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# System prepended metadata

title: Open Source Funding License (OSFL)

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# Open Source Funding License (OSFL)
**Version 1.0 - DRAFT**

Authors: DeepGov

## Preamble

This license allows you to use, modify, and distribute this software under two alternative paths:

1. **Community Path**: Use under AGPL v3 terms (copyleft, source disclosure)
2. **Commercial Path**: Use under MIT License terms with 1% revenue sharing obligation on revenue from products/services, distributed via credibly neutral mechanism among all OSFL-licensed dependencies

## Terms and Conditions

### Section 1: Definitions

- **"This License"** refers to this Open Source Funding License
- **"Program"** refers to the software licensed under this license
- **"Revenue"** means gross revenue directly attributable to products or services that incorporate the Program or derivative works of the Program
- **"Dependencies"** means other software components that the Program depends upon that are also licensed under OSFL
- **"Dependency Chain"** means the complete set of OSFL-licensed dependencies used by your implementation
- **"Credibly Neutral Mechanism"** means an objective, algorithmic method for allocating resources that cannot be easily manipulated or gamed by any party, treats all participants fairly according to predetermined criteria, and produces deterministic outcomes. For a list of credibly neutral funding mechanisms, see deepgov.org/osfl

### Section 2: License Grant Options

You may use the Program under **either** of the following options:

#### Option A: Community License
You may use, modify, and distribute the Program under the terms of the GNU Affero General Public License version 3, with all its copyleft requirements including:
- Source code disclosure for network-accessible services
- Derivative works must be licensed under compatible terms
- No additional restrictions on user freedoms

#### Option B: Commercial License
You may use, modify, and distribute the Program under the terms of the MIT License, subject to the following revenue sharing obligation:

**Revenue Share Requirement**: You must pay **1% of Revenue** from products or services that incorporate this Program or derivative works quarterly, distributed via credibly neutral mechanism among all OSFL-licensed dependencies in your direct dependencies according to the distribution formula in Section 3.

**MIT License Terms Apply**: Under this option, you receive all the permissions granted by the MIT License, including the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Program without the copyleft restrictions of Option A.

### Section 3: Open Source Funding to OSFL Dependencies

For the 1% revenue share payment:

**Credibly Neutral Distribution**: The 1% is distributed via credibly neutral mechanism among all OSFL-licensed dependencies in your dependency chain, including this Program.

**Approved Mechanisms**: Credibly neutral funding mechanisms are available. An approved list can be found at deepgov.org/osfl.

**Dependency Scope**: Include all OSFL-licensed software components that your product directly or transitively depends upon. Non-OSFL licensed dependencies do not participate in revenue sharing.

If there are no other OSFL-licensed dependencies, the full 1% goes to this Program's copyright holders.

### Section 4: Open Source Funding Mechanics

#### Payment Obligations
- Payments due quarterly within 30 days of quarter end
- Minimum payment threshold: $1,000 quarterly revenue from products/services incorporating OSFL-licensed software
- Self-reported revenue with annual third-party audit if such revenue exceeds $1M annually

#### Payment Distribution
- Payments made to registered addresses provided by copyright holders of each OSFL dependency
- If payment to any copyright holder cannot be delivered, those funds held in escrow for 2 years
- Unclaimed funds donated to Free Software Foundation

### Section 5: License Selection and Transition

- You must choose Option A or Option B for your entire use of the Program
- You may transition from Option A to Option B at any time by beginning revenue share payments
- You may transition from Option B to Option A by ceasing commercial use and complying with AGPL terms
- Mixed usage (some deployments under Option A, others under Option B) is not permitted

### Section 6: Compliance and Enforcement

- Failure to make required payments automatically terminates Option B rights
- Upon termination, you must either:
  - Cease all use of the Program, or
  - Transition to Option A compliance within 90 days
- Copyright holders may audit revenue calculations for products/services incorporating OSFL-licensed software with 30 days notice

### Section 7: Disclaimer and Limitation of Liability

THE PROGRAM IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND. IN NO EVENT SHALL COPYRIGHT HOLDERS BE LIABLE FOR ANY DAMAGES ARISING FROM USE OF THE PROGRAM.

### Section 8: Compatibility

- Option A use is compatible with AGPL v3 licensed software
- Option B use places no additional licensing restrictions on your proprietary code
- This license may be applied to derivatives of AGPL v3 software by copyright holders

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## How to Apply This License

Include the following notice in your source files:

```
Copyright (C) [year] [name]

This software is licensed under the Open Source Funding License (OSFL) v1.0.
You may use this software under either:
- AGPL v3 terms (copyleft), or  
- MIT License terms (1% revenue share distributed via credibly neutral mechanism among all OSFL-licensed dependencies)

See LICENSE file for full terms.
Revenue share payments: [payment address/contact]
```

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**DISCLAIMER**: This is a conceptual draft license and has not been reviewed by legal experts. Do not use in production without proper legal review and consideration of enforceability, tax implications, and compatibility with your jurisdiction's laws.