APPENDIX D
Selected Licensing Models

Selected Licensing Alternatives and

Clearview Contract



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Licensing Geographic Data and Services APPENDIX D Selected Licensing Models Selected Licensing Alternatives and Clearview Contract

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Licensing Geographic Data and Services D.1 Selected Licensing Models Type of Restriction Description Remarks A. Restricted Users Lists Subcontractor Data limited to users working for licensee plus subcontractors, agents, and/or consultants. Common term when government acquires data under license. Some licenses require government to notify vendor before transferring data to subcontractor. Predefined user lists Data limited to users working for licensee plus specified entities. Space Imaging Multiagency License allows government to purchase 1-, 5-, and 10-agency licenses.     National Geospatial-Intelligence Agency’s (NGA’s) Clearview license permits agency to redistribute data to state, local, and foreign governments and nongovernmental organizations engaged in joint research projects. Recipients may not use images for their own purposes and are required to return data after intended use is completed. Predefined categories Data may be redistributed to predefined categories of users. Maryland’s Model Procurement License allows agencies to redistribute data to academic and educational institutions.

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Licensing Geographic Data and Services Uplift fees User may redistribute data to specified classes of individual in return for pre- agreed fee. Common term when government acquires satellite data.     U. S. Geological Survey (USGS) Draft Model Contract (Purchase of Satellite Data) would allow USGS to upgrade its license to include a wider class of users by paying a pre- agreed fee. Best efforts User undertakes to limit redistribution to maximum extent possible. NGA Clearview license obligates agency to “minimize the sharing of imagery with entities who would otherwise purchase the imagery.” B. Restricted Uses Specified project( s) Data may only be used for one or more enumerated projects. Maryland State Geographic Information System (GIS) License allows agencies to publish/ present graphics and tabular material derived from vendor data.     Space Imaging Landsat license lets users reproduce imagery in journals provided that proper acknowledgment is given.     National Oceanic and Atmospheric Administration (NOAA)/ Space Imaging Ikonos license allows agency to distribute images in “a non- manipulable

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Licensing Geographic Data and Services     (e. g. bitmap) format as part of a research report or publication.” Enumerated uses Data may only be used for specific applications. NOAA Sea-viewing Wide Field-of-view Sensor (SeaWiFS) data restrict agency to use data for “civil marine operational purposes.” County government licenses to Federal Emergency Management Agency (FEMA) require agency to use data for developing Flood Insurance Map. Disaster response Data may only be used for disaster response. FEMA routinely licenses the right to distribute data “for a limited period” following disasters. Education Data may only be used for education. USGS Policy 10-NMD001 (April 2001): “Whenever possible, agreements should allow the unrestricted use of . . . data for disaster response, research, or educational purposes. Research Data may only be used for research. USGS Policy 10-NMD001 (April 2001): “Whenever possible, agreements should allow the unrestricted use of . . . data for disaster response, research, or educational purposes. Government uses Data may only be used for government purposes. Traditional National Imagery and Mapping Agency (NIMA) satellite licenses gave agency the right to release reduced- scale images for any federal government purpose.

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Licensing Geographic Data and Services Noncommercial uses Data may only be used for noncommercial purposes. NOAA/ Space Imaging license permits agency to redistribute data “on an isolated, non- commercial basis.”     NGA Clearview license permits government to release a “limited number” of hardcopy scenes for “public information, diplomacy, emergencies, disasters, and other non- commercial uses.” C. Restricted Locations Machine Data may only be stored and accessed on specific computers and/ or terminals. Licensee is frequently permitted to make a single backup copy. — Site Data may only be stored and accessed at one geographic location. Traditional method for restricting redissemination.   U. S. Government Printing Office argues that “At a minimum, users should be able to access and download data for re- use, at no charge, in a federal depository library.”     Some state legislatures put redistricting data in special kiosks so that the public can access them.

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Licensing Geographic Data and Services Entity Data may only be stored and accessed at geographic locations belonging to a specified entity. NGA Clearview license extends to all federal agencies and other specified partners. USGS Systeme Probatoire Pour l’Observation de la Terre license contains similar provision. D. Derivative Product Restrictions Reformatting Users cannot convert vendor data to unsupplied formats. — Products for internal use Users can produce unlimited derivative products but cannot redistribute them outside licensee’s organization. NOAA/ Space Imaging license. Specified products Users can extract data to make enumerated derivative products. NOAA/ Space Imaging license. Quantity limits Users can utilize limited amounts of data to make derivative products. Maryland Model Procurement License allows agencies to share data covering areas less than or equal to a single county. Noninvertible products Users can make derivative products that cannot be inverted. Standard satellite license term.     USGS Draft Model Contract (Purchase of Satellite Data) provides that government can freely

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Licensing Geographic Data and Services     redistribute any derived product provided that “the original source image data or a reasonable facsimile thereof is not included as a file, layer, component, or other accessible and/ or viewable portion of the derived product, whether this data is separate or combined with other data and/ or information.” Value- added products Licensee can use data to create derivative products that require substantial additional effort to create. Canada’s Radarsat license allows licensee to produce value- added products that exclude significant additional interpretation and/ or data. “Value- added products” do not include mosaics, geocoding, subscenes, and various other specifically enumerated exceptions. E. Redistribution Restrictions Reduced- resolution data Users can distribute data at reduced resolution. Satellite licenses commonly let government agencies post reduced-resolution data on the Internet.     USGS Policy 01-NMD001 (April 2001): Government should “pre- negotiate defined USGS-derived products that can be generated from licensed data and placed in public domain. In a mapping context, derived products could include vectors digitized from licensed imagery, DEMs produced by thinning or generalized licensed DEM

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Licensing Geographic Data and Services     source, or degraded imagery produced from full resolution licensed source.” Embargoed data Users can distribute data after fixed period of time. National Aeronautics and Space Administration (NASA)/ Orbital Image Corp. agreement grants company exclusive right to use and sell SeaWiFS ocean color data for two weeks. Thereafter, NASA may redistribute data to scientists.     USGS Policy 01-NMD001 (April 2001): Agency may negotiate licenses that “[c] onvert licensed data to public domain data by negotiating termination dates for license restrictions. The appropriate termination date may vary depending on the specific data type.” Selected attributes data Users can extract enumerated attributes for use in building derivative products. U. S. Census Bureau/Geographic Data Technologies, Inc. (GDT) license permits agency to extract selected features and attributes from company’s DYNAMAP product to support public domain Topologically Integrated Geographic Encoding and Referencing system database.     USGS Policy 01-NMD001 (April 2001): Government should “pre- negotiate defined USGS-derived products that can be generated from licensed data and placed in public domain. In a mapping context, derived products could include vectors

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Licensing Geographic Data and Services     digitized from licensed imagery, DEMs produced by thinning or generalized licensed DEM source, or degraded imagery produced from full resolution licensed source.” Nonmanipulable data Users can distribute data in formats (e. g., paper, PDF) that cannot be manipulated. NOAA/Space Imaging license permits agency to distribute images in a “nonmanipulable (e. g. bitmap) format as part of a research report or publication.” Display-only Users can distribute data in nondownloadable form over the Internet. USGS Draft Model Contract (Purchase of Satellite Data): Agency may post source data and derived products over the Internet in formats that prevent downloading or screen capture.     Traditional NIMA License: Agency may post images on Internet “provided implementation precludes downloading or screen capture.” Logos and notices Users can distribute data provided that vendor’s identity and/or license restrictions are included. Maryland Model Procurement License: Licensee must include notice reciting license restrictions whenever product is redistributed.     NOAA/Space Imaging license: All licensed images must bear vendor’s copyright notice.     USGS Draft Model Contract (Purchase of Satellite Data): Agency may display images and distribute

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Licensing Geographic Data and Services     derivative products containing vendor’s data provided that “conspicuous copyright and license notices appear.” Data buys Licensee receives unlimited right to use and redistribute data. Functionally equivalent to nonlicense purchase agreement.     Maryland Department of Natural Resources/PIXXURES license. Agency receives perpetual unlimited license to use and redistribute orthophotography images, including Internet posting rights. F. Nonroyalty Terms Integrity Users cannot manipulate and redistribute data. Limits potential liability for postpublication alteration of data. Attribution Users who redistribute data must give proper credit to original vendor. Facilitates agencies’ ability to document value of government datasets. Enhances private- sector vendors’ ability to build name recognition and reputation.     Maryland Model Procurement License: Licensee must include notice reciting license restrictions whenever product is redistributed.

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Licensing Geographic Data and Services     Space Imaging Landsat license lets users reproduce imagery in journals provided that proper acknowledgment is given. Risk management Users agree to assume liability through liability, indemnity, and/or attorneys fee agreements. Facilitates agencies’ financial ability to distribute data at zero cost.

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Licensing Geographic Data and Services D. 2 Selected Licensing Alternatives Business Model Description Remarks Consulting/fee-for-service Vendor sells unlimited right to use and redistribute data. Traditional model. Still used by most aerial survey firms. Vendor typically retains nonexclusive right to resell data to third parties. Resale may be economically important where would- be buyers have no practical option to identify original purchaser. Update services Vendor improves quality and/ or timeliness of data at regular intervals. Many customers place a substantial premium on small quality improvements and/ or regular updates. Branding Vendor’s reputation for reliability commands a premium from consumers.   Advertising and content Vendor’s data draws users to Web site and/or is linked to advertising or other Web sites. Yahoo offers “free” geographic data to attract users to its site. Copyright only Vendor relies on copyright protection only. Traditional distribution model for paper maps.

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Licensing Geographic Data and Services     California state agencies routinely copyright seismic fault-line databases to prevent unauthorized revisions. Bundled content Vendor bundles unprotected data with copyrighted software tools Many companies bundle software with government data. Examples include Caliper, Warren Glimpse, and DeLorme. Maptech Raster Nautical Charts cannot be viewed without the company’s copyrighted software. Distribution services Vendor delivers public domain data in easy-to-locate, convenient package. Wessex and Warren Glimpse are examples of vendors who built successful businesses by redistributing agency data at lower cost and/or in more convenient formats. Market- Maker Data aggregator Assembles permissions to existing datasets in order to make and sell new products. GDT offers clients nationwide support assembled from data trades with local and county governments. Index services Vendor provides convenient, one-stop access to large amounts of data. TerraServer and Ikonos offer low- resolution image libraries to consumers free of charge. Consumers can purchase more detailed images for a fee.

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Licensing Geographic Data and Services     Environmental Systems Research Institute, Inc. hosts an online market for data products. Consumers who make purchases pay a transaction fee. USGS has discussed a similar scheme in which it would collect download fees for vendors who post data on The National Map. Transactions support Consultants assemble permissions needed to make new products by combining and modifying preexisting data sets. Harris Corp. obtains street-centerline data for U. S. Census Bureau by, inter alia, obtaining permissions from local and county governments. Technical Protections Encryption Data are encrypted to restrict distribution to particular computers and/or to prevent unauthorized manipulation and extraction. California state agencies routinely encrypt seismic fault maps to prevent unauthorized revisions. Watermarking Data contain hidden “steganographic” data that identify vendor. Allows licensor to trace and prove misappropriation of data.     Maryland Model Procurement License: Agency may insert “tracking and authentication devices” to ensure contract compliance. Licensees agree not to remove them.

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Licensing Geographic Data and Services Password protection Data can only be accessed by known users. — Download limitations Users can only obtain small portions of total dataset. —

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Licensing Geographic Data and Services D.3 CLEARVIEW CONTRACT1 D.3.1 Background In January 2003, NIMA (now NGA) signed a nonexclusive licensing agreement with U.S. satellite companies Digital Globe, Space Imaging, and ORBIMAGE to procure high-resolution imagery. The contract has a $500 million ceiling for each company over its five-year life span. Using NGA’s bargaining power, Clearview negotiators aimed to replace multiple government licenses with a single license, and promote stability in the U.S. commercial satellite industry. D.3.2 Types of Imagery Clearview covers Panchromatic (black and white), multispectral (color), and “other remotely sensed data.” The contract also contains options for value-added imagery processing, external purchases, and direct downlink purchases. Space Imaging’s Ikonos, launched in 1999, and ORBIMAGE’s OrbView3, launched in 2003, have 1-meter panchromatic and 4-meter multispectral options.2 DigitalGlobe’s Quickbird camera captures 0.61-meter panchromatic and 2.44-meter multispectral imagery. D.3.3 Who Can Use the Data? Clearview affords unrestricted access to the data by the U.S. government (all branches, departments, agencies, offices, and contractors therewith). Additionally, state and local governments, foreign governments, intergovernmental organizations, nongovernmental organizations, and other nonprofit organizations have unrestricted access when working with the U.S. government on “joint projects.” Such projects are defined as coalition force operations, relief efforts, homeland security operations, exercises, and co-production. Activities including city planning, property 1   This section is based on testimony of Karl Tammaro, NGA. 2   See <http://www.spaceimaging.com>; <http://www.orbimage.com/news/releases/06-26-03.html>.

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Licensing Geographic Data and Services tax assessment, transportation infrastructure management, and “general purpose mapping” are not considered “joint projects,” and are excluded. D.3.4 Distribution Restrictions Imagery cannot be placed on an electronic distribution system that permits access by unlicensed users. Additionally, derived products containing imagery data inherit the copyright and license restrictions of the source data. D.3.5 Public Availability Reduced-resolution data with 16-meter ground resolution or coarser retain copyright markings, but have no restrictions on use or distribution. During emergencies, disasters, or for diplomacy or public information, a “limited” number of hardcopy imagery scenes or softcopy samples may be released by a licensed user. However, commercial uses, resale, or mass public distribution are not permitted. Hard and soft copies of imagery (with the copyright mark) may be shown but not given to unlicensed users. D.3.6 Data Archiving Partners in joint projects with the U.S. government cannot retain the data after completion of the project. The data are archived at NGA. D.3.7 Benefits Industry has a five-year contract with minimum guarantees ($120 million to Space Imaging and $72 million to Digital Globe) over the first 3 years, and two 1-year renewal options. The U.S. government acquires the data at lower cost,3 and fewer resources were expended on contract negotiations by both sides, when compared with negotiating multiple licenses. 3   The bulk purchase afforded a 75 percent price break (Gene Colabatistto, Space Imaging, personal communication, December 2003).

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Licensing Geographic Data and Services D.3.8 Limitations Public access to original imagery is prohibited. Partners on joint projects may not retain data for non-security-related business operations; if the data are needed, they must be purchased under a separate license. D.3.9 Civil Agencies and Commercial Satellite Companies The 2003 White House Directive on Commercial Remote-sensing Policy instructs civil agencies to first consider U.S. satellite companies when weighing options for imagery purchases. Clearview or a “Clearview-like” contract is being advocated by industry (Gil Klinger, speaking at NASA headquarters on June 26, 2003) to simplify their contract negotiations with civil agencies. Unlike the military sector, however, the civil sector has no single mapping agency through which to focus purchasing. At the time of writing, discussions were being coordinated among USGS, NASA, and NOAA, and led by USGS. D.3.10 Nextview A $500 million award was made by NGA to DigitalGlobe in October 2003 under the “Nextview” contract.4 4   See <http://www.nima.mil/ast/fm/acq/093003.pdf>.