Note that as far as the newspaper article reported on facts it got them essentially right. However, it drew the wrong conclusions, based on an incorrect understanding of the situation and the realities of commercialisation, and these incorrect conclusions triggered Nick’s blog. My previous blog addressed issues around commercialisation of ICT IP. Now I’d like to address some of the specifics of the OK Labs situation, and the NICTA IP involved.
Before delving deeper, I must say that there are severe limits to what I can reveal. I was a director of OK Labs, and as such bound by law to confidentiality with regard to information which I obtained as a director. Beyond that there are confidentiality clauses affecting the main shareholders (which includes myself as well as NICTA). I also was an employee of OK Labs from early 2007 until mid 2010. Essentially I have to restrict my comments to what’s on the public record or was known to me before the respective agreements were signed.
A tale of three microkernels and four names
First there is the issue of the three kernels, the first one appearing under two names, which continues to create confusion, even though the facts were essentially correctly reported in the newspaper article.
Before OK Labs there was NICTA’s version of the L4 microkernel. This was an evolution of the open-source Pistachio microkernel, originally mostly developed at Karlsruhe University in Germany. We had ported it to a number of architectures, including ARM, had optimised it for use in resource-constrained embedded systems, and had designed and implemented some really cool way of doing context switches really fast (factor 50 faster than Linux). We had also ported Linux to run on top (i.e. used L4 as a hypervisor to support a virtualised Linux). Thanks to the fast context-switching technology, that virtualized Linux ran faster than native.
As I said, this microkernel started off as open-source (BSD license), and remained open-source. While the BSD license would have allowed us to fork a closed-source version (while acknowledging the original authors) this would have been a stupid thing to do. We wanted our research outcomes to be used as widely as possible.
In 2004, that L4 microkernel caught the attention of Qualcomm. They had two specific (and quite different) technical problems for which they were looking for solutions. One required a fast, real-time capable kernel with memory protection. The other required virtualization of Linux on ARM. Our L4 provided both, and nothing else out there came close.
Qualcomm engaged NICTA in a consulting arrangement to help them deploy L4 on their wireless communication chips. The initial evaluations and prototyping went well, and they decided to use L4 as the basis of their firmware.
This was all before OK Labs was founded. In fact, at the time we created OK Labs, the first phones with L4 inside were already shipping in Japan! And all based on the open-source kernel.
The engagement with Qualcomm grew to a volume where it was too significant a development/engineering effort to be done inside the research organisation. In fact, the consulting revenue started to threaten NICTA’s tax-free status! Furthermore, we saw a commercial opportunity which required taking business risks, something you can’t do with taxpayer $$. This is why we decided to spin the activity out as OK Labs. OK Labs marketed L4 under the name “OKL4 microkernel”, and continued its development into a commercial-grade platform.
OK Labs initially operated as a services business, serving Qualcomm, but also other customers. Note that they didn’t even need NICTA’s permission to do this, they took an open-source release and supported it. Anyone could have done this (but, of course, the people who had created the technology in the first place were best placed for it). Among others, this meant that there was never any question of royalties to NICTA.
Also, it is important to note that Qualcomm would almost certainly not have adopted L4 if it wasn’t open source. Their style is to do stuff in-house, and it would have been their natural approach to just re-do L4. The engagement with us was unusual for them, but it led to NICTA technology being deployed in over 1.5 billion devices.
OK Labs later decided to become a product company, and seek VC investment to enable this. They developed their own product, the OKL4 Microvisor. This is the successor of the OKL4 microkernel, and was developed by OK Labs from scratch, NICTA (or anyone else) has no claim to it. It is licensed (and is shipping) on a royalty basis, which is exactly what you expect from a product company.
Then there is the third microkernel, seL4. This was developed from scratch by NICTA, and its implementation mathematically proved correct with respect to a specification.
The correctness proof was the big-news event that made headlines around the world. It is truly groundbreaking, but primarily as a scientific achievement: something people had tried since the ’70s and later put into the too-hard basket. But, as per my atomic-bomb metaphor in the previous blog, once people know it’s possible they can figure out how to do it themselves. Particularly since we had published the basics of the approach (after all, doing research is NICTA’s prime job, and it’s not research if it isn’t published). And it’s seL4′s development (and all the stuff that made its verification possible) that took 25 person years. This is the effort behind the biggest ICT research success that came out of Australia in a long time. It’s fair to say that this has put NICTA on the map internationally.
seL4 is nevertheless something that can be turned into an exciting product, but that needs work. As argued in the previous blog, that’s not something you do in a research lab, it’s company business. That’s why NICTA needed a commercialisation channel.
The way they decided to do it was to license seL4 exclusively to OK Labs, with a buy-out option (i.e. the option to acquire the IP outright) on achieving certain milestones (for the reasons explained in the previous blog). In exchange, NICTA took equity (i.e. a shareholding) in OK Labs, as a way to get returns back if commercialisation succeeded. Using OK Labs as the commercialisation vehicle was an obvious choice: Firstly, OK Labs was developing the market and distribution for this kind of technology. Secondly, OK Labs does all its engineering in Australia, and any alternative would have been overseas. A reasonable deal.
How about national benefit?
The (more or less clearly stated) implication from the commentators that NICTA made a mistake is totally unfounded. And that should not come as a surprise: the people involved in the decision knew what they were doing. The director of the NICTA Lab where the work happened was Dr Terry Percival. He happens to be the person whose name is on the much-lauded CSIRO wifi patent! And NICTA’s CEO at the time was Dr David Skellern. He was the co-founder or Radiata, which implemented CSIRO’s wifi invention in hardware, and got sold for big bucks to CISCO! Those guys knew a bit about how to commercialise IP!
There are comments about the “non-discussion of how much money changed hands”. Well, that happens to be part of the stuff I can’t talk about, for the reasons listed at the beginning.
Also, national benefits aren’t simply measured in money returned to NICTA. There are other benefits here. For one, there is a publicly stated intent by OK Labs’ purchaser, General Dynamics (GD), to not only maintain but actually expand the engineering operation in Australia. Also, one thing we learn is that technology like seL4 isn’t trivial to commercialise, it requires a big investment. GD has the resources to do this, and is active in the right markets, so has the distribution channels. Finally, there is a lot of on-ging research in NICTA which builds on seL4, and is building other pieces which will be required to make best use of seL4. NICTA owns all this, and is certain to stay in the loop. Furthermore, we now have a lot of credibility in the high-security and safety-critical space. This has already shown tangible outcomes, some of which will be announced in the next few weeks.
Did we make all the best decisions? This is hard to say even with the benefit of hindsight. We certainly made good decisions based on the data at hand. The only sensible alternative (both then and with the benefit of hindsight) would have been to open-source seL4, as we had done with L4 earlier. This might or might not have been the best for maximising our long-term impact and national benefit.
We can’t really tell, but what we do know is that we’re in a very strong position of being able to do more high-impact research. In fact, we have already changed the way people think about security/safety-critical systems, and we are likely to completely change they way future such systems will be designed, implemented and verified.
There has been some publicity here in Oz about the sale of OK Labs and its implications. Unfortunately not all of that publicity was particularly well-informed. One particular instance is a blog which in turn refers to an article in The Australian newspaper.
The blog, and, to a degree, the newspaper article exhibit some significant misconceptions about how IP commercialisation works, as well as a number of mis-interpretations of publicly-stated facts about the OK Labs sale.
At the opening session of this year’s USENIX Annual Technical Conference I mentioned that accepted papers were withdrawn, and commended the authors on their integrity. This created some interest, including people tweeting about it. I think the episode deserves some publicity.
There were, in fact, two papers which were withdrawn. Paper A was a ”full” paper which was conditionally accepted by the program committee (PC), while Paper B was a ”short” paper which was accepted. What happened?
Paper A is actually a good example of the scientific peer-review process working well. The paper investigated a particular performance effect in storage devices, and at the PC meeting there was intense discussions of its merits.
The experts debated whether the result could be true and there was significant concern that the effect might be a fluke, potentially an issue with a particular set of devices. On the other hand, one PC member with access to confidential manufacturer data from a similar (yet unreleased) device had evidence that it might be real. If the effect was real, the work would be quite interesting, and definitely worth publishing.
After much debate, we decided to accept the paper conditionally, subject to the authors providing satisfactory answers to critical questions from the shepherd (who was an expert on these devices and the main sceptic).
I should add that, like most systems conferences, ATC uses shepherding of accepted papers. The shepherd is a PC member who needs to approve the final (camera-ready) version of the paper. Specifically, the shepherd ensures that all issues raised by the reviewers are dealt with by the authors. In this sense, all acceptances are somewhat conditional, but this case was different: there were fundamental doubts on whether the paper was sound, and the shepherd’s job was to investigate and either put the doubts to rest or kill the paper.
As it turned out, the reviewers (PC members) had indeed touched a sore point, as the authors noted when trying to provide answers to the shepherd’s questions. In the end, they found that the student doing the experiment had stuffed up, and misrepresented a crucial number by two orders of magnitude! And, for good measure, the student had made another mistake of similar magnitude, which had confused things further. (This is really bad, of course, but it’s a student, still learning the ropes, and it’s the professors’ responsibility to ensure that everything is correct.)
To their credit, the authors reacted quickly, and within less than a week admitted that they had stuffed up, apologised profoundly, and withdrew the paper. Btw, the “sceptic” on the PC still thinks that the work is likely to lead to publishable results, so the authors should definitely complete their investigation!
Paper B’s story was a bit more surprising. It was also about a performance issue, this time with networking equipment. Since it was a “short” paper, no earth-shaking results were expected. Yet it was somewhat borderline, with most reviewers being luke-warm at best if not negative about it, thinking it didn’t really account to much of significance. It got up because one reviewer championed it, arguing that it was a surprising result coupled with some nice performance tuning work by the authors. In the end, the paper was accepted, subject to standard shepherding.
When preparing the final version, and re-running experiments to address issues raised by reviewers, the authors found that they could not reproduce the original results. This meant they had no real story that they could back with solid experimental data. So they had to withdraw the paper, and did so without any attempt to bullshit themselves out of the situation.
Of course, neither team should have got into this situation in the first place. In both cases there was a failure of the authors’ internal process which allowed (potentially) incorrect results to get out.
However, nobody is perfect, and shit happens. And more of it happens when you’re under time pressure (as we almost always are working towards a paper deadline). And shit happens in the best of families (one of the paper was from very well-known and respected authors).
But it is important to be alert, particularly in a university environment, where inevitably the experimental work, and the low-level evaluation, is done by students, who have limited experience. The profs must be sure they know what’s going on and that they can be confident of the integrity of the experimental data.
The important thing is what both teams did once they realised they had a problem: if you have stuffed up, own up to it rather than making it worse by trying to hide it! Retracting an accepted paper is very painful and highly embarrassing, but that is the smaller evil compared to publishing nonsense. Someone is bound to find out, and then you’re looking really bad! In this case, it was only a few people on the program committee who knew about it, and they weigh the integrity of the authors’ actions higher than their mistakes.
So, let this be an example of what to avoid, but also of how to recover in an honourable way from a bad situation. I commend both teams on their actions.