Navigating Software Component License Risks and Open Source Compliance Rules

In today's fast-paced software development landscape, nearly all of us reach for open source software components when we're trying to get projects done. 

Open source libraries and frameworks offer numerous advantages, such as: 

• They save time 
• They reduce development costs 
• They harness the collective wisdom of the open source community 

However, with great power comes great responsibility. Developers and organizations now find themselves facing the thorny specter of software component licensing and compliance.

Software Component License Risks: The more you know!

Open source software is governed by licenses that dictate how you can use, modify, and distribute the code. Ignoring these licenses can lead to significant legal and financial risks. 

Consider these  common risks associated with software component licenses:

1. Non-Compliance Fines: Fail to comply with the terms and conditions of open source licenses and your organization may face legal consequences, including hefty fines.
2. Reputation Damage: Violate open source licenses and your organization's reputation can be tarnished, leading to loss of trust within the developer community.
3. Code Contamination: Mix proprietary code with open source code and you may inadvertently subject your entire project to open source licensing terms.
4. Litigation: Some open source communities are vigilant about enforcing their licenses. They may take legal action if they discover violations.

An Overview of Software Licenses

There are two broad types of software licenses - permissive and restrictive, also known as Copyleft licenses. 

1. Permissive Licenses: Generally more lenient in their terms, these licenses are the “safest” for use in proprietary applications and products. 
   • MIT License: Among the most permissive licenses, the MIT license allows almost unrestricted use of the software, with minimal requirements, such as including the original copyright notice.
   • BSD Licenses (e.g., BSD-3-Clause, BSD-2-Clause): Also permissive, these licenses come with minimal restrictions on how the software can be used and redistributed.
   • Apache License: The Apache License is permissive and allows for easy incorporation of open source code into proprietary projects. It also includes a patent grant.

2. Copyleft Licenses: Proceed with caution! Copyleft licenses require you to release your project's source code if you distribute it with a copyleft-licensed component. Some companies have explicitly banned these licenses from use in their products.
   • GNU General Public License (GPL): The GPL is a strong copyleft license that requires derivative works to be distributed under the same terms as the original open source software. There are different versions of the GPL, including GPLv2 and GPLv3.
   • GNU Lesser General Public License (LGPL): The LGPL is similar to the GPL but is less restrictive when it comes to using the software in proprietary projects.
   • Mozilla Public License (MPL): The MPL is a copyleft license with a unique approach, allowing a combination of open source code with proprietary code under specific conditions.

3. Weak Copyleft Licenses:
   • GNU Lesser General Public License (LGPL): While the LGPL is often considered a strong copyleft license, it has a weaker copyleft option called "Lesser General Public License for use with most software" that allows more flexibility.

A Step-by-Step Guide to Fix Open Source License Issues

To mitigate these risks, it's crucial to understand the open source compliance rules and the licenses that govern your software components so you can prevent any unwanted surprises. Here are some key steps to get towards better license hygiene:

1. License Identification: Identify all open source components used in your project, including their licenses. Tools like Finite State make this process more manageable.
2. License Compatibility: Ensure that the licenses of the open source components you use are compatible with each other and with your project's licensing goals. Some licenses are more permissive, while others are more restrictive. Be sure to update or remove any software components that don’t align with your company’s risk tolerance.
3. Attribution and Notices: Many open source licenses require you to give proper attribution and include specific notices in your project's documentation or user interface. If you have these licenses in your code, be sure to add proper attribution in your application.
4. License Documentation: Maintain detailed records of all open source components and their licenses in your project documentation. This helps in case of audits or legal disputes.
5. Regular Audits: Periodically audit your software projects to ensure ongoing compliance with open source licenses, especially when new components are added.
6. Legal Counsel: When in doubt, seek legal counsel specializing in open source software licensing to navigate complex legal issues.

How Finite State Can Help

If this feels a little intimidating, we’ve got good news: Finite State’s new License feature can help you track your software component licenses! Any Binary Analysis or SBOM ingestion will automatically enrich with license information that we match from our deep data sources.

After enrichment, you can easily see the full list of components with Copyleft licenses from your Artifact overview page, or if you already know which licenses you want to focus on, you can filter your SBOM to look at one (or many!) specific license(s). You can also export this information as part of your software component report, to use in other contexts, like bulk ticket creation for your software development team.

Need help with identifying and reporting on your licenses? Reach out to our sales team today! We'll answer your questions, demo our platform, and show you all the functionality we offer to support software development and security. 

Conclusion

Open source software components often supercharge your software development efforts. They also come with licensing obligations and you shouldn't take these lightly.