Leveraging open source software (OSS) is common practice for software development teams. Researchers estimate 96% of codebases contain at least one open source component. However, all open source software has copyright and license implications that every developer should be aware of – even those that don’t have a license! Arguably, the most misunderstood and therefore risky license situation is what we call the “Unknown License”.
The Risks of Unknown Licenses
When developers incorporate OSS into their projects, they typically look for licenses that align with their intended use. Licenses provide legal guidelines for how the software can be used, modified, and distributed. However, not all projects come with clearly stated licenses. Some may have ambiguous or missing licensing information, which can introduce significant risks. We categorize components lacking a license as “unknown license”. The FossID Open Source Audit team found that in 2023 80% of audited applications contained components with Unknown Licenses.
One of the primary concerns associated with using publicly available code without a specified license is the potential legal risk. Without a clear license, developers may inadvertently violate copyright laws by using the software in ways that the original author did not intend. This can result in legal disputes, damage to reputation, endangering intellectual property, and even financial penalties. Developers should understand that just because code is publicly available, it doesn’t mean it’s automatically free to use. The absence of a clear license doesn’t grant users unrestricted rights to the code, and developers should proceed with caution.
80% of applications contain Unknown Licenses
Moreover, using publicly available code with unknown licenses can create uncertainty around intellectual property rights. Developers may find themselves unable to assert ownership over their own code if it incorporates components with unclear licensing terms. This lack of clarity can hinder collaboration, innovation, and the ability to monetize software products.
Developers should understand that just because code is publicly available code, it doesn’t mean it’s automatically free to use. The absence of a clear license doesn’t grant users unrestricted rights to the code, and developers should proceed with caution.
Understanding Copyright Trolls
In addition to unintentional usage violations and unintentionally vague or missing licenses by authors, developers must also be wary of deliberate attempts to exploit ambiguous licensing situations. Copyright trolls, individuals or organizations that aggressively pursue legal action over alleged copyright infringement, may target companies that use publicly available code without clearly defined licenses.
These trolls exploit legal uncertainties to extract settlements or damages from unsuspecting developers, creating a chilling effect on innovation and collaboration.
Best Practices for Safely Incorporating Open Source and Other Publicly Available Code
To mitigate these risks, developers should adopt these best practices to ensure safe integration of open source and other publicly available code:
- Verify License Information: Before incorporating any code into a project, whether truly open source or just publicly available, developers should verify its licensing information. This includes checking for license files, reviewing documentation, and consulting with legal experts if necessary.
- Choose Established Projects: When possible, opt for projects with well-defined licenses and active communities. Established projects are more likely to have clear licensing terms and provide ongoing support and updates.
- Contribute to License Clarity with Caution: If you encounter a publicly available project with unclear licensing information, consider reaching out to the maintainers to request clarification.
IMPORTANT: Exercise caution if you are already using the project, as direct engagement could expose you to legal risks, particularly if the project is monitored by copyright trolls. - Stay Informed: Keep up with developments in open source licensing and legal trends. Understanding the implications of different licenses and potential risks can help developers make informed decisions about their usage of open source and publicly available code.
In short, developers should exercise caution when using publicly available code with unknown licenses. The absence of clear licensing information can introduce legal risks, jeopardize intellectual property rights, and expose projects to exploitation by copyright trolls. By following best practices and staying informed, developers can mitigate these risks and continue to leverage the benefits of open source software in their projects.
How to Reduce Your Exposure to Unknown License Risk
To effectively mitigate the risks associated with unknown licenses, it is vital to invest in a comprehensive Software Composition Analysis (SCA) toolset. As open source security vulnerability and license compliance issues are always changing, look for SCA tools equipped with advanced features, including sophisticated identification algorithms, real-time scanning capabilities, and a dedicated emphasis on precise code snippet detection. These features enable developers to accurately identify and manage unknown license risks within their codebases, ensuring greater transparency and compliance.
Furthermore, if you don’t have in-house staff with expertise in open source license compliance, consider implementing a regularly recurring open source audit conducted by third-party experts. Alternatively, partner with an SCA provider that offers a Virtual Open Source Auditor, which provides access to an expert resource for ongoing support and guidance in navigating the complexities of open source compliance. By leveraging these resources, organizations can effectively mitigate the potential legal and reputational risks associated with “Unknown Licenses”.
