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Thread: Patent Liability Insurance




Patent Liability Insurance
user name
2007-05-16 12:13:28
I see my original posting has generated quite a bit of
interesting 
discussion. 

 From our perspective, we have to look at the big picture
and find an 
acceptable balance between the potential risks and rewards
of running an 
open-source project.  The risk of finding ourselves on the
receiving end 
of a patent infringement lawsuit is one risk we have to
consider in the 
overall picture.  We have to weigh the likelihood of finding
ourselves 
in that situation and the costs involved if we ever do.

Pretty much everything in our project can be shown to build
upon 
well-known prior art that can be readily found in computer
science 
textbooks.  So to the best of our knowledge, we think the
chances we may 
have inadvertently infringed a valid software patent are
low, even 
though we have not undertaken the cost of a patent search or
attempted 
to do it ourselves.  Also, since there is not much money
that could be 
recovered by successfully suing us, we don't think we are a
particularly 
attractive target for a such a lawsuit.[1]  Through separate

incorporation and/or using a software conservancy, we should
at least be 
able to shield ourselves from personal liability.  The
conservancy has 
the added bonus of giving us access to well-respected
attorneys who 
might come to our rescue should we ever need them. 

I don't know that it is ever possible to eliminate all risk
in life -- 
we all die of something eventually.  There is risk involved
in simply 
getting out of bed, but if you never get out of bed it would
be 
difficult or impossible to experience the rewards of living.
 So it all 
has to be taken in perspective.  Most of us drive
automobiles because we 
need the mobility, but we still wear seat belts, try to
drive prudently, 
and purchase insurance as needed or legally required.  We
hope that the 
potential rewards of involvement in open-source still
outweigh the risks 
in today's competitive and legal environment.

It should be possible to identify prudent best practices for

organizations that run open-source projects which is my main
reason for 
posting questions to this list.  We have already found at
least one:  
Contributor License Agreements.  I'm sure there are others.

Thanks,

Bruce Alspaugh, CTO
CompuLink, Ltd
409 Vandiver Drive #4-200
Columbia, MO 65202-1565

[1] I'm reminded of the advice that if you live in a ghetto
it's a good 
idea to drive an old rusted-out car with no hubcaps if you
don't want it 
to be stolen.  I think it could be argued that today's
software patent 
environment amounts to a "legal ghetto."




Re: Patent Liability Insurance
user name
2007-05-16 19:05:16
Bruce Alspaugh wrote:
> I see my original posting has generated quite a bit of
interesting
> discussion.
> From our perspective, we have to look at the big
picture and find an
> acceptable balance between the potential risks and
rewards of running an
> open-source project.  The risk of finding ourselves on
the receiving end
> of a patent infringement lawsuit is one risk we have to
consider in the
> overall picture.

This isn't a risk of releasing an open source program, but
rather a risk
in releasing any product.  It's true that it's easier to
find patent
violations in an open source program, but source code is not
necessary
to prove infringement.

> The conservancy has the added bonus of giving us access
to
well-respected attorneys who
> might come to our rescue should we ever need them.

This is a valid point, and access to the conservancy is in
fact an
advantage to making the program free/open source software.

Matt Flaschen

[1-2]

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