The Free-Rider Problem

The Free- Rider Problem

The second question posed above is actually the easier one. Under Open Source Principles # 2 and 3, it is impossible to completely prevent free-riders in open source. All licensees are free to copy and create derivative works without payment of royalties to the licensor, and so a licensee can make as many copies of such software as possible without rewarding the licensor with even a peppercorn as payment.

If it is important to discourage free-riders who create and distribute derivative works, then a reciprocal license is often more effective than an academic license. At least with reciprocal licenses, everyone is a free-rider of everyone else's distributed derivative works, because that software is licensed under the same license. The pain of the free-rider problem is equally shared by all distributors of derivative works, not just by the original licensor, under reciprocal licenses.

But whether a licensor chooses to distribute under an academic or a reciprocal license, the growing commons of open source software that generally results from open source licensing is believed by most in the open source community to be sufficient reward for allowing everyone to be free-riders.

If after considering open source models you still want to prevent free-riders, you should consider adopting one of the non “open source licenses described in Chapter 11, or try instead to make money with a proprietary software distribution model.