What happens if private company ABC Inc. Is using your software, and then they are contracted by the military to perform work
This would likely fall under normal contract negotiation due diligence. You don't accept a contract to use a piece of software that you aren't legally allowed to use on that contract. Violating that would be ABC Inc.'s problem (though it would obviously affect the contractee). Thus, the status of your various software licenses needs to be tracked.
I worked with a vendor that had issues like this. They would need to "firewall off" not only data but also employees who were working on or with data or software that could not legally be used on another contract. This extended to seating assignments in their cubicle farm, where some people could not sit near other people who were working on conflicting contracts. The onus of staying legally compliant was taken very seriously.
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This would likely fall under normal contract negotiation due diligence. You don't accept a contract to use a piece of software that you aren't legally allowed to use on that contract. Violating that would be ABC Inc.'s problem (though it would obviously affect the contractee). Thus, the status of your various software licenses needs to be tracked.
I worked with a vendor that had issues like this. They would need to "firewall off" not only data but also employees who were working on or with data or software that could not legally be used on another contract. This extended to seating assignments in their cubicle farm, where some people could not sit near other people who were working on conflicting contracts. The onus of staying legally compliant was taken very seriously.