Meaning
Technical and legal inspections of a codebase identify all third party components and their associated licensing obligations. An open source software audit occurs most frequently during the due diligence phase of a merger, acquisition or private equity investment. It maps every library and snippet to a specific license to ensure the target company has the right to use and distribute the technology.
Risk Identification
Automated scanning tools compare the source code against massive databases of known open source projects. The open source software audit flags restrictive licenses, such as the General Public License, which might require the company to release its proprietary code to the public. Investors use these findings to demand remediation before the deal closes.
Remediation Strategy
Developers may need to rewrite certain functions or replace problematic libraries discovered during the process. The open source software audit provides a clear list of vulnerabilities and legal conflicts that require immediate attention. Completing these fixes protects the valuation of the intellectual property.
Compliance Management
Long term maintenance of the code involves keeping the inventory of components current as new features are added. A thorough open source software audit establishes a baseline for future governance and policy enforcement. Organizations that maintain this discipline avoid the high cost of emergency audits during a sale.
