allowed to buy ANY car in the world, modify it in any way I want and sell it. THE ONLY restriction in this case is that it must be road safe but this has NOTHING to do with what the original manufacturer wants. There is a HUGE industry that modifies cars. In fact if you want a special type of vehicle you are pretty much required to modify an existing one.

    Imagine what "no modification" and "no redistribution" would mean for the food industry. You couldn't cook anything not even share a biscuit with someone.

    But we are talking about media you say. Okay, newspaper cuts. This has died down a bit but most big companies used to have someone reading all newspapers for articles of intrest and cut them out for information and the archive.

    So in most countries where idiotic bought laws have not raped the customers basic rights the end-user already HAS the right to modify software AND to distribute these modifications. The legal problem with most mods is that you do NOT pass the original product with it. If I modded a bought copy of a game and modified it and then sold that copy on there is NOTHING that can be done against it under dutch law for instance.

    So you are basically asking for a piece of text that already allows customers to do what you want to allow them to do. So include common law with your product and you are done.

    • by BeaverCleaver ( 673164 ) on Sunday February 15, 2009 @05:53AM (#26861959)

      I hate replying to car analogies, but here goes:

      You can buy a car and do whatever you want with it, but this will void the warranty and the manufacturer will not support you if it breaks down.

      You can sell the car, but NO WAY are you allowed to copy the car and sell those copies. Say if you own a car factory, you're not allowed to buy one Ford F100, then reverse-engineer it and sell identical copies as Ford F100s. Nor are you allowed to change, say, the colour of the upholstery, then sell the whole thing as your own work. No way. It's not just the electronic media that has these restrictions.

    • by ADRA ( 37398 ) on Sunday February 15, 2009 @07:31AM (#26862283)

      I seriously doubt you can buy a ford, rip out its innards and re-sell the product with different parts and still legally call it a ford. You don't have the right to sell something that you've changed and keep the same naming unless the manufacturer has through contract or permission given you the right to use their trademarks. Generally Ford or the like don't care when you make some tweaker variation of their cars, but if you happen to make mods that end up in fatalities and you can be damn sure that they'll stretch the long arm of the law to strike you down.

      To take this further, look at movie studios who put stops on resellers that were buying up their movies and then cutting obscenity out of mature movies then selling them as family safe movies.

      Every person who's name is in those credits game permission for their names to be in that movie. By having the intermediary company stepping in, the people who's names are proudly shown on the film credits have lost the right to not want their name used. Think of the worst case: I make a prono and slap Stephen Spielberg's name as the director. Is this beyond your reasoning of fair use ? (PS: I love fair use within the terms of my country's current laws)

      If this was to be hunky dory, I'd want every one of those actors, producers, directors, etc.. to sign off on their names being used by the work not approved by them or their paying employers. Just look at the David Lynch / Dune saga to see that one's name means on a film.

      When you share a biscuit, you're sharing the object, not it's trademark. Once cooked, it holds no copyright or trademark application (most likely). If I made a knock off girl guide cookie which does have a trademark on-object, I could be sued for trademark infringement and rightly so.

      I recently attended a Stallman talk on software and any type of IP in terms of use and I must say he's about as nutty as yours are in terms of the practical applications of your philosophies upon society.

      > If I modded a bought copy of a game and modified it and then sold that copy on there is NOTHING that can be done against it under dutch law for instance.

      For dutch law, what recourse do the production staff of said game have when their names are being applied to products they didn't wholly create or approve of? If I ran a dutch library and photocopied every book we acquired and handed out the copies, would that also be legal in dutch law?

  • by Peaker ( 72084 ) <gnupeaker@NosPAM.yahoo.com> on Sunday February 15, 2009 @06:29AM (#26862043) Homepage

    Modifying it is creating derivative works.

  • by sqldr ( 838964 ) on Sunday February 15, 2009 @06:52AM (#26862117)
    Microsoft already provide this, with their "shared source" license. Have a read of it.
  • by ivoras ( 455934 ) <ivoras@nospaM.fer.hr> on Sunday February 15, 2009 @07:04AM (#26862167) Homepage

    The described situation is very common, especially for web applications and for enterprise applications that are supposed to be used in the long term. There is absolutely no magic here and it's actually legally a "well known" situation (no need to invent anything new).

    Simply sell your software as any other proprietary software (pick up any legal contract that suits you) and add a clause that says something like: "the buyer shall receive complete copy of the source code of the applications together with tools and instructions how to build the application, and the right to use and modify this source code for any purpose. This right shall not be transferable to third parties."

    .

    As always, IANAL, get it read by someone who is. Also, this means you need to stay away from libraries licensed under the GPL and similar licenses which prohibit the "this right is not transferable" part.

  • by FellowConspirator ( 882908 ) on Sunday February 15, 2009 @08:49AM (#26862553)

    Just put some wording like this in the files:

    Copyright 2009, Duncan Bayne. ... what you are asking for is basic copyright protection. In the absence of a license, but with the presence of a copyright notice you are permitting the person/entity that you provided the copy with to take a work and use it anyway they see fit with the restriction that they are not permitted to distribute a copy to any other party.

  • by KarlH420 ( 532043 ) on Sunday February 15, 2009 @09:39AM (#26862743) Homepage
    Seems like you want to sell it with commercial license + NDA over the source code. .
  • by Lorens ( 597774 ) on Sunday February 15, 2009 @09:45AM (#26862775) Journal

    Radiator (a commercial Radius server) is provided with source code. Their license is at http://www.open.com.au/license.html [open.com.au]. I just read it (again), and the legalese seems rather complete, you just have to remove the sentence saying that derivative works are not permitted, and replace it with something saying that the Licensee is permitted to modify the work for his own use as he sees fit but that any such modifications are to be considered part of the licensed work and may not be distributed to anyone except back to the Licensor . . . but since your company's money is involved you should go ask your local copyright lawyer what he thinks :-0

  • by nurb432 ( 527695 ) on Sunday February 15, 2009 @09:47AM (#26862785) Homepage Journal

    Its all free as far as i'm concerned.

  • by John Hasler ( 414242 ) on Sunday February 15, 2009 @10:20AM (#26862981) Homepage

    Something that gives the customer the freedom to modify the product as they want, but prohibits them from creating derivative works...

    "Modifying the product" is "creating derivative works". You want to grant them permission to create derivatives but not grant them permission to distribute copies of either the original or the derivatives. You may also want to require them to keep the source code confidential. I strongly suggest that you consult a copyright attorney with experience with software licensing.

  • by anthony_dipierro ( 543308 ) on Sunday February 15, 2009 @10:52AM (#26863151) Journal
    I was thinking recently that I'd like something similar to this, though I wouldn't call it a "libre" license. The idea is that anyone who purchased the software would get full source code and a license to make any changes without restriction, and they could distribute the software, with or without changes, to anyone who purchased a license. Furthermore, they could resell licenses. So if the base license cost $10, they could make changes and sell the modified software for $15, as long as they turned over $10 to me for each license they sold. Incidentally, it seems to me that such a license is sufficiently "free", and could actually be more useful than traditional free software, because it allows people who make modifications the ability to make money.
  • The kind of restrictions you are asking for, will by definition make the software non-free (in the GNU sense of the word; in other words, non-Libre, non open source).

    The goals you have in mind can be accomplished quite simply; it was being done *long* before open source became popular. Simply provide them the source code under NDA.

    Or if you want to throw a few irony logs on the fire, you could provide them the software under one of Microsoft's "shared source" licenses that we all love to mock so much, because that's essentially what you're asking to accomplish.

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