June 3, 2019
Authored by: BCLP and John Bush
This post is the second in a two-part series concerning emerging uses and considerations involving application programming interfaces, or “APIs.”
Most retailers and other large and mid-size businesses, and even some small businesses, utilize public APIs:
- Businesses who vet their employees against a government database may be doing so through an API.
- Businesses that rely on vendors to provide data or electronic services (such as HR and payroll management) may be receiving them through APIs.
- Businesses that maintain databases associated with their website or applications, likely communicate with that database through an API.
- Businesses that provide electronic data or electronic services are likely doing so through an API. When the API license is presented as a take-it-or-leave-it agreement, the terms are often written to protect the provider from any liability for an offering from which the provider derives no direct financial benefit.
Still, regardless as to whether the license is free, prospective business licensees need to consider at least the following: