License Zero as Dual License Solution for Fair Funding of Open Source Development

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Discussion

Daniel Chrichton:

"While Patreon is one direct approach for generating revenues from users, another one is to offer dual licenses, one free and one commercial. That’s the model of License Zero, which Kyle Mitchell propsosed last year. He explained to me that “License Zero is the answer to a really simple question with no simple answers: how do we make open source business models open to individuals?”

Mitchell is a rare breed: a lifelong coder who decided to go to law school. Growing up, he wanted to use software he found on the web, but “if it wasn’t free, I couldn’t download it as a kid,” he said. “That led me into some of the intellectual property issues that paved a dark road to the law.”

License Zero is a permissive license based on the two-clause BSD license, but adds terms requiring commercial users to pay for a commercial license after 90 days, allowing companies to try a project before purchasing it. If other licenses aren’t available for purchase (say, because a maintainer is no longer involved), then the language is no longer enforceable and the software is offered as fully open source. The idea is that other open source users can always use the software for free, but for-profit uses would require a payment.

Mitchell believes that this is the right approach for individuals looking to sustain their efforts in open source. “The most important thing is the time budget – a lot of open source companies or people who have an open source project get their money from services,” he said. The problem is that services are exclusive to a company, and take time away from making a project as good as it can be. “When moneymaking time is not time spent on open source, then it competes with open source,” he said.

License Zero is certainly a cultural leap away from the notion that open source should be free in cost to all users. Mitchell notes though that “companies pay for software all the time, and they sometimes pay even when they could get it for free.” Companies care about proper licensing, and that becomes the leverage to gain revenue while still maintaining the openness and spirit of open source software. It also doesn’t force open source maintainers to take away critical functionality — say a management dashboard or scaling features — to force a sale.

Changing the license of existing projects can be challenging, so the model would probably best be used by new projects. Nonetheless, it offers a potential complement or substitute to Patreon and other subscription platforms for individual open source contributors to find sustainable ways to engage in the community full-time while still putting a roof over their heads." (https://techcrunch.com/2018/06/23/open-source-sustainability/?)