TheOpenAnalyst

Increasing numbers of businesses are using open-source software to develop technology ­ – the obvious attraction being the possibility of using, modifying and distributing the open-source code without paying a fee to the developer. But the business and financial risks surrounding the use of open source must also be taken into account because they can have a substantial impact on the value of a business.

A firm’s IT systems and software are among its most important assets. As a result, a company’s rights to protect and commercialise its technology have become more significant when the firm is up for sale or looking for investors. In particular, open-source software can have a dramatic effect on due diligence and deal negotiations. It also prompts companies to add disclosures to their offering memoranda and shareholder communications about business model risks resulting from their use of open source.

Open source’s dark side | Computing

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