> protect free and open-source software as publicly funded works

> The hideous other side of the coin is that countries could establish ownership rights

The first does not lead automatically to the second. The state can help better protect the open-source arrangement (as in the government being able to sue). But it does not mean the States will necessary "own" it.

States fund a lot of research papers. They do not "own" that research, but this does not mean they won't disallow greedy publishers from cashing in on it.

All the above does not answer your question: Can you argue OSS is publicly funded ? Definity Yes.