LegalGELegalGE
...

Open Source Licensing

Can I sell software containing open source code?

Yes, usually, but you must comply with the license terms (e.g., sharing source code under GPL).

What is a Copyleft license?

It's a license (like GPL) requiring that any derivative work using the code must also be distributed under the same open terms.

Are Apache 2.0 or MIT licenses safe for business?

Yes, these are "Permissive" licenses that allow you to use the code in commercial, proprietary products.

What happens if I violate an open license?

The copyright holder can sue you, demand damages, and seek an injunction to stop product distribution.

Reading Time

3 min

Published

...

Open Source Licensing is a legal framework defining the rules for using, modifying, and distributing software code. Although "Open Source" is often associated with free usage, it is subject to specific licenses (GPL, Apache, MIT, BSD, etc.), violation of which can cause serious legal problems for a company. "Viral" or Copyleft licenses are particularly risky, as using them in your product may obligate you to make your entire commercial code public. For Georgian startups and tech companies targeting international markets, proper Open Source management is crucial for protecting intellectual property.

Legal.ge offers comprehensive consulting services in Open Source Licensing. Our experts will help you analyze license compatibility, develop a Compliance Policy, and choose a strategy that protects your Proprietary Code from unforeseen "opening."

What does the Open Source Service cover?

We help companies safely use Open Source:

  • License Identification and Audit: Scanning third-party libraries and components used in your product and analyzing their legal licenses.
  • Compatibility Check: Determining compatibility between different licenses (e.g., GPL and Proprietary) to avoid conflicts.
  • Dual Licensing Strategy: Developing a business model where a company distributes the same product under both an open (free) and commercial (paid) license.
  • Dispute Resolution: Assisting in managing Copyright Claims regarding infringement.
  • Internal Policy Implementation: Creating guidelines for developers on which libraries are permissible to use.
  • M&A Transactions: Code Due Diligence before investment or sale to assure investors of IP cleanliness.

Common Real-World Scenarios

Risks associated with Open Source:

  • GPL Virus: A developer used a small GPL-licensed library in a commercial app. Due to license terms, the entire app must become open source, destroying the business model.
  • Patent Infringement: Some open licenses contain patent-related clauses that may restrict a company's right to enforce its patents.
  • Attribution Obligation: A company used MIT-licensed code but failed to include the author and license text in the product, a legal violation.
  • Tivoization: Technical restrictions preventing modified versions of open source code from running on a device (prohibited by GPLv3).

Legal Framework: International Recognition

Although open source licenses (especially those based on US law) are not explicitly mentioned in Georgian legislation, they are recognized as copyright agreements. The Law on Copyright and Related Rights protects software, and the license defines the terms of rights transfer. Under international practice, violating these licenses entails liability.

Step-by-Step Service Process

  1. Scanning: Automated or manual check of the codebase.
  2. Risk Ranking: Categorizing licenses into Red (prohibited), Yellow (cautionary), and Green (safe).
  3. Remediation: Replacing problematic code or purchasing a license.
  4. Documentation: Preparing a compliance report.

Why choose a specialist on Legal.ge?

Open Source is a powerful tool, but it requires careful handling. General lawyers often lack technical nuance understanding. Legal.ge experts possess both legal and technical competence to ensure your product's legal safety without hindering innovation.

Updated: ...

Specialists for this service

Loading...