Open Source — What You Need to Know

Open Source is software with open-source code, meaning that any user may use it without infringing copyright. Such solutions are distributed under the terms of specific licences.

It helps to accelerate development and reduce costs; however, it may also entail certain risks, for example:

• risks of disputes with authors due to non-compliance with licence terms;
• an impact on the outcomes of Legal Due Diligence when raising investment (where “copyleft” licences are used), as well as the need to give representations and warranties in relation to the use of Open Source.

Certain licences (so-called “copyleft” licences) may impose specific restrictive conditions, for example, an obligation to disclose the source code.

To minimise risks, it is important to understand which licences may create restrictions. In this memo we have collected key information and examples of such licences.

Authors: Svetlana Gordey, Darya Gordey.