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    The fundamental problem is coming up with a workable legal definition of what is and isn't "ethical"; if anyone could do that we wouldn't need 99% of our laws. Even "involved in X" is probably far too vague in practice. The JSON license famously said "The software shall be used for good, not evil" but nobody has a clue what that actually excludes, if anything. In practice the only feasible way to enforce your own ethical standards is to require all potential users of your software to get explicit permission to use it from you by explaining what they want to do with it. Commented May 24, 2016 at 6:43
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    The simple answer to the question in your last paragraph is: "Yes, don't give it to anyone to use" Commented May 24, 2016 at 11:03
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    This is perfectly legal AFAIK in theory. The practical aspects are another story. You are going to need a good lawyer to properly phrase and define "any entity involved in Industry X". As someone who negotiates corporate contracts, I see phrases like this all the time in anti-compete clauses, and we strike them all the time because they are too vague, broad and/or subjective. Then there's the matter of enforcement: legal clauses that are not actively enforced by the owning party are problematic to say the least and in many cases they're held null and void. Commented May 24, 2016 at 13:27
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    Notable example: Treefinder's licence: treefinder.de Be warned, he comes off a bit kooky. Commented May 24, 2016 at 14:08
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    Treefinder's license is a cautionary tale. He basically says he can change your license terms any time he wants, which makes the software unsuitable for just about every use. Commented May 24, 2016 at 15:25