Restrictive Open Source License Template for Switzerland

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What is a Restrictive Open Source License?

This Restrictive Open Source License is designed for organizations and individuals who wish to make their software source code available while maintaining substantial control over its use and distribution. It is particularly relevant when the software contains valuable intellectual property or when the licensor wants to prevent certain types of commercial exploitation while still benefiting from community involvement. The license, governed by Swiss law, combines elements of traditional open source licensing with specific restrictions that protect the licensor's interests. It includes detailed provisions on permitted uses, modification rights, distribution requirements, and commercial use limitations. This document type is especially suitable for Swiss-based organizations or international entities choosing Swiss law for its strong intellectual property protections and well-developed commercial law framework. The Restrictive Open Source License should be used when standard permissive open source licenses are too liberal and proprietary licenses too restrictive for the licensor's objectives.

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Swetha Meenal

Legal Engineer, GenieAI

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A lawyer, legal researcher and legal tech founder, Swetha has built AI products deployed inside Tier 1 firms and enterprises. She ensures GenieAI's alignment with the latest regulation and executes testing on the legal robustness of Genie output.

Reviewed by

Imad Mohammed Nazar

Legal Engineer, GenieAI

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A Skadden-trained M&A lawyer, Imad advised on cross-border transactions and contractual risk before moving into legal AI. He reviews GenieAI's output for compliance and enforceability across our 150+ supported jurisdictions, as well as facilitating external benchmarking.

Jurisdiction

Switzerland

Publisher

GenieAI

Sector

Business

Cost

Free to use

Last updated

About the Restrictive Open Source License

A Restrictive Open Source License allows you to share your software's source code with the community while maintaining significant control over how it's used, modified, and distributed. Unlike permissive open source licenses that grant broad freedoms, this agreement includes specific restrictions that protect your intellectual property rights and business interests under Swiss law.

When do you need this document?

You need this license when you want to balance openness with control over your software. It's particularly valuable for proprietary software with innovative features that you want to share for educational or research purposes without enabling unrestricted commercial competition. Technology companies often use restrictive open source licenses for core products, development tools, or specialized libraries where they need community contributions but want to prevent competitors from freely incorporating their innovations. This approach is also common for software funded by grants or research institutions that require some level of public access while protecting commercial interests.

Key legal considerations

The license must clearly define permitted and prohibited uses, especially regarding commercial activities and derivative works. You need to specify modification rights, distribution requirements, and any attribution obligations to ensure enforceability. Copyright ownership clauses are crucial – you must establish whether you retain full ownership or grant specific rights while maintaining restrictions. Consider including termination provisions that allow you to revoke rights if licensees violate terms. Patent clauses should address both defensive and offensive patent strategies, particularly if your software includes patented technologies. Revenue-sharing or royalty provisions may be included for commercial uses, but these must comply with Swiss competition law to avoid anti-competitive restrictions.

Legal requirements in Switzerland

Under the Swiss Copyright Act (URG/LDA), your license must respect statutory copyright protections while clearly defining the scope of granted rights. The Swiss Code of Obligations governs contractual aspects, requiring clear terms and conditions that don't create unfair contract provisions. License restrictions cannot violate the Swiss Competition Act (CartA) by creating anti-competitive market conditions or abuse of dominant market position. If your software processes personal data, the Swiss Federal Act on Data Protection (FADP) may impose additional obligations on licensees regarding data handling and privacy. For international distribution, compliance with the Berne Convention ensures your copyright protections extend beyond Switzerland. The license should specify Swiss jurisdiction and applicable law to provide clarity for dispute resolution and enforcement procedures.

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