Use of Open Source Software in a Startup

OSS is a lucrative option as it’s cost effective, but it’s not “free” in the sense of being without obligations. See these for example-

1. BusyBox Lawsuits BusyBox, a GPL-licensed software, was the subject of multiple lawsuits against companies that failed to provide source code for modifications. These lawsuits highlighted the importance of complying with GPL requirements.

2. VMware Case VMware was sued for using GPL-licensed code in a proprietary product without meeting the copyleft obligations. While the case was settled, it underscores the need for startups to understand OSS licensing terms.

OSS comes with various licenses, and each has specific obligations. Failing to comply with these terms can result in legal action. Common OSS licenses include:

• MIT License: Permissive, allowing almost unrestricted use, modification, and distribution.
• Apache License 2.0: Similar to MIT but includes patent use rights.
• GPL (General Public License): Requires that any modified or derivative works be released under the same license, making it “copyleft.”
• AGPL (Affero GPL): Extends GPL requirements to software accessed over a network.

you fail to comply, you could lose the right to use the software, and in additional to a law suit, you may need to:

• Make the source code of derivative works available.
• License derivative works under the same OSS license.

To mitigate these risks, startups should: a clear open-source policy, conduct regular audits, document usage and licenses, segregate proprietary and OSS code, and most importantly, READ THE LICENSE TERMS!

PS- I am a corporate lawyer, AMA!