Some people gave a name to this type of sharing: they call it Creative Commons Attribution-Share Alike License. In setting up the Scratch community, we decided to adopt this approach since we believe that it supports learning and creativity within the community. By sharing recipes and ingredients (scripts and artwork), people can build upon one another’s ideas and everyone will benefit.
In designing the Scratch website, we included features to encourage people to share and to give credit to others. On each project page, you can always download the original scripts for the project. If you remix a project (modifying the scripts or artwork, and sharing the result), the new project will include a note saying it is based on someone else’s project. In addition, we encourage you to give credit in the Project Notes, mentioning the people and projects that inspired you.
For the more technically inclined: you might find it interesting that each Scratch project page comes with embedded RDF metadata that sets the license of the project as well as other properties. We actually based our RDF on the one Flickr uses but changed it so it represents the content as "InteractiveResource".
Learn more about the Terms of Use of the Scratch online community and the Creative Commons initiative.
Scratch Team
MIT Media Lab