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Free Code, Real Risk: What Every Developer Needs to Know About Open-Source Software Licenses


The software development landscape is evolving fast. As companies adopt open-source tools to save time and money, many business owners are unknowingly taking on legal risk. At Delgado Entertainment Law, we want to help you navigate this shifting terrain.

Here is what you need to know:


1. Just Because It’s Free Does Not Mean It Is Completely Safe


Open-source software is attractive because it is free and widely available. But “free” often comes with conditions. These conditions live inside licenses, legal agreements that determine what you can and cannot do with the code.


2. Copyleft vs. Permissive Licenses


There are two main categories of open-source licenses:


  • Copyleft Licenses (like the GNU General Public License) require that any software you build using that code must also be open-source and shared under the same license.


  • Permissive Licenses (like MIT and Apache) allow you to use, modify, and even commercialize the software with fewer restrictions.


3. The Unlicense: Maximum Freedom, Minimum Protection


One newer license, known as the Unlicense, puts code directly into the public domain. While this offers total freedom for others to use your work, it leaves you with zero protection and no way to monetize what you built.


If your goal is to develop proprietary technology or sell your software, this license is almost never a good fit.


4. AI Adds a New Layer of Legal Complexity


Artificial intelligence is complicating everything further. Many AI tools are trained on open-source code. Developers often assume that using AI-generated code is risk-free, but that is not always the case.


You must read the license terms carefully to determine whether your code can legally be used for commercial purposes or AI training.


5. Bottom Line: Review Before You Release


If you are incorporating open-source code into your product, ask yourself:

  • What license governs the code?

  • Does it allow commercial use?

  • Will it require you to make your work open-source?

  • Are you exposing your company (or yourself) to liability?

Failing to answer these questions upfront could lead to costly disputes later.


6. What To Do Next


At Delgado Entertainment Law, we review and draft software licenses every day. Whether you need a second look at open-source terms or want a custom End User License Agreement (EULA) for your business, we are here to help.


The software developer’s role is changing and legal protection must evolve with it.


Need help reviewing your software license?



Krystle Delgado, Esq.

CEO/Founder


 
 
 
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