Trade restrictions on open source software Apparently the US has put Huawei on a trade blacklist that prevents US companies to trade with Huawei. With hardware and proprietary software it is straightforward how this can be executed (don't make any contracts, don't sell stuff/licenses). With OSS this is a lot more complicated since there is no real deal or negotiation between the licensee and the provider of a license. Also, there is not a single copyright holder and copyright matters are often very complicated concerning OSS. So the question is twofold: does the trade blacklist have any effect on OSS and if not, is it at all possible for the US government to limit the trade of OSS?
Publishing source code is protected under the First Amendment. Therefore the US government cannot stop anyone from publishing open source software, and once it is available from a web site it is impossible to stop anyone else getting it. However any kind of support contract (such as this) or other commercial arrangement would fall under the definition of "trade" and be banned. Update in response to comments about ITAR. The USA International Traffic in Arms Regulations still cover cryptographic software. However any attempt to prosecute an open source project for publishing cryptographic software would run up against the First Amendment. In 2008 the 9th Circuit found that open source cryptographic software is covered under the First Amendment, and hence the use of ITAR to restrict its publication is unconstitutional. The US government declined to push this case to the Supreme Court, and no other similar cases have arisen since. In the meantime strong open source cryptographic software has been made widely available from within the USA without US government permission (Linus Torvalds is resident in the US). In theory the US government might launch a case against an open source project, win the appeal in another circuit, and hence create a circuit split which the Supreme Court would have to resolve. However they have now had over 10 years to try this, and the longer they wait the less likely such a case is to succeed.
It depends on what you are selling to the enterprises. You could be selling just a licence to use the program, and retain all the rights on the source code. You could be selling the rights to the source code. For #1, the source code is yours and you can do what it pleases with it1. In fact many programs offer both an open-source licence (which usually forces the user to make its changes to the code publicly available) and a commercial one (which allows the user to keep the modifications of the source code for themselves). For #2, the source code is no longer yours so it is not up to you to decide what to do with it. 1I am assuming no other agreements imposing limits on those; for example that none of your contracts to your customers have a clause forbidding you from making the code available to the public.
As you have agreed, by contract, not to reverse engineer the product, technically it would be a "breach of contract" to do so, assuming such terms are enforceable where you live (or wherever the EULA selects as the choice of forum).
The law in every country where your service is available prevails. That means that if your servers are in Estonia, your file storage is in Lithuania, your company is in Switzerland, you are in France, you hold Thai citizenship, your users are in the USA and the signal transits through the U.K., Belgium, Germany, Canada and Poland then you are subject to the laws of each and every one of them. In addition, if China has reason to believe that the stored files contain matters relating to their citizens then they can take an interest. And so on and so forth ... A country has jurisdiction wherever it wants to have jurisdiction subject to the limits of and its ability to actually enforce its laws. What you are proposing is certainly illegal in many countries and you need to seek professional legal advice - not rely on strangers on the internet.
It seems that you don’t understand what parody is. If you do understand, please explain how it’s even possible to parody computer code. What you can do with “open source” code depends on the licence the copyright holder(s) release it under. For some very permissive licences you can do what you suggest, for most, you can’t.
You are framing it wrong. It is not that "they have put a barrier" to public domain information, it is that they have added an additional source of that information. The new source has a barrier, yes, but that does not prevent you from accessing the same information elsewhere. If you own a copy of some public domain data, you are not allowed to prevent other users from accessing other copies (by claiming copyright infringement or the like); you cannot even prevent people from doing copies from the copies you did provide them. But you are not forced to allow other users to access your copy. Consider the logical conclusion if that were the law. The moment that you downloaded some public domain file into your computer, you would be forced to give access to your hard disk from the internet, isn't it? Would you need to leave your home door open if you happened to have a printed copy of the text there? Of course, there is a need to discriminate between "public domain" (without licence) and "not public domain but open licence" (BSD, CC, GPL, etc.). In the later case the licence could be tailored so that the work could appear in archive.org but that it would be illegal to provide it with the business model of Academia.edu1. But that would be possible only for works not in the public domain. 1 To be decided by a judge on the basis of the wording of the licence and jurisdiction.
You cannot do this through any established public license that I know of, but you could write your own. The model would be any educational use or non-commercial use license, such as CC NC licenses. The main challenge is defining the excluded classes of usage. That is why you should engage an attorney to draft this for you. I don't think there is any point in adding a $5M penalty clause. You offer a separate paid license for individuals who do not want to comply with the particular terms of your license, and set the fee to whatever you want. Saying that you're gonna fine violators is a bad idea because penalty clauses are illegal. Instead, the standard approach is a liquidated damages clause, where you state what a reasonable estimate of your damages would be. In the case of software that is available for purchase, illegal copying of the software obviously results at least in the cost of the software qua lost revenue as damages. Plus shipping and handling.
Some MP3 technologies are still under patent in the US: you can read the wiki page on that matter to see if it is applicable to what you intend to do. This assumes you write your own code – if you use someone else's conversion software, that would depend on the licensing terms for the software.