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Open Source Goes Mainstream: How to Manage the Risk

In recent years, numerous articles have been published in legal journals warning of the inherent risks of using open source code in the development of software ' the fear of pirated code, the possible threat of infringement claims, the “viral” effect of the redistribution provisions of the open source license on proprietary code, just to mention a few. Arguments that such risks are merely academic were trounced when SCO Group launched an infringement claim against IBM and its customers. (SCO Group sued IBM, alleging that IBM's Linux operating systems contained pirated UNIX code and related trade secrets allegedly owned by SCO. SCO has also sued two of IBM's major customers.)

Notwithstanding the dire warnings from lawyers and risk managers alike, companies continue to use open source code for their internal use, and to develop products to be sold or licensed to customers. Computer Weekly reported that 46% of firms surveyed by Forrester Research currently use open source, and another 14% plan to use it within the next 12 months. See, Computer Weekly, June 15, 2004, page 22. The acceptance of open source as a viable means to build sophisticated operating systems is also growing in the public sector. See, eWeek, eWeek.com, June 14, 2004. A recent article published in The Economist states: “That `open source' is a good way to make software is beyond question”, and suggests that open source represents a “new post-capitalist economic model” “Beyond Capitalism,” The Economist, June 12, 2004. Larger technology firms such as IBM, Sun, Apple and Novell have even jumped on the bandwagon by “open sourcing” some of their products.

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