Explanation of Open Source Character
An Open Source Character (OSC) is one that has been created and immediately released for anyone to use. Sometimes this is referred to as "Creative Commons License," or as "Copyright Left" or as "All Rights Reversed." While those aren't all exactly the same thing, what any of those basically mean is that the OSC has been declared a Public Domain Character by their creator, meaning that it is now In the Public Domain without having to wait for 75 years after the creator's death (or whatever the current legal time is).
Origin of "The Paragraph"
The first Open Source Character is generally agreed to be Jenny Everywhere, created by Steven Wintle (although some would say Octobriana*). As part of her creation, Wintle wrote "The Paragraph" - a statement that should always appear anywhere Jenny does, so that people will know that she belongs to everyone to use. The Paragraph is simply this:
The character of Jenny Everywhere is available for use by anyone, with only one condition. This paragraph must be included in any publication involving Jenny Everywhere, in order that others may use this property as they wish. All rights reversed.
- Steven Wintle
As a result of Jenny's status as an OSC, and her many appearances, many OSCs come with their own version of The Paragraph, or a Paragraph variant that says basically the same thing. Many will ask that the character's creator be named as well.
*Octobriana may have come before Jenny Everywhere, but she was the product of a Communist group effort that made her Public Domain. She was not specifically created and released as an Open Source Character.
Open Source Characters known to have been published in comics
Comic Vine creators who have made Open Source Characters
These creators have made OSCs, and some have appeared in comics, but not all.
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