7 Software License Types Explained: Open Source and Closed Source

Software licensing is a crucial component of the software industry, governing the terms and conditions under which software can be used, modified, and distributed. Software licenses can vary widely in terms, restrictions, and permissions. Understanding the different types of software licenses is essential for anyone involved in software development or distribution.

Example license for Jenkins automation server.

In this blog post, we will explore the most common types of software licenses, including open source licenses and closed source licenses, and their implications for your software supply chain and policy management. By the end of this post, you will better understand the different types of software licenses and how they can impact the development and distribution of software.

Open source licenses

While many different open source licenses exist, their requirements fall under two broad categories: “permissive” and “copyleft.”

Permissive

A permissive license allows developers and organizations to use, modify, and distribute software with few restrictions. These licenses are a popular choice among organizations looking to sell software. They enable developers to create and innovate while allowing organizations to keep their software proprietary and monetize it.

However, it’s important to note that although the term ‘permissive’ suggests leniency, failure to comply with the legal obligations of these licenses can still result in serious consequences. These include expensive lawsuits, publication of proprietary software, and loss of business.

Examples of permissive licenses include the Berkeley Software Distribution (BSD) and the Massachusetts Institute of Technology (MIT) license. BSD licenses were originally 4-clause licenses; however, BSD licenses can now have 0–4 clauses. The MIT License was originally developed for X Window System in the 1980s, and is now one of the most popular open source software (OSS) licenses available.

While these licenses more generally address “attribution” or giving the author credit for their work, (Read more...)