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Consider this scenario: I have a website that applies special effects for images submitted by the users. The special effects part of my code is coming from GPL code. But in my website, I'm only offering service to the users and not distributing software. I need to keep the rest of the code as proprietary. Will this be a violation of GPL ? Specifically looking for GPL v2.

If it is, can I wrap the GPL code in a webservice , host it internally and call from my proprietary code ?

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If you're not distributing software in any way, you're fine. The Affero GPL family would prevent you from doing what you're doing.

Technically, by linking GPLed code to your own, your own should be under the GPL (not that anybody's going to care). However, you don't have to release anything under the GPL (there are conditions if you distribute, but nothing forces you to distribute the code in the first place). If you're the only one using the code, the license hardly matters.

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