How to Successfully Open-Source Your Internal Tool and Transfer It to a Foundation: Lessons from Block and Goose

Introduction

Internal tools often hold the potential to become powerful external services, as seen with Amazon's AWS and Block's coding agent, Goose. Block open-sourced Goose under a permissive license, but quickly encountered governance challenges—primarily trademark ownership—that hindered enterprise adoption. The solution was to transfer Goose to a foundation, specifically the newly formed Agentic AI Foundation (AAIF) under the Linux Foundation. This guide outlines the step-by-step process Block followed, providing a roadmap for other companies looking to open-source their internal tools and hand them over to a neutral foundation for sustainable growth.

What You Need

Before starting, ensure you have the following prerequisites:

• Proven internal tool – A tool that has been successfully used by your employees (e.g., Goose was rolled out to all 12,000 Block employees).
• Permissive open-source license – Choose a license like Apache 2.0 or MIT to encourage adoption.
• Clear ownership of trademarks – Understand that retaining trademarks can limit community trust and enterprise use.
• Community interest – Early adoption and community engagement (as Block saw with Goose) are critical.
• Potential foundation partner – Identify a foundation that aligns with your tool's ecosystem (e.g., Linux Foundation, Apache Foundation, or a new foundation).
• Legal and governance expertise – Work with lawyers and open-source experts to navigate trademarks and governance structures.

Step-by-Step Guide

1. Step 1: Develop and Validate Your Internal Tool

   Start by building a tool that solves a real problem within your organization. Block created Goose as a coding agent to assist developers. Test it thoroughly with your teams, gather feedback, and iterate. Once it's proven internally, you can consider open-sourcing it. Ensure the tool is robust, well-documented, and has clear use cases.

2. Step 2: Open-Source Your Tool Under a Permissive License

   Release the tool to the public with a permissive license to maximize adoption. Block did this for Goose, making the code freely available. Monitor early adoption metrics—if the community embraces it, you're on the right track. However, be aware that merely open-sourcing the code does not resolve all governance issues.

3. Step 3: Identify Governance Challenges

   After open-sourcing, assess the barriers to enterprise adoption. Block's team, led by Manik Surtani, noticed that trademark ownership remained with the company—this lack of transparency made enterprises hesitant to contribute or rely on the project. Common challenges include trademark control, lack of neutral governance, and unclear decision-making processes. Document these issues and prioritize them.

4. Step 4: Seek a Suitable Foundation Home

   Evaluate foundations that can provide neutral governance. Block considered various options and eventually collaborated with the Model Context Protocol (MCP) team at Anthropic and other stakeholders. The key is to find a foundation that aligns with your project's goals and community. For Goose, the Agentic AI Foundation was created under the Linux Foundation umbrella to house Goose, MCP, and Agents.MD.

   

5. Step 5: Collaborate with Related Projects

   Form alliances with complementary projects to strengthen the foundation's ecosystem. Block worked with the MCP team and the Goose Crew to launch the AAIF. This collaboration not only provides technical synergy but also builds a broader community. In Surtani's words, launching with a trio of tools (Goose, MCP, Agents.MD) was partly for expediency—it gets the foundation up and running quickly.

6. Step 6: Establish or Join a Foundation

   If an existing foundation doesn't fit, consider creating a new one under a larger umbrella, like the Linux Foundation. Block co-founded the Agentic AI Foundation, which became an arm of the Linux Foundation. This step involves legal paperwork, defining governance models, and securing corporate and developer buy-in. Ensure the foundation's mission is clear and inclusive.

7. Step 7: Transfer Ownership and Trademarks

   The final step is to hand over the project—including trademarks—to the foundation. Block transferred Goose to the AAIF, removing the previous trademark restrictions. This move enhances transparency, encourages enterprise adoption, and allows the community to trust that the project will remain neutral. After transfer, focus on community growth and contribution.

Tips for Success

Here are key takeaways from Block's experience:

• Prioritize governance early – Don't wait until adoption slows down. Address trademark and decision-making issues from the start.
• Engage the community – Involve developers and corporate partners in the foundation's formation. The AAIF's success relied on buy-in from both groups.
• Be transparent – Openly communicate the reasons for transferring to a foundation. Block's team explained the headwinds they faced, which built trust.
• Leverage existing ecosystems – Partner with projects like MCP to create a strong, interconnected foundation.
• Consider expediency – Launching with multiple tools can speed up the foundation's establishment and attract a wider audience.
• Legal and trademark expertise – Work with lawyers who understand open-source foundations to ensure a smooth transfer.

By following these steps and tips, your internal tool can follow Goose's path to a successful, community-driven future under a neutral foundation.