New scares loom over open source license lawsuits

By Jacqueline Emigh | Published April 29, 2009, 4:38 PM

Within the short "tradition" of open source lawsuits, users have typically needed to worry their heads only about breach of contract concerns. But last summer, in a case called Jacobsen v. Katzer, the US Court of Appeals for the Federal Circuit opened up copyright claims as a new route for people looking for financial damages.

Open source developer Robert Jacobsen sued Matthew Katzer and Kamind Associates, producers of commercial software used with model trains, alleging that Katzer and his company violated copyrights around the Java Model Railroad Interface (JMRI), an open source software project licensed under what's called the Artistic License.

In a separate action, the open source group known as The Free Software Foundation (FSF) has now filed suit against Cisco, charging that Cisco is infringing various copyrights licensed under two other types of licenses: the General Public License and Lesser General Public License.

Some have hailed last August's ruling in Jacobsen v. Katzer as a victory in terms of protecting the intellectual property rights of open source developers. On the other hand, with new legal precedent now set, users of open source -- including both corporate and commercial developers incorporating open source code into their software -- now need to exercise extra caution to avoid getting hauled into court, according to Jonathan Moskin and Howard Wettan, two attorneys at White & Case LLP.

Although leaving some questions still unanswered, last summer's court decision "held that breach of an open-source license does not merely permit a breach of contract claim, but that violating the 'conditions' to the intellectual property license creates a cause of action for copyright infringement -- with associated [financial] remedies," the two lawyers wrote, in a recent article in The Intellectual Property Strategist, a legal newsletter.

During an interview with Betanews, Moskin contended that after the article with Wettan was published, he was accused by one tech publication of "being some sort of a shill" for Microsoft. "But nothing was further from my mind," Betanews was told. Moskin said that instead, he'd simply wanted to warn users and their own lawyers about some new legal risks stemming from open source code.

White & Case LLP, the firm where Moskin works, has represented Microsoft in anti-trust actions before the European Union. The tech publication that made the accusation against Moskin has since apologized, according to Moskin.

"I'd just like to put out a call to developers that they need to be more careful in how they compile code," he told Betanews.

Specifically, the US Copyright Act provides for statutory damages of between $750 and $150,000 "for willful misconduct" per infringed work, Moskin and Wettan wrote in their article.

"An additional consequence of the Federal Circuit's opinion is that, by pursuing copyright claims, an open source licensor may now be able to sue downstream licensees for copyright infringement."

During the interview with Betanews, Moskin offered the example of a bank hiring a software developer to write a piece of billing software for use by its customers.

"Let's say the developer downloads a piece of open source software. The bank thinks its code is proprietary, but it actually incorporates open source. Other businesses [using the billing software] might then also be liable for copyright infringement," Moskin illustrated.

After last summer's ruling in Jacobsen v. Katzer, the case was remanded back to District Court in California. As part of a decision issued by the District Court in January, Jacobsen was denied a preliminary injunction against Katzer due to a lack of evidence showing actual harm "suffered or immiment" due to any copyright infringement. Yet that ruling does not prevent the District Court from issuing an injunction after hearing the merits of the case, according to court documents.

Meanwhile, in its case against Cisco, the FSF is demanding not just actual or statutory damages, but also the return of any profits made by Cisco due to Cisco's alleged copyright violations.

Comments

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About time that code was treated as a physical good (like electronic components). Every product should have a Bill Of Materials, saying where it came from, who the "manufacturer" was, what price, what license or contract. People have been getting away with plagiarizing code (taking without consent of the owner). It is easy to know what the license obligations are (educate your developers, keep track or automate it. Tere are tools out there that don't cost much- Protecode or others- and do the job for you), and you wouldn't have an excuse. At the end, there should be no excuse for using someone else's property without having their consent.

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Oh yeah...

Effectively copyrighting lines of code. And we can copyright sentences and prevent reuse.

That's workable!

LOL!

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Based on what I've seen, Moskin may not be a "Microsoft Shill", however he does have a monetary interest in Microsoft. Under the circumstances, he either should not have written anything, or should have prominently declared this at the start of the article.

As to his conclusions, how do I say this politely? The man is an idiot. Jaconsen vs Katzer was a clear case of IP theft. Is he trying to say that Katzer should not be made to pay for that theft? If someone stole source code from his client Microsoft, should that person/company not have to pay Microsoft?

As to a contract programmer using code that he/she shouldn't, well that's why you get your contract programmer to sign a CONTRACT.

Sheesh.

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Every article on betanews has dozens of comments by the same two morons who endlessly *LOL*, ;-), LMAO!!!!!, *shakes head*, ;-)) *laughs*, and otherwise relieve themselves in public. Betanews is really lucky to have not one but two hyperactive and dedicated village idiots.

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One of the resident idiots did not waste any time to claim his rightful place.

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This is no different than with commercial software. It is FUD to act like this is a risk that exists with open source that is not the same risk in commercial software. If developer A writes commercial code which is stolen by developer B who sells it, the purchasers in theory could be responsible to pay developer A damages, just the same if the stolen code is open source or not. If you "buy" a pirated Photoshop program unknowingly from a spam email, you could be responsible for copyright infringement even though you weren't the first copier. In theory, all this could happen, but in practice copyright is not enforced this way. Suing anyone other than the original thief is very rare. However, patent lawsuits do exist against downstream users, like when many companies were sued for MP3 use even though they had already paid for it.

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So, let me get this straight: An open souce dev can sue a dev who "stole" the open source code and called it his own. If that dev sold his product (and wrote it specifically for) another company, the open source dev can also sue that company for copyright infringement, even if that company did not know it's developer stole code.

So then the developer who stole the open source code could potentially get sued by the company who is getting sued by the open source developer.

Nice.

I see a lot of money changing hands here and the lawyers are getting all. I should have gone to law school.

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Why should a business who, as far as they knew, bought a legitimite product from a reputable company, come to find out that product was actually stolen AND get sued by the actual owner of the product? WTF?! It sure wasn't willful infringement on that business's part! If anything the business that unknowingly bought the stolen product should turn around and sue the seller!

It's bad enough that the business will now need to plunk down more money to purchase a replacement for that product. Wouldn't it be wiser for the original owner to contact that business that got ripped off and work out some deal to use it legitimately?

too bad common sense is so easily lost in the breeze nowadays...

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double post

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> So some fool steals your car and then sells it...

In case when there is something of value to recover (physical object like a car) you certainly have a point. But in the case discussed here there is nothing of value to recover. There might be "loss of potential income", but wouldn't you agree that it is at least debatable whether such damages should be successfully claimed against someone who did the reasonable due diligence and to the best of his knowledge did not participate in any violations?

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