Managing commercial risks in open source software licensing

Legal context: The article reviews the commercial risk allocation clauses intypical open source licence terms and discusses their enforceabilityand implications. Key points: The enforceability of warranty disclaimers and limitation ofliability clauses in common open source licence terms is questionable,particularly in a cross-border context, and commercial licensorsshould take additional steps to protect themselves from down-streamrisks. Practical significance: Open source software presents a number of unusual commercialissues, because it is available free of charge and the providerstry to disclaim warranties and liabilities. End users and resellershave to adjust their own in- and out-licensing models to accommodatethis situation.