Another application for openness: Open Corporations. Michael Bauer – previously Vice President of Jabber – introduces this concept in his writing Open Corporations: Independent Labels for Rock Star Developers. The Open Corporation is a legal entity established for an open source project that manages copyright, secures royalties, and provides compensation where appropriate to open source developers. As stakeholders in a legally recognized entity, developers are granted equity in the Open Corporation. The method of allocation and the valuation of the equity is defined by the Open Corporation. According to Michael Bauer the Open Corporation will serve as a vehicle to create more sustainable open source business models that support a broader open source developer base.