Are you a company worried about the legal risks associated with open-source software? Perhaps you provide the software, or you want to use it.

It is best to speak to a lawyer about how to avoid legal action from the developer before you start using intellectual property.

If you are not located in these three cities, you can still contact us. We might be able to connect you with an attorney we trust enough to recommend.

Many companies and users use open-source software these days. However, almost no one reads the user agreement before starting their project. There will be restrictions on what you can and cannot do with the open-source software.

Open-source software risks

Let’s assume you use a company’s software and build a great product. There are likely no problems at this point. But let’s say you raise millions of dollars, build a great company, and then sell your product to another company for $50 million.

Large companies have lawyers constantly searching for violations of their intellectual property. If you violated the open-source software agreement (which you didn’t read), that company will likely sue you for $50 million.

Even worse, if they learn that the company is going to buy you for $50 million, they might want a settlement or file a lawsuit. If the company that is purchasing you learns about an IP dispute, it will likely abandon the deal. This could cost you $50 million!

Security risks and best practices

This is why it’s important to have a lawyer review everything before you start your company. If you want to sue someone or are being sued for violating a commercial contract, you can contact us. Our lawyers can assist you.

The scary thing about IP lawsuits is that they are normally only filed when a company is successful. It doesn’t make sense to sue a company that is likely to fail on its own.

Some companies file lawsuits against others just to put financial pressure on them. You need to ensure tight legal compliance.

Open-source vs proprietary software

A lawyer can also help you protect your proprietary code, ensure you understand your licensee’s obligations, and send out copyright notices.

Breach of contract lawsuits is very serious. Even if there wasn’t a copyright infringement case, they might sue you for breach of contract.

These lawsuits can go on for years. You should think about purchasing legal insurance. You could also set aside money for legal disputes in a separate bank account you don’t touch. Your company should have a minimum of $50,000 set aside.

If you win your lawsuit, you might be able to get your costs reimbursed. If you are the one who has had your rights or contract violated, do not assume that suing someone is a waste of time. What is the point of having a contract if you do not enforce it?

Open Source Software Legal Risks

If you are a company that purchases a product that violates copyright or open-source agreement, you will also likely be sued. That is why you should speak to a lawyer before buying anything. You don’t want to get involved in a lawsuit worth millions of dollars (or pay millions) because of something someone else did.

You must ensure your proprietary software use follows the licensing conditions. Open-source software has great benefits, including many cost benefits and more freedom than companies like Microsoft might offer.

When you are a cash-strapped start-up, you likely don’t have the resources to develop your software. You need to understand the risks. If you have in-house developers, you likely won’t develop too much of your code.

Open Source Versus Proprietary Software

You can build their code into your code. In addition to the legal risks associated with open-source software, there are cybersecurity risks. You need to ensure that the code is secure and maintained.

There are many different coding styles, and you are now taking some unknown code and putting it into your own. You are then selling this to your clients. What happens if this causes damage to your clients?

You can count on being sued. It’s important to speak to lawyers about the legal risks of open-source software. You can also contact us to start an action or defend against a lawsuit.

It can get risky if you don’t keep track of what open-source components you are using. When you don’t know if there was security around the coding, and then you are selling it, you haven’t done risk management on your code. You can also destroy your reputation as a company.

Spending Money On Lawsuits

You need to consider the cost benefits of open-source technology versus the risk of spending a lot of money on lawsuits. Security vulnerabilities left unchecked can damage your company.

Almost all applications use open source, and the average amount of open-source technology in applications is around 50%. What happens if the open-source technology comes from Russia or North Korea?

There are examples out there where open-source vulnerabilities affected 140 million people.

In conclusion, a litigation trial lawyer must be ready to help you. You should get legal advice when agreeing to any terms of a contract.