Licensing – Can Open Source Libraries Be Used in Internal Closed-Source Projects?

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I m thinking of using iTextSharp, which is licensed under Affero GPL, in an internal closed-source WinForms project. No one outside my company will be using it.

GPL (and Affero GPL as well) typically demands that the source be provided with the binary. Given that this is an internal project, do I need to provide my employees with the source code of the project?

Best Answer

If you confine use of the library to within the walls of your corporation, you do not have to distribute the source (even to your employees), because you are not redistributing (selling or giving away a software product that includes the library) outside of your organization.

The GPL allows you to freely use the code inside a corporation without restrictions, and that includes (by necessity) your ability to prevent your employees (as a matter of company policy) from distributing the source code outside the organization.

From the Gnu Licensing FAQ:

Is making and using multiple copies within one organization or company “distribution”?
No, in that case the organization is just making the copies for itself. As a consequence, a company or other organization can develop a modified version and install that version through its own facilities, without giving the staff permission to release that modified version to outsiders.

However, when the organization transfers copies to other organizations or individuals, that is distribution. In particular, providing copies to contractors for use off-site is distribution.

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