Companies creating products that exploit the LZW compression algorithm must get a licence agreement with Unisys in order to use it lawfully, including its use in the GIF format. This criterion emphasizes the exclusive nature of the compression method and stresses how crucial it is to respect intellectual property rights and licensing agreements when adding GIF support into other software programs or online distribution channels.

Due to their support for animations, transparency, and broad compatibility with web browsers, GIF files have maintained their appeal in spite of the license need.