The US Internal Revenue Service has ushered in a new and much more favorable treatment for free software projects seeking to have 501c3 tax exempt non-profit organizations of their own. After years of suffering from a specially prejudicial environment at IRS, free software projects—particularly new projects starting out and seeking organizational identity and the ability to solicit and receive tax-deductible contributions for the first time—can now do so much more easily, and with confident expectation of fast, favorable review. For lawyers and others counseling free software projects, this is without question “game-changing.”
We’ve been watching with great interest this week as the travails of FOSS organizations with the US Internal Revenue Service have become a hot topic. When our client, Jim Nelson of Yorba, discussed blogging about the IRS rejection of Yorba’s application for 501c3 status with us, we hoped but did not expect that the situation, to which we had discreetly called community and company attention for years, would finally receive some. We’re very glad that’s now happening. Unfortunately, it’s really too late. Because of the long delays in determination imposed by the IRS in its increasingly anti-FOSS positioning, neither the full consequences of the IRS’s present position nor the state of our legal technology in response can be seen from the materials currently under discussion.
Twin Peaks Software, Inc., which makes proprietary data replication and cloud storage software, sued Red Hat and its subsidiary Gluster for patent infringement back in February. Last week, Red Hat filed a counterclaim in that litigation, alleging copyright infringement by Twin Peaks in misappropriating GPL’d software. Today SFLC begins an investigation of Twin Peaks’ products, to ascertain whether any of our clients’ rights are being infringed through the violation of FOSS licenses.
Last week, to the surprise of patent lawyers and the biotechnology industry, advocates for technological freedom won an enormous victory against socially harmful distortions of patent law. The Federal District Court for the Southern District of New York held invalid patents owned by Myriad Genetics on diagnostic testing for genetic susceptibility to the most common hereditary forms of breast and ovarian cancer. By “patenting” the right to determine whether the BRCA1 and BRCA2 genes are present in the relevant mutated form in a women’s genome, Myriad Genetics has been able to exclude all other laboratories from conducting the test. Patients and their insurers have paid much more, and women and their families have waited crucial weeks longer than necessary for information relevant to treatment and potentially affecting survival.
A (belated) blog post about the future of free software; making the movement more inclusive; and the Libre Planet Conference in Boston on May 19-21.