The future of open source software is being fought for by the Bitcoin Legal Defense Fund.

Saturday, May 6, 2023|

The future of open source software development is at risk because of a lawsuit brought about by a man who claims to be the creator of the virtual currency. The fund is taking on a case to defend 11 developers named in a lawsuit filed by Craig Wright, an Australian computer scientist who claims to be the father of the digital currency. The crux of the case in question dates back to 2021, when Wright, through a Seychelles-based firm called Tulip Trading, launched a so-called "letter before action" against 16 Bitcoin software developers, in an attempt to regain access to billions of dollars of Bitcoins he claims to own.

After his home network was hacked in the previous year, Wright lost access to his private keys, and it was the responsibility of the developers of the main version of the Bitcoin protocol to remedy illegitimate transactions. The case was dismissed before it made it to court. K. The case was allowed to proceed after the appeals court reversed the decision.

Lord Justice Birss pointed to academic literature that questioned the validity of public blockchains. There is much to be said for the submission that developers owe fiduciary duties to the true owners of the property if the governance of the digital currency is a myth. Block's head of litigation Martin White and Chaincode Labs co- co- co- co- co- co- co- co- co- co- co- co- co- co- co- co- co- co- co- co- co- co- co- The fund now has a chief legal officer. An open letter was written by the fund's founders to explain their purpose.

They pointed to the multi-front litigation that the community faces, including Craig Wright's efforts which they confirmed at the time it would be leading the defense for. While they noted that the main purpose of the fund was to defend developers from lawsuits regarding their activities in the Bitcoin ecosystem, they also noted that the ramifications extended far deeper into the broader open source realm. Individual defendants have chosen to capitulate in the absence of legal support, as litigation and continued threats are having their intended effect. Independent developers of open source are particularly vulnerable to legal pressure.

We propose a formal and coordinated response to help defend developers. The issue of the legal system interfering with open source software development has become a hot topic. In a letter to EU authorities last week, more than a dozen open source industry bodies said that the Cyber Resilience Act, which seeks to codify cybersecurity practices for digital products sold in Europe, may have a chilling effect on software development, as open source developers could be held personally. If the Act is to pass in its current form, developers might be less inclined to contribute to open source projects for fear of legal wrangles.

The EU's upcoming Artificial Intelligence Act, which seeks to govern artificial intelligence applications based on perceived risks, could create burdensome legal liability for open source developers working on general purpose artificial intelligence systems, and give greater power to well-financed big tech companies. While the latest episode is somewhat different, it gives rise to similar issues. The overarching story may well be about who controls or doesn't control the project, and whether the project's core developer base should be forced to create a back door to serve third-party access to private keys. bubbling under the surface is something that is fundamental to the future of software, and whether open source developers should have a fiduciary duty to their users.

We still have to oppose these lawsuits vigorously, even though we believe they are frivolous. The defendants case is based on the fact that the open source MIT License that was used to release the software is not subject to any legal responsibility by those who maintain it. In no event shall the authors or copyright holders be liable for any claim, damages or other liability, whether in an action of contract, tort or otherwise, arising from, out of or in connection with the software or the use or other dealings in the software, according to the MIT License. One of the core tenets of the MIT License that underpins countless open source projects today is at risk if a court were to rule in Tulip Trading's favor.

Morcos said that the Bitcoin Legal Defense Fund fights for the right of open-source developers to create and freely share their code with the world for the greater good. The MIT License is threatened by the Tulip Trading case. Our goal is to protect developers from legal intimidation. There are 16 defendants, but only 11 of them are represented by the Bitcoin Legal Defense Fund.

There are at least four defendants who are arranging their own counsel and a 12th who has not sought help from the fund. Wright has initiated a secondary case against other Bitcoin developer entities because he claims to be the creator of the digital currency. The case was thrown out back in February, but the defendants filed their defense last month. The two developers named in the lawsuit are supported by the Legal Defense Fund.

The outcomes of these cases are important for everyone, even those who may not be interested in Bitcoin, because these lawsuits could have serious detrimental effects on open-source development, which will negatively impact our lives in ways we may not even realize until it's too late. .