I wrote a library and I would like to make it open-source, but I am afraid of others stealing it and taking ownership of it. I am very new to licensing software.
What should I do and what are the steps in licensing my software.
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GNU Library License
Read LGPL.
Alternatives
There are many other licenses from which you can choose.
Application
Usually it is sufficient to include documentation in the header of all source files that refers to the licensing conditions. As well, it is common to include a text file containing information about how the software can be used.
Software Theft
Once publish your software under an open-source license, typically that grants everyone the right to use the code for any purpose they desire. Normally you needn’t be concerned because that is the point of releasing the source code. In fact, you want to encourage others to take your software and use it. Something that is given away for free cannot be stolen.
Ownership
The real concern here, in my mind, would be people taking the software and claiming it as their own. It happens (DVD Jon, Microsoft, and SCO to name a few), and there is not much people can do about it.
If your concern is about people branching your software to create other versions, that seems more like cause for celebration. It implies that your software has been well received, so well that other people want to take it in directions that they feel solve a different niche of problems. This should be encouraged.
No matter what happens, though, you will retain ownership of whatever you produce under copyright law (at least in Canada and the United States).
Remember to consult your friendly neighbourhood IT-specialized lawyer for advice.
Custom License
Also, even if you release the source code under an open-source license, it does not mean that that is the only license you may associate with the source code. It is entirely possible that someone will approach you requesting different terms. For example, they might want to create and share a proprietary solution that uses your technology, without having to release their changes to the world. You might choose to offer them a commercial license under mutually agreeable terms and conditions.
Be careful, though: third-party contributions donated to your project, under the terms of the open-source license, are not yours to distribute under a different, custom license. If you want the flexibility of creating a custom license, you must have the ability to identify and extract your personal contributions.