Black Duck, the Waltham, Mass. company that tracks how companies use software in order to protect open source code and intellectual property rights for software makers, has raised $12 million more in a third round funding.
The round was led by Focus Ventures, a Silicon Valley late-stage venture capital firm.
Blackduck has now raised $29 million. Previous investors participated in the round, including Fidelity Ventures, Flagship Ventures, General Catalyst Partners, Intel Capital and SAP Ventures.
A spokesperson explained the reasoning behind the company’s software compliance product as follows:
More enterprises today are developing with open source code, and blending that code with other third party or proprietary applications. While there are many benefits to this approach (faster development and time to market) it is also creating new challenges with respect to the licensing obligations attached to all that code.
Black Duck helps Fortune 500/Global 500 companies track software origins, ownership and licensing requirements and manage these obligations in advance of M&A activity, or as part of their overall compliance process, so they can catch and resolve intellectual property and compliance issues as they occur during the development process. If a company finds itself in violation of open source policies, consequences can include law suits over software intellectual property, product recalls, or failed merger/acquisition.
The company says more than 100 companies are using Black Duck.