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In the age of open source and large scale outsourcing, both assuring the quality
of software and taking it to market means ascertaining its legal compliance
as well.
Numerous legal cases in recent years have highlighted the business risks and
the enormous costs incurred when this is not done properly. These costs stem
from involvement in judicial procedures, software recalls, fixing legal compliance
issues post-release, and missed market opportunities caused by delays in the
development process. Other consequences include lowered valuations in due diligence
processes triggered by customers, potential or existing investors, mergers and
acquisitions, and other major transactions.
Software is a pervasive element in most products and processes, and over time,
its sources have multiplied. Sources include internal developments, suppliers
of sub-systems and chips, outsourced development contractors, open source repositories
and the previous work of the developers themselves. Software, unlike hardware,
is easily accessed, replicated, copied and re-used.
Open source software has become a significant player in most software development,
thanks to the wide availability of source code, its apparent free cost and its
high degree of stability and security. Open source code is generally free on
the surface, but it's not without obligations. It comes laden with licensing
and copyright conditions which are enforceable by law -- sometimes with dire
effects for users who are not careful to validate the pedigree of the code in
their products; i.e. the origin and any associated obligations of all software
components.
This doesn't mean that leveraging outsourcing and/or open source software is
to be avoided. The issue is not with the use of open source, but with unmanaged
adoption and lack of proper care to the copyright and licensing obligations
it entails. It's paramount that industrial managers validate the IP cleanliness
of their products and services and ascertain that they meet all legal obligations
before they reach the market.
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