The Rails Wheels licencing system and Open Source

[Mark Reginald James]

Hello,

I recently launched a website that allows developers of
Ruby on Rails websites to purchase licences to use certain
software packages on their sites.

The licences give package users access to support ticketing,
and allow package developers to earn part of their living
from their software components, rather than just their sites,
improving the availability and quality of such packages.

I'd appreciate some help assessing the compatibility of
the Rails Wheels licencing system with the OSI definition
of Open Source. Here are the main features of licencing on
Rails Wheels:

- All packages must have exposed source.
- All packages are free of charge until used on a live website.
- Charges for live use vary according to the type and size of
   the site's owners. Some sites may be able to use the software
   free-of-charge, while payment may be optional for others.
- Copyright in, and control of, each package rests with an
   administrating group of users.
- Each package is owned by a list of registered contributors,
   as set by package administrators, who share in the package's
   revenue.
- Packages can be freely redistributed in terms of the letter,
   though perhaps not the spirit, of the OSI definition. That is,
   a package may be modified, repackaged, and on-sold for no fee,
   but those receiving the software must be informed of the
   requirement to check whether they can or must purchase a licence
   if the software is later used on a live website.
- Negotiation with package administrators is required to remove
   or alter this licence check requirement. This may simply require
   that the new package list the original package as a contributor
   at an agreed level.

This is more formally stated here:
http://railswheels.com/site/licence_text/SAMPLE_PACKAGE_LICENCE.txt

The aim is a permissive redistribution system that allows
authors to be compensated for use of their software, rather
than just for trouble with its use.

In what ways are packages licenced under the Rails Wheels system
not Open Source Software?  Can the licence be altered so that
they are?

Thank you.

Mark