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What should I put in the license field of packagejson if my code is only for use by the company I work for

September 19, 2026

📂 Categories: Node.js
What should I put in the license field of packagejson if my code is only for use by the company I work for

When developing internal tools or proprietary software within a company, understanding how to properly manage the license field in your package.json file is crucial. This field is more than just a formality; it communicates important information about the usage rights of your code, even when it’s intended solely for internal use. Incorrectly specifying the license can lead to confusion or even unintended legal implications down the road. It’s important to avoid leaving it blank, as this can imply that the code is not licensed at all, which may restrict its use even within the organization. This article delves into what you should put in the license field of package.json if your code is only for use by the company you work for, providing clarity and best practices for managing internal code repositories. We’ll explore various options, from using a proprietary license to specifying a non-standard license, ensuring your internal projects are managed effectively and legally.

Understanding the Importance of the License Field

The license field in package.json is designed to declare the licensing terms under which a software package is distributed. While typically associated with open-source projects, it holds significance even for internal, proprietary code. Its primary purpose is to explicitly state the permitted uses, restrictions, and obligations related to the code. For internal projects, it clarifies that the code is not for public distribution and outlines the acceptable usage within the company. Leaving this field blank or using a generic open-source license inappropriately can lead to ambiguity and potential misuse of the code. For instance, if a developer leaves the field blank, other employees might mistakenly assume the code is free to use in other projects without any restrictions, potentially leading to violations of internal policies or even legal issues if the code inadvertently leaks outside the company. Therefore, a clearly defined license, even a custom one, is crucial.

Furthermore, version control systems like Git often display the license information, making it immediately visible to developers. This visibility helps to prevent accidental misuse and ensures that everyone is aware of the code’s intended use. For example, GitLab and GitHub can automatically detect and display licenses, providing a quick reference point for developers. According to a study by the Linux Foundation, clearly defined licenses reduce legal ambiguities and foster better collaboration within development teams Linux Foundation. By specifying a custom or proprietary license, you are proactively setting the boundaries for your internal code, aligning it with your company’s policies and protecting your intellectual property. The license field, therefore, serves as a critical communication tool, ensuring that the code is used as intended and that everyone is on the same page regarding its usage rights.

In short, the license field is not just a formality for open-source projects; it’s an essential element for managing internal code, clarifying usage rights, and preventing potential misuse. By clearly defining the license, you protect your company’s intellectual property and ensure that your internal projects are used as intended. Ignoring this field can create ambiguity and lead to unforeseen legal or policy violations. Therefore, taking the time to properly specify the license is a crucial step in managing your internal code repositories effectively.

Options for the License Field in Internal Projects

When deciding what to put in the license field for internal projects, several options exist, each with its own advantages and considerations. The most common approaches include using a proprietary license string, specifying “UNLICENSED”, or employing a custom license document. The best choice depends on your company’s specific policies, the level of control you want to maintain over the code, and the clarity you wish to provide to your developers. Each of these options will prevent the code from being accidentally used as if it were open-source code.

Using a proprietary license string is a straightforward way to indicate that the code is not for public use. You can use a simple string like “Proprietary” or “[Your Company Name] Proprietary.” This clearly signals that the code is subject to internal usage restrictions. Specifying “UNLICENSED” is another common practice, explicitly stating that the code is not licensed under any open-source or standard license. This option is particularly useful when you want to emphasize that the code is not intended for distribution outside the company. Alternatively, you can create a custom license document that outlines the specific terms of use within your organization. This approach offers the most control, allowing you to tailor the license to your company’s unique requirements. For example, you might specify that the code can only be used in certain projects or by specific teams. This custom license file can be stored in the project repository, and the license field can point to the file name, such as “SEE LICENSE IN LICENSE.md”.

Consider the following factors when choosing an option: company policy, desired level of control, and clarity for developers. If your company has a standard approach for internal code, adhere to that. If you need to maintain strict control over the code’s usage, a custom license document is likely the best choice. If you want a simple and clear indication that the code is not for public distribution, “Proprietary” or “UNLICENSED” may suffice. Remember to document your choice and communicate it to your development team to avoid confusion and ensure compliance with company policies. A well-defined license, even for internal projects, is a critical component of good software governance.

Step-by-Step Guide to Setting the License Field

Setting the license field in your package.json file is a simple process, but it’s crucial to follow the correct steps to ensure that the license information is properly recorded and communicated. This guide provides a step-by-step approach to setting the license field, covering both basic and advanced scenarios. Before getting started, make sure you have node.js and npm installed on your computer. If you use a different package manager, such as yarn or pnpm, the commands might be slightly different.

  1. Open your project’s package.json file: Locate the package.json file in the root directory of your project and open it with a text editor.
  2. Locate the license field: Search for the license field within the package.json file. If the field doesn’t exist, you can add it manually.
  3. Set the license value: Depending on your chosen approach, set the license field to the appropriate value. For a proprietary license, use a string like “Proprietary” or “[Your Company Name] Proprietary.” To specify that the code is unlicensed, use “UNLICENSED”. If you’re using a custom license document, set the license field to “SEE LICENSE IN LICENSE.md” (or the name of your license file).
  4. Create a custom license file (if applicable): If you’re using a custom license document, create a file named LICENSE.md (or your chosen file name) in the root directory of your project. Write the terms of your custom license in this file.
  5. Save the package.json file: Save the changes to your package.json file to persist the license information.
  6. Verify the license information: Double-check that the license field is set correctly and that the custom license file (if any) contains the correct terms.

This process ensures that the license information is accurately recorded in your project’s package.json file. By following these steps, you can effectively communicate the usage rights of your code and prevent potential misuse. Remember to document your choice and communicate it to your development team to ensure compliance with company policies and avoid confusion.

Best Practices and Considerations

When managing the license field for internal projects, several best practices and considerations can help you ensure clarity, compliance, and effective code governance. These practices range from choosing the right license option to documenting your decision and communicating it to your team. The goal is to create a clear and consistent approach to managing internal code repositories.

First and foremost, always document your choice of license and the reasons behind it. This documentation should be easily accessible to all developers working on the project. For example, you can include a section in your project’s README file explaining the license and its implications. This helps to avoid confusion and ensures that everyone understands the usage rights of the code. Secondly, communicate the license information to your development team. This can be done through team meetings, training sessions, or internal documentation. Make sure that everyone is aware of the company’s policies regarding internal code and how to properly use the license field. According to a survey by GitHub, projects with clear and accessible license information are more likely to be used and contributed to GitHub. This highlights the importance of communication and transparency, even for internal projects. Finally, regularly review and update your license practices. Company policies and legal requirements may change over time, so it’s important to ensure that your license practices remain current and compliant. This includes reviewing your custom license documents and updating the license field in your package.json files as needed.

Here are some key points to remember:

  • Always document your choice of license and the reasons behind it.
  • Communicate the license information to your development team.

By following these best practices, you can effectively manage the license field for internal projects, ensuring clarity, compliance, and effective code governance. Remember that a well-defined license, even for internal projects, is a critical component of good software governance.

Here’s a quick recap of what we’ve covered:

  • Understanding the importance of the license field, even for internal projects.
  • Choosing the right license option: proprietary string, “UNLICENSED”, or custom document.
  • Following a step-by-step guide to set the license field correctly.
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If your code is exclusively for internal use within your company, the most appropriate value for the license field in your package.json file is either “UNLICENSED” or a proprietary license string, such as “[Your Company Name] Proprietary”. Specifying “UNLICENSED” explicitly states that the code is not licensed under any open-source or standard license, ensuring it isn’t mistakenly treated as such. Alternatively, a proprietary string clearly indicates the code is subject to internal usage restrictions and not intended for public distribution. Both options prevent accidental misuse and align with internal policies.

Internal link: Learn more about software development best practices.

LSI Keywords: internal code repository, proprietary software, license management, package.json, UNLICENSED, software governance, custom license.

Example: Let’s say “Acme Corp” develops an internal HR application. They should set the license field to “Acme Corp Proprietary” or “UNLICENSED” in their package.json.

Properly managing your license field helps protect your company’s intellectual property WIPO.

Remember that seeking legal advice is always recommended for specific situations Cornell Law School.

Remember to regularly check your code’s license as company policy changes.

FAQ Section:

What happens if I leave the license field blank?
Leaving the license field blank can lead to ambiguity and potential misuse of the code. It may imply that the code is not licensed at all, which could restrict its use even within the organization.
Can I use an open-source license for internal code?
Using an open-source license for internal code is generally not recommended, as it grants usage rights that may conflict with your company's policies. It's better to use a proprietary license string or specify "UNLICENSED".
What is a custom license document?
A custom license document is a file that outlines the specific terms of use for your internal code. It allows you to tailor the license to your company's unique requirements, such as specifying that the code can only be used in certain projects or by specific teams.
Whether you choose "UNLICENSED" or a custom approach, the key takeaway is proactive management. Review your internal projects, set the `license` field appropriately, and communicate the policy to your development teams. This not only safeguards your company's intellectual property but also fosters a culture of clarity and compliance. Don't wait until a policy violation occurs; take action today to ensure your internal code is properly licensed and protected. Consider reviewing your existing projects and updating their `package.json` files to reflect the correct licensing information. Explore creating a standardized internal licensing policy for your organization to streamline the process and ensure consistency across all projects. By taking these steps, you’ll build a stronger foundation for your internal development practices and minimize potential risks. **Question & Answer :** NPM 2.11.3

I’m building a library in Node. This library is only for use by the company I am currently working for. I think this means that the license is “None”. But when I npm init it wants me to use an SPDX License. “None” or “Unlicensed” are not valid options.

npm WARN package.json <a class="__cf_email__" data-cfemail="1773766376487a78797e6378657e79704876677e572739263927" href="/cdn-cgi/l/email-protection">[email protected]</a> license should be a valid SPDX license expression

There is some discussion around this on the NPM GitHub issue tracker but I can’t find anything that definitively answers this. Perhaps NPM doesn’t support this concept, but that seems odd.

What should I put for this field in this case? I’d like to get rid of the npm warnings related to this.

While the docs say that UNLICENSED is valid, it still gives a warning:

$ cat package.json | grep licen "license": "UNLICENSED", $ npm install npm WARN package.json <a class="__cf_email__" data-cfemail="99fdf8edf8c6f4f6f7f0edf6ebf0f7fec6f8e9f0d9a9b7a8b7a9" href="/cdn-cgi/l/email-protection">[email protected]</a> license should be a valid SPDX license expression 

Use UNLICENSED per the npm docs:

Finally, if you do not wish to grant others the right to use a private or unpublished package under any terms:

{ "license": "UNLICENSED" } 

This is not to be confused with the license that was confusingly called “The Unlicense”.