Legal Updates

Open Source Issues in Mergers & Acquisitions

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According to Ernst & Young’s "Global Technology M&A Update: October-December 2014," global merger and acquisition deals in the technology sector are achieving post-dotcom-bubble records. Deal volume continues to grow, reaching 959 deals in the fourth quarter of 2014 and an aggregate deal value of $237.6 billion for the year – higher than any year on record except 2000.  When this market activity is viewed in tandem with the fact that the overwhelming majority of software engineers and developers today incorporate open source software into their work, technology companies that intend to take advantage of the current market to grow their business through mergers and acquisitions should fully understand and address the issues surrounding the use of open source software and its potential impact on deal-making.

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