What are the licensing and data-privacy implications?

How It Works:

Closed-source licenses stipulate usage limits, IP rights, and data handling vendors typically provide data-processing addenda for compliance with GDPR, HIPAA, etc.

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Key Benefits:

• Legal clarity: Well-defined terms and indemnities.
• Data governance: Vendor-audited controls and encryption.
• Risk reduction: Minimal exposure to license violations.

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Real-World Use Cases:

• Healthcare records: HIPAA-compliant AI analysis.
• Financial reporting: GDPR-aligned data processing.