Today, Free and open source software (FOSS) is widely used by organizations and individuals and viewed as a new approach to developing software. New software can be developed by integrating FOSS components or incorporating source code fragments, thus adding value in terms of functionality and quality. The use of FOSS components in developing new software requires developers to comply with the terms of the licenses associated with those components. The issues related to this compliance scenario are of paramount importance, because the license of a FOSS component can impact the whole Information System or computer application being developed. License compliance in FOSS is a significant issue today and organizations using FOSS are predominately focusing on this issue. The non-compliance to licenses in FOSS systems leads to the loss of reputation and the high costs of litigation for organizations. An automated approach is preferred to verifying license compliance of an FOSS being developed. Towards an automated approach, in this paper, we will argue for FOSS licenses in a machine interpretable form and for managing license compliance in a FOSS development process.