rote Licensing Strategy

Date: January 16, 2026 Status: Implemented

Overview

rote uses a dual licensing model to balance openness with business protection:

1. Core Software: Business Source License 1.1 (BSL 1.1)
2. Community Content: Apache License 2.0

Core Software: Business Source License 1.1

What It Covers

• rote CLI binary
• rote source code
• Core functionality
• Pro/Enterprise features

What Users Can Do

Permitted:

• Use rote for personal projects
• Use rote for commercial projects
• Use rote internally within organizations
• Modify and redistribute (with same license)
• Create adapters and skills
• Distribute adapters and skills

Prohibited:

• Operate rote as a hosted service for third parties
• Offer "rote as a service" (SaaS)
• Cloud marketplace offerings (AWS, Azure, GCP)
• Managed service offerings
• Any commercial service where third parties access rote remotely

Change Date

4 years from each release, the software converts to Apache License 2.0.

Example:

• Version 0.13.0 released January 2026
• Converts to Apache 2.0 in January 2030
• Version 0.14.0 released June 2026
• Converts to Apache 2.0 in June 2030

Commercial Hosting License

Organizations wanting to offer rote as a hosted service must obtain a commercial license.

Contact: [email protected]

Pricing: Custom (based on scale, support needs)

Community Content: Apache License 2.0

What It Covers

• Adapters created by community
• Skills created by community
• Flows shared in registry
• Community contributions

Author Rights and Responsibilities

Authors retain:

• Full copyright ownership
• Right to license under any terms
• Control over their content

Authors accept:

• Full responsibility for their content
• Liability for any issues arising from their content
• Obligation to warrant they have rights to distribute
• Duty to indemnify Modiqo from claims related to their content

Modiqo's Role

Modiqo provides:

• Platform for distribution
• Registry infrastructure
• Discovery and search

Modiqo does NOT:

• Create community content
• Endorse or verify community content
• Support community content
• Accept liability for community content
• Warrant community content quality or safety

Protection Against Cloud Providers

The Problem

Without protection, cloud providers could:

• Take rote source code
• Offer "rote as a service" on AWS/Azure/GCP
• Compete with Modiqo using Modiqo's own software
• Capture all commercial value

The Solution: BSL 1.1

Hosted Service Prohibition:

The BSL 1.1 explicitly prohibits operating rote as a hosted service:

01A "Hosted Service" is a commercial offering that allows third parties 02to access the functionality of the Licensed Work by creating an account 03and interacting with the Licensed Work remotely through a network.

What this blocks:

• AWS offering "rote on AWS Marketplace"
• Azure offering "Managed rote Service"
• GCP offering "rote Cloud"
• Competitors offering "rote hosting"
• SaaS wrappers around rote

What this allows:

• Companies using rote internally
• Consultants using rote for clients
• System integrators building on rote
• Enterprises deploying rote on-premise

Enforcement

If a cloud provider violates:

1. License violation (breach of BSL 1.1)
2. Cease and desist letter
3. Legal action for damages
4. Injunction to stop service

Precedent: HashiCorp successfully enforced BSL against cloud providers.

Liability Protection

For Core Software

Modiqo's liability is limited by:

1. BSL 1.1 Disclaimer:

`` THE LICENSED WORK IS PROVIDED ON AN "AS IS" BASIS. LICENSOR DISCLAIMS ALL WARRANTIES AND CONDITIONS. ``

1. Terms of Service Section 8:

• No warranties of any kind
• Limitation of liability
• Exclusion of consequential damages

1. MSA Article 10:

• Liability capped at fees paid
• Exclusion of indirect damages
• Allocation of risk

For Community Content

Modiqo is protected by:

1. Clear separation:

• Community content licensed separately (Apache 2.0)
• Authors retain copyright and responsibility
• Modiqo is platform provider, not content creator

1. Explicit disclaimers:

• Terms of Service Section 5.3
• MSA Article 11.5
• LICENSE.COMMUNITY appendix
• NOTICE file warnings

1. Author obligations:

• Authors warrant they have rights
• Authors accept full liability
• Authors indemnify Modiqo
• Authors responsible for distribution

1. User acknowledgment:

• Users accept content "AS IS"
• Users responsible for testing
• Users accept risk
• No warranty from Modiqo

Safe Harbor Provisions

Modiqo qualifies for safe harbor under:

1. DMCA Section 512(c): Service provider safe harbor

• Modiqo hosts user content
• Responds to takedown notices
• Has designated agent
• No actual knowledge of infringement

1. Section 230 CDA: Platform immunity

• Modiqo is platform, not publisher
• Not liable for user-generated content
• Can moderate without losing protection

Comparison with Competitors

Terraform (HashiCorp)

• License: BSL 1.1 (changed from MPL in 2023)
• Reason: Prevent cloud providers from offering Terraform Cloud competitors
• Result: Successfully blocked AWS from hosting
• Conversion: Apache 2.0 after 4 years

Elastic

• License: Elastic License 2.0 (similar to BSL)
• Reason: Prevent AWS from offering Elasticsearch as a service
• Result: AWS created OpenSearch fork
• Outcome: Elastic maintains commercial control

Our Strategy

• Follow proven model: BSL 1.1 like HashiCorp
• Clear restrictions: No hosted services
• Fair use: Internal use allowed
• Time-limited: Converts to open source
• Community-friendly: Adapters fully open

Business Model Alignment

Revenue Streams Protected

1. Enterprise licenses: Custom deployments, support
2. Pro subscriptions: Advanced features
3. Hosting rights: Commercial license for cloud providers
4. Professional services: Implementation, training

Revenue Streams Open

1. Adapter creation: Free, encourages ecosystem
2. Skill creation: Free, builds community
3. Flow sharing: Free, increases value
4. Community contributions: Free, improves product

Why This Works

• Free tier: Drives adoption
• BSL protection: Prevents value capture by cloud providers
• Open community: Builds ecosystem
• Commercial upsell: Enterprise needs pay
• Time limit: Eventually open source (builds trust)

Implementation Checklist

• [x] LICENSE updated to BSL 1.1
• [x] LICENSE.COMMUNITY created (Apache 2.0)
• [x] NOTICE file created
• [x] Terms of Service updated
• [x] Master Service Agreement updated
• [x] Cargo.toml license field updated
• [ ] README.md updated with licensing info
• [ ] GitHub repository description updated
• [ ] Website updated with licensing info
• [ ] Legal review (recommended)

Recommendations

Immediate Actions

1. Commit licensing changes
2. Update README with licensing section
3. Add licensing info to website
4. Notify existing users of license change

Legal Review

Recommended: Have attorney review:

• BSL 1.1 parameters (especially "Hosted Service" definition)
• Terms of Service community content sections
• MSA indemnification clauses
• Safe harbor compliance

Cost: $2,000-5,000 for licensing review

Ongoing

1. Monitor for violations: Watch for unauthorized hosting
2. Enforce when needed: Cease and desist letters
3. Offer commercial licenses: Revenue opportunity
4. Track conversion dates: Plan for Apache 2.0 conversion

Summary

Core Protection: BSL 1.1 prevents cloud providers from hosting rote

Community Freedom: Apache 2.0 for adapters/skills encourages ecosystem

Liability Shield: Clear separation and disclaimers protect Modiqo

Business Model: Free use drives adoption, commercial licenses for hosting

Time-Limited: Converts to Apache 2.0 after 4 years (builds trust)

Proven Strategy: Same model as HashiCorp Terraform (successful)

This licensing strategy protects your business while building community.