The fear that our lawyers have is that, since putting up the software in a service counts as a derived work, our whole software stack (including the stuff we don't open source) will have to be opened along with it. There have to be clear service boundaries between the AGPL software and the stuff we write ourselves, and the lawyers don't trust us to write in appropriate boundaries.
It's really kinda tragic, because we actually do submit source code upstream when we make changes to open source software that we run internally. As in, if it's an OSS product that we just use for some dumb internal automation thing, we'll submit patches if the license is BSD or MIT, but as soon as GPL (especially AGPL) hits anything suddenly the lawyers get paranoid because of what constitutes a "derived work", which can be interpreted as anything that links against the software to make a complete product.
The upshot of this is, if the OSS software is on an unrestrictive license like BSD or apache, we contribute upstream. If it's GPL or especially AGPL, we simply don't touch it, ever.
[1] A very, very well known technology company.
So the reaction you are talking about is natural behavior of lawyers being exposed to legal documents and contracts. If there is anything that could be interpreted to impact the company, their job is to consider it and think "what-if".
The question comes down to, what is a healhty way to handle the result of lawyers paranoia. Best-practice is to do a cost-benefit analysis and balance the benefits with the insight of the legal advice. Second-worst is to avoid anything with a risk, regardless of benefits, in order to avoid it. Worst choice is to ignore the lawyers. Most companies, including the "very well known technology companies", pick the second-worst option for anything that is not critical to the company survival. Its clearly not the best option, but it keeps the status quo.
Have there been any court cases involving AGPL violations? I wonder if some of Gil Yehuda's fears are partly out of lack of clarity on where the reach of the AGPL ends? For example claiming the MongoDB drivers 'violate the AGPL license', I´d prefer to see a response from GNU on this.
A perhaps more interesting question is how they manage contributions and pull requests - if i'm using the server under agpl, it seems natural to contribute code under agpl. But now that code can't be used in the commercially licensed upstream "fork" unless that fork is sold under the agpl... So either contributors will have to donate code, or sell code to upstream for use in the "closed" project.
I could see that get a bit hairy with user-contributed bug fixes?
I'm also fascinated when companies use a license and then state in their FAQ that they didn't really mean all the terms of the license. If this comes up in court, the judge might take the FAQ into account and interpret the intent of the licensor, or might just look at the license text itself. It'll be interesting to see what happens. My advice for now is to assume the text of the license to be what the licensor intended and my hope is that companies that use open source licenses simply use the licenses that match what they mean. If they really mean that they want you to pay, they should just be clear about it and people can decide if they want to pay.
My guess is that they have two motivations, both of which are fairly traditional GPL motivations: 1) sell AGPL exceptions to commercial licensees; and 2) prevent a competitor from making a private commercial fork, where the competitor improve the DB and licenses their version to clients, without sharing the source to their improvements.
As for the "part of a web service"-bit, I'm not sure what the agpl's actual "reach" is. My understanding is that with a (modified) db under agpl powering eg a web app runing in php, the end users (accessing only the web server) would not be entitled to the db source. If the agpl covered the web srrver itself or a php library on the other hand, the users would be entitled to that code?
Similarly if one sold a modified db-as-a-service, modifications would be covered by the agpl.
If it was, the EULA for SQL server and oracle would have to include copyright permission for derivative works. That we do not see that should be a clear sign that the scope of copyright has not reached that far yet.
The next step after AGPL will probably be BrainGPL requiring you to publish all thoughts you have about any code you look at ever.
It's not that simple. Even if you're a company that wants to use the software and contribute changes upstream, it's still a dumb idea to use AGPL software.
Because of the loose definition of what constitutes a derived work, modifying AGPL software (even if you put those modifications upstream) means you might have to open source your entire software stack. The AGPL is not like the LGPL, it doesn't contain any exceptions for linking against it in an overall product. Unless you have clear service boundaries, you are creating a derived work every time you use AGPL software in a service.
In my company, our lawyers outright forbid the use of AGPL software altogether for this reason. Even software that's only used internally. As _delirium mentioned above[1], that's not entirely an unwanted thing from the licenser's perspective: they typically do this so you'll buy their commercial license. But don't assume the only people who don't like AGPL are non-contributing freeloaders.
We submit tons of stuff upstream on a regular basis at my company, but we simply can't do it with AGPL software. Seeing any reference at all that our company (which has some of the deepest pockets in the planet) uses AGPL software anywhere in its stack will open ourselves up to lawsuits immediately. So we just don't touch it, ever.
For example, this openstack thread always keeps me alert using APGL when I am developing a solution. http://lists.openstack.org/pipermail/openstack-dev/2014-Marc...
and here is MongoDB's FAQ explaining APGL in plain English: http://blog.mongodb.org/post/103832439/the-agpl