What is an Open Source License Review?
An open source license is a document in which the licensor informs the licensee of what they can and can’t do with the software they’re given to use.
This agreement identifies and clarifies rules for how the software should be used to prevent disputes. It includes information such as regarding contract duration and termination, payment schedules, intellectual property (IP), and usage restrictions.
This license should be closely reviewed because it can be quite technical. Doing this will help you to avoid committing any violations that can lead to reputational damage and even lawsuits.
Read the rest of this article to explore the different types of open source licenses, common terms you’ll usually find in these licenses, why these licenses need to be reviewed, and when to hire a lawyer to conduct a professional review.
What are the Different Open Source License Types?
There are various types of open source license types. These include:
- Public domain license. Software in this category can be changed or used by anyone without any restrictions.
- Permissive license. This license mentions some rules for how the software can be used and distributed, but it’s not too restrictive. An example is an MIT license that’s simple, allows for distribution, and doesn’t have strict requirements.
- Copyleft licenses. This is a restrictive license type that specifies requirements which need to be met before you can change or distribute the open source code.
What’s Usually Included in an Open Source License?
An open source license usually contains the following information.
- Term. The contract will clearly mention the contract’s effective and termination dates.
- Installation. This section mentions if the licensor will install the licensed software on the licensee’s devices.
- Payment. The licensee will make payments to the licensor to use the software, which can be made in an annual lump sum or via installments.
- Ownership. The licensor will remain the sole owner of all rights, title, and interest regarding the software and its documentation.
- Termination. It’s important for the license to specify how the contract can be terminated by either party, such as with written notice.
- Confidentiality. The licensee is required to protect all trade secrets and other confidential information. This serves to protect the licensor.
- Acceptable Parameters and Testing. The licensor can conduct acceptance testing to see if the software works properly. One of the licensee’s duties is to supply all test data and results to the licensor.
- Dispute resolution. Should the parties have a dispute, the agreement needs to explain what method should be used to resolve it, such as arbitration.
How Do You Review an Open Source License?
When reviewing an open source license, there are important things to check for. These include the following:
- Permissions. Check what the license states you’re allowed to do with the software, such as if you can modify or distribute it. You want this to be clear so you don’t make any mistakes.
- Obligations. You might have to do certain things in order to be able to use the software, such as credit its author. The contract should specify how this should be done.
- Trademark restrictions. Although you’re using the code, the license might not give you rights to use the company’s trademarks or other intellectual property.
- Termination. Check the license for information about what actions could terminate the license, such as if you violate any of the stated requirements.
- Commercial usage. You should check how the content is allowed to be used commercially, if applicable.
- Dispute resolution. The license needs to specify how disputes will be resolved, such as via mediation or arbitration.
- State governance. Check what state’s laws govern the license to ensure legal compliance throughout the project. While many open source licenses are global, they can include rules (such as regarding intellectual property) which vary across states.
- License conflicts. Some licenses can clash with others. If you’re using more than one, you should ensure that combining codes won’t cause legal risks.
Why Should You Hire a Lawyer to Review Your Open Source License?
It’s advisable to contact a lawyer for an open source license review, especially if it’s filled with technical jargon that makes it challenging to understand. Here’s how a lawyer will give the open source license a thorough, professional review.
- A lawyer will clarify any confusing or vague language so you can understand all your duties and requirements.
- They’ll explain what open source components are compatible, minimizing your legal and financial risks.
- They’ll assist you with recording your code usage to protect you if there are issues later.
- They can check the license for any unfair clauses, such as regarding termination. If termination clauses severely restrict your use of the code in your project, it could hamper your work should the agreement end suddenly.
- They’ll check that dispute resolution is clearly specified, in the hope of keeping potential disputes out of court.
- They’ll check the license against various applicable laws and regulations to ensure complete compliance.
How do you get help with an open source license review?
If you need to have your open source licence reviewed, you should hire a lawyer from ContractsCounsel, an online legal marketplace that connects clients with experienced, skilled lawyers who have been vetted on the platform.
Here’s how to post a request for an open source license review.
- Visit the ContractsCounsel marketplace.
- Post your project - it’s free.
- Provide some details about your project so that lawyers have clarity on what you need.
- Wait for bids. Lawyers will send you multiple bids to work on your project.
- Review the lawyers’ profiles based on factors such as their experience, fields of expertise, previous projects completed on the platform, and more.
- Choose a lawyer who’s aligned with your requirements and start working with them to obtain a professional legal review of your open source license. It gives you peace of mind that you can safely use the software for your project.
