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Is the ‘commons clause’ a threat to open source?

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There are discussions on various forums regarding this clause with conflicting views. So, I will try to give my views on this.

Opposers of the clause believe a software becomes propriety on applying commons clause. This means that any service created from the original software remains the intellectual property of the original company to sell.

The fear is that this would discourage the community from contributing to open-source projects with a commons clause attached since the new products made will remain with the company. Only they will be able to monetize it if they choose to do so.

On the one hand, companies that make millions of dollars from open source software and giving anything back is not in line with the ethos of open source software. But on the other hand, smaller startups and individual contributors get penalized by this clause too.

What if small companies contribute to a large open source project and want to use the derived product for their growth? They can’t anymore if the commons clause is applied to the project they contributed to. It is also not right to think that a contributor deserves 50% of the profits if a company makes millions of dollars using their open source project.

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