diff --git a/TODO_TESTS.md b/TODO_TESTS.md
index 0bca0f7c..3ad1a973 100644
--- a/TODO_TESTS.md
+++ b/TODO_TESTS.md
@@ -30,8 +30,9 @@ This document tracks test coverage improvements for DocuElevate. The goal is to
   - Test skipping when URL not configured
   - Test error handling for failed requests
   
-- [x] `app/utils.py` (0% → Still 0%) ⚠️
-  - Simple re-export module, coverage is from actual usage
+- [x] `app/utils/` package (exports via __init__.py) ✅
+  - Package exports tested in test_reexports.py
+  - Individual module coverage from actual usage
   
 - [x] `app/frontend.py` (0% → 100%) ✅
   - Simple re-export module, test imports work
diff --git a/app/routes/license_routes.py b/app/routes/license_routes.py
deleted file mode 100644
index a4d3f84e..00000000
--- a/app/routes/license_routes.py
+++ /dev/null
@@ -1,19 +0,0 @@
-from pathlib import Path
-
-from fastapi import APIRouter, HTTPException
-from fastapi.responses import PlainTextResponse
-
-router = APIRouter()
-
-
-@router.get("/licenses/lgpl.txt", response_class=PlainTextResponse)
-async def get_lgpl_license():
-    """
-    Serve the LGPL license text file
-    """
-    license_path = Path("frontend/static/licenses/lgpl.txt")
-    if not license_path.exists():
-        raise HTTPException(status_code=404, detail="License file not found")
-
-    with open(license_path, "r") as f:
-        return f.read()
diff --git a/app/utils.py b/app/utils.py
deleted file mode 100644
index 08742772..00000000
--- a/app/utils.py
+++ /dev/null
@@ -1,7 +0,0 @@
-# app/utils.py
-# This file is deprecated. Functions have been moved to the utils package.
-# To avoid breaking existing imports, we'll import and re-export the functions
-from app.utils.file_operations import hash_file  # noqa: F401
-from app.utils.logging import log_task_progress  # noqa: F401
-
-# These functions are now available directly from the app.utils package
diff --git a/pytest.ini b/pytest.ini
deleted file mode 100644
index d84bb550..00000000
--- a/pytest.ini
+++ /dev/null
@@ -1,64 +0,0 @@
-[tool:pytest]
-# Pytest configuration
-testpaths = tests
-python_files = test_*.py
-python_classes = Test*
-python_functions = test_*
-
-# Output options
-addopts = 
-    --verbose
-    --strict-markers
-    --strict-config
-    --cov=app
-    --cov-report=term-missing
-    --cov-report=html
-    --cov-report=xml
-    --cov-branch
-    --cov-fail-under=0
-    # Note: Coverage threshold set to 0 initially, should be increased gradually
-    # Target: 80% coverage for production code
-
-# Markers for organizing tests
-markers =
-    unit: Unit tests for individual functions/methods
-    integration: Integration tests for API endpoints and workflows
-    slow: Tests that take significant time to run
-    security: Security-related tests
-    requires_external: Tests requiring external services (OpenAI, Azure, etc.)
-    requires_db: Tests requiring database
-    requires_redis: Tests requiring Redis
-
-# Ignore patterns
-norecursedirs = 
-    .git
-    .tox
-    dist
-    build
-    *.egg
-    __pycache__
-    .venv
-    venv
-    env
-
-# Coverage options
-[coverage:run]
-source = app
-omit = 
-    */tests/*
-    */test_*.py
-    */__pycache__/*
-    */venv/*
-    */env/*
-    */.venv/*
-
-[coverage:report]
-exclude_lines =
-    pragma: no cover
-    def __repr__
-    raise AssertionError
-    raise NotImplementedError
-    if __name__ == .__main__.:
-    if TYPE_CHECKING:
-    @abstractmethod
-    @abc.abstractmethod
diff --git a/tests/test_coverage_boost.py b/tests/test_coverage_boost.py
index f2b27073..d49dc1c8 100644
--- a/tests/test_coverage_boost.py
+++ b/tests/test_coverage_boost.py
@@ -5,7 +5,7 @@ from unittest.mock import patch, MagicMock
 
 @pytest.mark.unit
 class TestUtilsCompat:
-    """Tests for app/utils.py backward compatibility module."""
+    """Tests for app.utils package exports."""
 
     def test_imports_hash_file(self):
         """Test that hash_file can be imported from utils."""
diff --git a/tests/test_reexports.py b/tests/test_reexports.py
index cd118b12..dd42fbcc 100644
--- a/tests/test_reexports.py
+++ b/tests/test_reexports.py
@@ -1,8 +1,8 @@
 """
-Tests for simple re-export modules (app/utils.py, app/frontend.py, app/utils/config_validator.py)
+Tests for simple re-export modules (app/frontend.py, app/utils/config_validator.py)
 
 These modules are simple re-exports of functions from other modules.
-We test that imports work correctly.
+We test that imports work correctly, including the app.utils package.
 """
 
 import pytest
@@ -10,7 +10,7 @@ import pytest
 
 @pytest.mark.unit
 class TestUtilsReexports:
-    """Test that app/utils.py re-exports work correctly"""
+    """Test that app.utils package exports work correctly"""
 
     def test_hash_file_import(self):
         """Test that hash_file can be imported from app.utils"""
@@ -26,12 +26,12 @@ class TestUtilsReexports:
         # Function should exist and be callable
         assert callable(log_task_progress)
 
-    def test_utils_module_is_backward_compatible(self):
-        """Test that utils module maintains backward compatibility"""
-        # The module comment says it's deprecated but maintains compatibility
+    def test_utils_package_exports(self):
+        """Test that utils package exports expected functions"""
+        # The utils package should export functions via __init__.py
         import app.utils
 
-        # Module should exist and have expected attributes
+        # Package should exist and have expected attributes
         assert hasattr(app.utils, "hash_file")
         assert hasattr(app.utils, "log_task_progress")