Open Source License Scanning: A Complete Guide

Building software with open-source components isn’t always the best idea. Licenses dictate how you can use, change, or share these components. And if you dismiss them, you could find yourself paying enormous fines, losing control of your IP or fighting a legal battle in court.

Open-source license scanning solves that problem by letting you know how you can use and share software so you can take care of any potential issues early.

Let’s break down why license scanning is essential and how to make it a part of your development process.

What is Open Source Licensing?

When developers release software under an open-source license, they say, "You can use it, tweak it, or share it—but here’s the rules to follow."

There are two common licenses: 

• Permissive licenses are pretty liberal and allow you to alter and use the code for closed-source projects. Example: MIT License
• Copyleft licenses are pretty restrictive. Even if you modify the software, you must make it available under the same open-source license. This can be a problem if you’re building proprietary software. Example: GPL

A license scanning tool finds the licenses associated with your software and lets you know your obligations.   

Why Open Source License Scanning Matters

Your development cycles can be made shorter

 with open-source components but the legal and operational challenges may not be worth that speed. All open-source licenses have specific conditions that need to be met—like attribution, restrictions on commercial use, or disclosures. 

Not meeting those conditions could mean an injunction against distribution, jeopardizing your proprietary code, or even losing the dev community's and your customers' trust.License scanning tools let you automatically detect and document licenses, conflicts, or incompatible licenses and offer clear visibility to improve accountability.

SBOM Scanning vs. License Scanning: What’s The Difference?

SBOM scanning helps manage security risks, and license scanning lets you stay current with legal requirements. 

SBOM Scanning

An SBOM (Software Bill of Materials) scan analyzes your software, spots outdated or insecure libraries with known exploits, and identifies the source and version of each component.

For instance, an SBOM scan might flag a dependency exposed to a critical vulnerability like Log4Shell. With this information, teams can act quickly—patching or replacing the library to de-risk your project.

License Scanning

License scanning helps teams know what’s required, like attribution or sharing source code, and addresses issues when licenses have incompatible terms.

For example, a license scan might reveal a library under the GPL, which mandates that your entire project be made available under GPL. You could lose control of your IP if your software includes proprietary elements.

Bringing SBOM and License Scanning Together

SBOM scanning answers the “what”—what’s in your software and where the risks lie. License scanning addresses the “how”—how you’re allowed to use those components. 

Say an SBOM scan flags a library with a known vulnerability. At the same time, a license scan could show that the library is governed by a restrictive copyleft license. Using this insight, your team can replace the library with a secure, permissively licensed alternative.

Common License Compliance Challenges

Open-source software offers many advantages like flexibility and efficiency but also comes with various licensing issues. 

Managing Multiple Licenses in Complex Software Ecosystems

A single software project can incorporate scores of open-source components—each under a unique license. This results in a web of responsibilities that developers have to track right from attribution to redistribution rights.

For example, a project developed using libraries under MIT, Apache 2.0, and GPL licenses has to abide by different sets of rules. While the MIT license only requires you to credit the creator, the GPL specifies that derived works must also be made available under GPL. 

Handling Dependencies with Conflicting Licenses

Dependencies can cause conflicts that aren’t immediately obvious. Some licenses, like the GPL, require derived works to be open source. Derived works refer to creations that are built upon or modified from the original copyrighted material.

Others, like the MIT license, allow proprietary use. This means that you are permitted to use the licensed material in ways that are not openly shared or distributed under the same license terms. 

These terms are conflicting and can pose a considerable challenge during the development process. 

An old but popular example is BusyBox, an open-source utility licensed under GPL. Some companies incorporated it into proprietary software but violated its terms, resulting in legal consequences. This isn’t a problem of the past. In 2021, Vizio faced a lawsuit for allegedly violating copyleft open-source licenses.

Meeting License Obligations

Every license has specific conditions to be met to use the license legally. These can include:

• Properly giving credit to the original authors.
• Including the full text of the license with your software.
• Sharing source code for certain types of modifications.

For example, if you use components under the Apache License 2.0, you must correctly attribute the authors and comply with the patent clauses. 

4 Best Practices for Effective License Scanning

License compliance needs to be baked into your development process. Here’s how to make license scanning both seamless and effective.

1. Automate License Scanning in Your Build Process

It is impossible to monitor licenses manually when modern software contains dozens of open-source components. Building automated scanning tools into your build pipeline helps you spot conflicts as soon as new dependencies are added, helping teams fix issues immediately. 

2. Review Licenses Regularly

Open-source components are not static files that are left unchanged. New dependencies get added, older ones are updated, and licensing terms change occasionally. Checking licenses during each significant phase of your software development lifecycle prevents compliance from being an afterthought.

3. Use Tools to Handle Conflicts

Not all licenses are compatible. License management tools can find conflicts—like a restrictive GPL dependency in a proprietary project—and help teams enforce policies to prevent non-compliance.

4. Collaborate with Legal Experts

Legal teams help disentangle complex licensing obligations. They can explain attribution requirements, redistribution rights, or patent clauses. Engaging them early prevents compliance from becoming a bottleneck later.

Proactive license management creates an efficient, transparent development process that aligns with your organization.

How to Incorporate License Scanning In Your Development Workflow

Your development process doesn’t have to suffer because of license compliance. Incorporate scanning tools and policies into your workflows to catch issues early and keep your codebase on track. Here’s how to do it:

Add License Scanning to Your CI/CD Pipelines

If you include license scanning into your CI/CD pipeline, every new dependency will get reviewed as code is built and deployed. License scanning tools can run scans automatically with each commit made and flag any licensing issues before they reach prod.

Define Policies to Flag Problematic Licenses

If you’re building proprietary software, not all licenses are right for your project. Establish clear rules in your scanning tools to identify licenses—like copyleft ones that impose redistribution conditions—so they don’t create development bottlenecks.

Automate Regular License Audits

Automate license audits to check for changes in their codebase and stay compliant as new versions or components are introduced. Regular scans ensure your software meets internal policies and external requirements.

Simplifying Open-Source License Compliance with Codacy

Managing open-source licenses is overwhelming, but Codacy makes it easier. With a full suite of tools for modern development teams, Codacy helps you maintain security and compliance without compromising your development. 

Codacy’s platform includes powerful features like:

• Software Composition Analysis (SCA): Identifies vulnerabilities in open-source libraries.
• Static Application Security Testing (SAST): Detects security issues in source code.
• Secrets Detection: Flags exposed API keys and sensitive data.

Our security and risk management dashboard gives you a complete view of your project’s compliance and security posture so you can take the proper course correction measures.

Codacy’s upcoming license scanning feature will automatically detect licenses in your dependencies, surface conflicts, and help you meet licensing obligations with near zero effort.

Ready to simplify license compliance? Start using Codacy’s code security tools today and stay tuned for the upcoming license scanning feature.

Sign up for your free trial today or book a demo to talk to one of our code quality and security experts.