AI & Startup Law

Can I use an open model like Llama commercially in my startup?

Many models marketed as 'open source' are actually open-weight, carrying commercial restrictions the OSI does not recognize as open. Meta's Llama Community License, for example, requires a separate license from Meta once the products or services using it exceed 700 million monthly active users, and requires 'Built with Llama' attribution. Mixing models with incompatible terms compounds the risk. Lysinski & Associates P.C. audits every model dependency against its actual license.

Is 'open source' AI actually open source?

Often not — many models marketed as open source are open-weight, carrying commercial restrictions the OSI does not recognize as open.

The label can mislead; the actual license text controls.

Can I use Llama commercially?

Yes, up to a threshold — Meta's Llama Community License permits commercial use, but once the products or services using it exceed 700 million monthly active users you must request a separate license from Meta, and you must carry 'Built with Llama' attribution.

Know where your usage sits relative to that threshold before you scale.

Does fine-tuning an open model change the license obligations?

It can — a fine-tuned adapter on a base like Llama can carry different attribution and naming obligations than inference-only deployment.

Read the derivative and naming terms, not just the headline 'commercial use allowed.'

What happens if I mix models with incompatible licenses?

The risk compounds — incompatible terms across your stack can create conflicting obligations you cannot all satisfy.

Audit every model dependency, not just your primary model.

What is the difference between OSI-open, open-weight, and RAIL?

OSI-open meets the Open Source Definition; open-weight releases the weights but with use restrictions; RAIL and OpenRAIL are use-restricted licenses, not OSI-open.

The label is less reliable than the license text — check the specific use restrictions before relying on a model being 'open.'

Talk to an attorney who builds AI

Your model works and users love it — but if your usage crossed Meta's 700-million-monthly-active-user threshold, your next round just got more complicated. Get a license audit from a lawyer who has read these terms as a builder. (773) 777-9888.

For the firm’s related legal service, see AI IP & training-data counsel.

(773) 777-9888 · info@lysinski.com ·

Frequently asked questions

Can I use Llama commercially?

Yes, under Meta's Llama Community License, but once the products or services using it exceed 700 million monthly active users you must request a separate license from Meta, and 'Built with Llama' attribution is required. Verify the current license terms, which Meta can change.

What is the difference between open-source and open-weight?

Open-source (in the OSI sense) means the license meets the Open Source Definition with no use restrictions. Open-weight means the weights are released but the license imposes restrictions — on commercial scale, fields of use, or attribution — that the OSI does not recognize as open.

Is it risky to use Hugging Face models in production?

The risk depends on each model's specific license, not on the platform. Some models are permissively licensed; others carry commercial or field-of-use restrictions. Audit each model dependency against its actual license terms.

Are RAIL or OpenRAIL licenses 'open source'?

No. RAIL and OpenRAIL are use-restricted licenses — they limit certain uses — which means they are not OSI-open, even though they are often described loosely as 'open.' Treat them as restricted licenses and check the specific prohibited uses.

Which model licenses are safest for a startup?

Permissively licensed models (for example, Apache 2.0 or MIT) generally impose the fewest obligations. Still verify each model's current license, because terms change.

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