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Open source
software licensing
2020
1
Setting the context
Open source software (OSS) is a software programme with a source code that anyone can check, modify, and
update. It is usually developed in a collaborative manner and released under a licence that allows the developer
to inspect, change, and distribute the software to anyone for any purpose.
The way an organisation can use an open source software programme depends on its licence. Hundreds of
di΍erent open source licences are available; each has its own terminologies and restrictions.
The two main categories of OSS licences are permissive and copyleft.
Open source software licensing | Setting the context
Introduction: What is open source software?
Examples
• Berkeley Software Distribution (BSD) licence
• Apache
Examples
• GNU General Public Licence
• Eclipse
•
Minimal restrictions on licence use
•
Allowed to use the source code for any purpose
•
Attribution or acknowledgement for creators /
authors is necessary
• Can be a part of proprietary software pro-
grammes
• Allowed to use the source code for any purpose
•
•
Necessary to make an open source code for
others to use it freely
•
No further restrictions can be placed on the code,
distributed to the community as received
Permissive Copyleft
Attribution or acknowledgement for creators /
authors is necessary
2
With an increase in the use of OSS in organisations, managing and optimising OSS e΍ectively
is important. This can help organisations manage risk, compliance, and security vulnerability
associated with open source components consumed internally.
Introduction: Current
situation overview
• About 80GL΍erent types of OSS licences
are available; each has its own terminolo-
gies and restrictions.
• According to Gartner, OSS is used by
more than 95% IT organisations world-
wide.
• Through 2022, the percentage of open
source within IT portfolios relative to
either homegrown or licensed third-party
solutions will increase at a compound
annual growth rate (CAGR) of 30%.
Source
What innovation leaders must know about open-source software:
https://www.gartner.com/document/3956651?ref=solrAllrefval=248155840
• After the COVID-19 crisis, most
organisations would have remote workers
who can download any software with
minimal restrictions.
• More organisations are shifting to easily
accessible OSS to reduce dependency
on paid proprietary tools.
• However, OSS has its own set of
restrictions and security issues that
need monitoring.
Did you know? Whyis it in focus now?
Open source software licensing | Introduction
Open source software come with certain requirements, which when not followed can lead to legal, operations
and security issues.
Open source software licensing requirement/rationale
IP infringement
risk: licensing
obligations by
using open source
licence for patent
provisions
Restrictions
on use as
proprietary
licence: It can
mandate the
release of the
source code as an
OSS, and provide
rights to modify
and distribute at no
charge.
Derivative
work for copyleft
licences: It needs to
be licensed under
the same OSS
licence
Copyright
notices: that are
required to be
included in the
developed code
are found in the
licence text and
source code ȴles
Security risk:
It indicates
vulnerabilities
associated with
source code
components.
Business need for OSS compliance
3
Solution overview
Deloitte leverages a tool that helps to analyse the source code and builds a standardised
and repeatable process to enhance Free and open-source software (FOSS)
inventory management.
Workȵow for the code review
Open source software licensing | Solution overview
Flavours of OSS Compliance Reviews
OSS EULA analysis
Assisting organisations in manual review of Open
Source and freeware software’s End User License
Agreement (EULA).
Platform/Application License Implication
License review to identify license implications for
open source software components that are a
part of a platform or application.
Source Code Analysis
Consistent monitoring of OSS software code during
product/application development process for
internal consumption or developing commercial
applications.
01
03
02
Acquisitions involving
OSS platform
Organisations shifting
from proprietary to OSS
software base
Software applications/
product development
organisations
OSS included as a part of
the review of entire the
SAM asset base
Carry out due diligence of
the application platforms
and identify any potential
risks posed by software
licences used in building
the platform.
Provide consulting services
on which types of OSS
licences can be used in
developing in-house and
proprietary software.
Monitor OSS software code
consistently during the
complete cycle of product/
application development
process.
Provide a view of the OSS
included in the deployment
footprint and risk
assessment of the
installed OSS.
Areas where we help organisations use OSS
How can we help
8
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company
OLPLWHGEJXDUDQWHHȊ'77/ȋ

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Open source software license

  • 2. 1 Setting the context Open source software (OSS) is a software programme with a source code that anyone can check, modify, and update. It is usually developed in a collaborative manner and released under a licence that allows the developer to inspect, change, and distribute the software to anyone for any purpose. The way an organisation can use an open source software programme depends on its licence. Hundreds of di΍erent open source licences are available; each has its own terminologies and restrictions. The two main categories of OSS licences are permissive and copyleft. Open source software licensing | Setting the context Introduction: What is open source software? Examples • Berkeley Software Distribution (BSD) licence • Apache Examples • GNU General Public Licence • Eclipse • Minimal restrictions on licence use • Allowed to use the source code for any purpose • Attribution or acknowledgement for creators / authors is necessary • Can be a part of proprietary software pro- grammes • Allowed to use the source code for any purpose • • Necessary to make an open source code for others to use it freely • No further restrictions can be placed on the code, distributed to the community as received Permissive Copyleft Attribution or acknowledgement for creators / authors is necessary
  • 3. 2 With an increase in the use of OSS in organisations, managing and optimising OSS e΍ectively is important. This can help organisations manage risk, compliance, and security vulnerability associated with open source components consumed internally. Introduction: Current situation overview • About 80GL΍erent types of OSS licences are available; each has its own terminolo- gies and restrictions. • According to Gartner, OSS is used by more than 95% IT organisations world- wide. • Through 2022, the percentage of open source within IT portfolios relative to either homegrown or licensed third-party solutions will increase at a compound annual growth rate (CAGR) of 30%. Source What innovation leaders must know about open-source software: https://www.gartner.com/document/3956651?ref=solrAllrefval=248155840 • After the COVID-19 crisis, most organisations would have remote workers who can download any software with minimal restrictions. • More organisations are shifting to easily accessible OSS to reduce dependency on paid proprietary tools. • However, OSS has its own set of restrictions and security issues that need monitoring. Did you know? Whyis it in focus now? Open source software licensing | Introduction Open source software come with certain requirements, which when not followed can lead to legal, operations and security issues. Open source software licensing requirement/rationale IP infringement risk: licensing obligations by using open source licence for patent provisions Restrictions on use as proprietary licence: It can mandate the release of the source code as an OSS, and provide rights to modify and distribute at no charge. Derivative work for copyleft licences: It needs to be licensed under the same OSS licence Copyright notices: that are required to be included in the developed code are found in the licence text and source code ȴles Security risk: It indicates vulnerabilities associated with source code components. Business need for OSS compliance
  • 4. 3 Solution overview Deloitte leverages a tool that helps to analyse the source code and builds a standardised and repeatable process to enhance Free and open-source software (FOSS) inventory management. Workȵow for the code review Open source software licensing | Solution overview Flavours of OSS Compliance Reviews OSS EULA analysis Assisting organisations in manual review of Open Source and freeware software’s End User License Agreement (EULA). Platform/Application License Implication License review to identify license implications for open source software components that are a part of a platform or application. Source Code Analysis Consistent monitoring of OSS software code during product/application development process for internal consumption or developing commercial applications. 01 03 02 Acquisitions involving OSS platform Organisations shifting from proprietary to OSS software base Software applications/ product development organisations OSS included as a part of the review of entire the SAM asset base Carry out due diligence of the application platforms and identify any potential risks posed by software licences used in building the platform. Provide consulting services on which types of OSS licences can be used in developing in-house and proprietary software. Monitor OSS software code consistently during the complete cycle of product/ application development process. Provide a view of the OSS included in the deployment footprint and risk assessment of the installed OSS. Areas where we help organisations use OSS How can we help
  • 5. 8 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company OLPLWHGEJXDUDQWHHȊ'77/ȋ
  • 6. LWVQHWZRUNRIPHPEHUȴrms, and their related entities. '77/DQGHDFKRILWVPHPEHUȴrms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www. GHORLWWHFRPDERXWIRUDPRUHGHWDLOHGGHVFULSWLRQRI'77/DQGLWVPHPEHUȴrms. This material is prepared by Deloitte Touche Tohmatsu India LLP (DTTILLP). This material (including any information contained in it) is intended to provide general information on a particular subject(s) and is not an exhaustive treatment of such subject(s) or a substitute to obtaining professional services or advice. This material may contain information sourced from publicly available information or other third party sources. DTTILLP does not independently verify any such sources and is not responsible for any loss whatsoever caused due to reliance placed on information sourced from such sources. None of '77Ζ//3'HORLWWH7RXFKH7RKPDWVX/LPLWHGLWVPHPEHUȴrms, or their related entities (collectively, the “Deloitte Network”) is, by means of this material, rendering any kind of LQYHVWPHQWOHJDORURWKHUSURIHVVLRQDODGYLFHRUVHUYLFHVRXVKRXOGVHHNVSHFLȴc advice of the relevant professional(s) for these kind of services. This material or information is not LQWHQGHGWREHUHOLHGXSRQDVWKHVROHEDVLVIRUDQGHFLVLRQZKLFKPDD΍ect you or your EXVLQHVV%HIRUHPDNLQJDQGHFLVLRQRUWDNLQJDQDFWLRQWKDWPLJKWD΍ect your personal ȴnDQFHVRUEXVLQHVVRXVKRXOGFRQVXOWDTXDOLȴed professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person or entity by reason of access to, use of or reliance on, this material. By using this material or any information contained in it, the user accepts this entire notice and terms of use. ©2020 Deloitte Touche Tohmatsu India LLP. Member of Deloitte Touche Tohmatsu Limited Key Contacts Rohit Mahajan President – Risk Advisory rmahajan@deloitte.com Gautam Kapoor Partner, Risk Advisory gkapoor@deloitte.com Tarun Kaura Partner, Risk Advisory tkaura@deloitte.com Gaurav Shukla Partner, Risk Advisory shuklagaurav@deloitte.com Ashish Sharma Partner, Risk Advisory sashish@deloitte.com