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Open Sources | Rodrigues & Urlocker » Why you need a lawyer on staff

January 09, 2007 | Comments: (0)

Why you need a lawyer on staff

While I'm on the subject of hiring, whether open source or not (but especially if you are), you really need to hire a JD. A lawyer, that is.

Now, before you call me a killjoy (because, after all, who wants to hang out with lawyers? :-), let me explain.

First off, you need to understand that there is a huge difference in attorneys. Some exist to kill good ideas. Others, however, are fantastic assets to a business. They are "business lawyers" and in the open source world you absolutely need one of these. Because software - and, in particular, open source - is essentially an exercise in licensing, it's important that open source companies have an attorney on staff. Not necessarily a senior IP attorney, but someone that can grok a contract and write one.

Here's what you'll get:

  1. The ability to use licensing as a tool/competitive weapon, rather than merely as the ugly stepchild to the "real business" of software. (Savvy open source vendors can quasi-control their competitors by the code they release if they use the right license.)

  2. You'll save a boatload in legal fees. Just by having me on staff (and I am not a "senior IP attorney" (I worked full-time through most of law school, and was generally working during class, so I only trust myself so far...)), Alfresco saves $5,000+ in legal fees. Don't believe me? Ask any software company what they spend on outside legal counsel. I think you'll find that bringing a JD in-house is very, very cheap, whatever their salary.

    (This is not to say that you shouldn't retain outside counsel. You absolutely should. The best open source attorneys will help you think about legal issues in innovative, constructive ways. You just shouldn't spend your entire Series B round with them.)

  3. One less person out there that will sue you. :-)

To succeed well in software, you need to be smart about licensing. Just ask Oracle, Microsoft, etc. These are companies that understand licensing cold. To compete with them, as well as to ensure your licensing appeals to and serves the interests of customers, you really need to get an open source savvy attorney on board. The good news is that the law schools are minting these at a nice clip. Save them from firm life. Hire a JD.

(Take my brother while you're at it. He's just finishing up at Stanford Law School and has been thoroughly corrupted with open source by his older brother. :-)

Posted by Matt Asay on January 9, 2007 09:18 AM


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I couldn't agree more--not hiring a lawyer upfront when we started the Mule ordeal was one of my biggest learning experiences. Don't forget that your brother did license research for us :>

Posted by: Dave Rosenberg at January 9, 2007 11:06 AM

There was a relevent post in Groklaw the other day. It mentioned a free/open course where GPL is part of the syllabus. Something's definitely happening...

Posted by: Roy Schestowitz at January 9, 2007 12:56 PM

prevention is far, far better than any 'cure'.

an in-house lawyer can be the best translator you'll ever have - a legal beagle who understands your business, and what you are trying to do ... who can talk to other lawyers in legalspeak.

you may even discover they have a few ideas of their own, once they get comfortable.

like any other hire, you need to put some thought into what kind of person you want/need. some law graduates are quick learners, and flexible thinkers (it's how they survived law school). you just have to pick'em :)

a staff lawyer is just as much an investment in business development as your accountant/s and marketing.

Posted by: maelorin at January 11, 2007 03:59 AM

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