Constitutional affairs legal affairs

Workshop: Legal aspects of free and open source software 
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The precise definition of the term 'open standards' is less important than a clear expression 
of the reasons why open standards are desired in the first place. These reasons should form 
part of the requirements for any procurement. 
For procurement of software in general, it is good practice for public authorities to 
implement software based on open standards – as defined by their economic effect of 
fostering a fully competitive market
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. Supporting technologies without considering their 
degree of openness and their ability to foster a fully competitive market is harmful to 
competition and net social and economic welfare. It is thus expensive, by definition, over 
the long term. While software based on open standards may not always be available, public 
agencies should encourage its development, and indicate their preference for open 
standards to vendors though preferential procurement of software based on open standards 
wherever it is available. Similarly, public agencies should use open standards wherever 
supported by the software they implement, in preference to any other technologies 
supported by such software. 
The main advantage of open standards is the capacity to be interoperable with other 
software systems. By definition, a software application based on open standards is fully 
interoperable with any other application using the same standards, and it is possible for 
any other application to use the same standard. By consistently requiring and using open 
standards, software buyers try to achieve “vendor-independence”, which is to retain the 
ability to change software products or producers in future without loss of data or significant 
loss of functionality. This is achieved because one vendor’s software, if it is based on open 
standards, is fully compatible with other software available from other vendors; therefore, 
the customer does not get locked-in to that vendor simply because of the standards used. 
Data created with that software is still fully usable with software from another vendor. 
However, this goal is often incompatible with implicit or explicit criteria for software 
purchasing, in particular those requiring that new software should be compatible with 
previously purchased software. Buyers who use the latter criterion rather than a general 
requirement for open standards or vendor-independent interoperability in effect remain 
locked in to their previously purchased software. Thus, even if they see the benefits of open 
standards and believe in interoperability, buyers whose preference for new software is 
based on compatibility with previously installed software are not, in practice, supporting or 
benefiting from interoperability. 
2.2 
Open source software 
Open source software, Free Software, or libre software, also called FLOSS, is software that 
a user can: 

 
use for any purpose 

 
study, by examining the source code  

 
modify and improve 

 
distribute, with or without modifications 
This basic definition of FLOSS is equivalent to the Four Freedoms of the Free Software 
Foundation (FSF, which officially defines "free software") and the Open Source Definition 
maintained by the Open Source Initiative (OSI). 
Open source software is copyrighted by its authors, and is made available under copyright 
licences that provide the freedoms required by the above definition. 
Most major free software or open source licences have gone through a formal process of 
approval by the Open Source Initiative, and are listed on the OSI website; these licences 
are OSI certified and authorised to use the "Open Source Initiative Approved License" 
mark. Of course, licences that meet the terms of the Open Source Definition but have not 
been formally processed by the OSI (and thus not listed on their website) are also open 
source licences. 
                                                 
91  Ghosh, R. A. 2005. "An Economic Basis for Open Standards". FLOSSPOLS project, European Commission.  

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Policy Department C: Citizens' Rights and Constitutional Affairs 
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2.3 
Procurement principles and sustainability 
Open standards and open source software, as separately outlined above, are both relevant 
to the procurement principles described previously. When based on open standards, open 
source software supports the sustainability of government ICT processes and systems 
through: 

 
transparency and security: open source software is available along with its 
source code which can be studied and modified. This can ensure the security of 
the software, as its processes are examined in detail under widespread scrutiny 
and improved. Open source software also allows appropriate stakeholders to 
understand and monitor the functioning of government processes that are 
implemented in software - for instance, to ensure that voting systems are 
calculating results correctly.  

 
interoperability: whether implemented in open source or proprietary software, 
open standards ensure interoperability, the ability of systems from different 
vendors to function fully with each other without technical or legal obstacles. 
Open source software, in particular, provides additional support for 
interoperability, as its processes can be studied and adapted to work with other 
systems. 

 
independence: transparency and interoperability allow current and future 
vendors to work with, adapt and maintain the software, eliminating the 
dependence of purchasers or third party support and service providers on the 
vendors of the original version of the software. 

 
flexibility: open source software allows systems to be adapted and extended as 
user needs evolve. It does this without requiring that the user go back to the 
original vendor - new suppliers can be selected on a competitive basis. 
These four properties ensure the sustainability  of open source software. Sustainability 
implies lower costs over the longer term but, more importantly, reduces the users' reliance 
on the original vendors of the software. This means that selection criteria that have 
traditionally been used to ensure the sustainability  of  software  by  ensuring  the 
sustainability of the original vendors (e.g. capital, turnover or size requirements) may not 
be as important and can be reduced for the procurement of open source software. If, for 
instance, the original vendor goes bankrupt, users can lose all their investments in that 
vendor's proprietary software. However, if the software is open source, the user can find 
another vendor to support the software with no legal or technical obstacles. 
2.4 
“Off-the-shelf” or custom software? 
In the public sector, a lot of software is custom-built, or developed in-house. This is partly 
due to the fairly specific application areas typical to the public sector – for instance, police 
records management is not a domain with a large private-sector market. According to 
another EC study
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, about 10% of national public authorities in the EU had or were in a 
position to release software they owned (custom-built or developed in-house) as open 
source. 
Since such software is generally controlled by the public sector organisation using it, the 
issues related to open source and open standards are easier to address. 
For off-the-shelf software, the vendor,  not the user, controls the software. Thus, proper 
procurement procedures are particularly important in the case of off-the-shelf software, in 
order to help the procuring public agency exercise its control and choice.  
                                                 
92 European Commission DG Information Society and Media, 2008, Study on the effect on the development of the 
information society of European public bodies making their own software available as open source. Available online 
at http://www.publicsectoross.info 

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