🇺🇸United States

Software Licensing and Open Source Compliance Risk

0

Definition

SMB development firms using open source software often lack proper license compliance and tracking processes, creating legal and financial liability. The problem: (1) open source licenses have varying restrictions (GPL, AGPL, MIT, Apache, etc.) requiring understanding and compliance; (2) dependency trees are complex - developers may unknowingly include restricted licenses; (3) non-compliance can create licensing claims, code seizure demands, or derivative work requirements; (4) some licenses (like AGPL) require source code disclosure or SaaS licensing fees; (5) no systematic process for tracking licenses creates audit risk; (6) customers increasingly audit suppliers for license compliance; (7) using restricted licenses in products can require licensing from copyright holders, creating unexpected costs. Companies could face cease-and-desist orders or expensive rewriting if violations discovered.

Key Findings

  • Financial Impact: $20,000 to $100,000
  • Frequency: annual

Why This Matters

Software composition analysis (SCA) tools, license compliance scanning, open source governance consulting, legal review of license portfolios, automated dependency tracking, open source policy development

Affected Stakeholders

CEO/Founder, VP of Engineering/CTO

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

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