This presentation is an introduction to Free and Open Source Software Licensing and Business Models. An open-source license is a type of license for computer software and other products that allows the source code, blueprint or design to be used, modified and/or shared under defined terms and conditions. This allows end users to review and modify the source code, blueprint or design for their own customization, curiosity or troubleshooting needs.

1. Open Source Licenses
Prepared by:
Waruna Kodituwakku
University of Colombo School of Computing
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2. Roadmap
 Software Licenses
 Copyleft Vs. Permissive
 GNU GPL
 GPL Versions
 GNU LGPL
 Ms-PL
 Open Source Business Models
 Comparison of GPL, LGPL & Ms-PL
 Creative Commons License
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3. Open Source Licenses
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4. Software Licenses
What is a Software License?
Simply it is the authorization to use software. This Also can be defined as a
contract whereby the software owner conveys certain intellectual property
rights, assigns certain obligations, assumes certain obligations, and imposes
certain risks on a licensee.
What is an Open-Source License?
An open source license is a copyright license for computer software that
allows the source code to be used, modified and/or shared under defined
terms and conditions. This allows end users to review and modify the source
code for their own customization, curiosity or
troubleshooting needs.
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5. Copyleft Vs. Permissive
Copyleft Licenses
Copyleft is the practice of using copyright law to offer the right to
distribute copies and modified versions of a work and requiring that the
same rights be preserved in modified versions of the work. any works
derived from a work with a copyleft license must themselves be copyleft
when distribute.
E.g.
• GNU General Pulblic Licesnse (GPL)
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6. Copy-Left Vs. Permissive Contd.
Permissive Licenses
A "permissive" license is basically a non-copyleft license. Permissive
licenses typically allow licensees to use, distribute and modify the
licensed material, for almost any purpose, including distributing the
licensed material as part of a FLOSS (Free/Libre/Open-Source Software)
licensed project, or a proprietary-licensed project.
E.g.
• BSD License
• MIT License
• PHP License
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7. GNU General Public License (GPL)
• The GPL was created by Richard Stallman in order to protect GNU software
from being made proprietary. GPL is under the copyright ownership of the
Free Software Foundation (FSF).
• The GPL is a copyleft license, which means that derived works can only be
distributed under the same license terms.
• GPL ensures every user receives the essential freedoms that define "free"
software, which is free of restrictions. Basically, it allows users to legally
copy, distribute and modify software.
• That means with GPL, we can,
• Copy the software.
• Distribute the software however we want.
• Charge a fee to distribute the software.
• Make whatever modifications to the software we want.
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8. GPL Versions
Version 1
• Released on 25 February 1989. Prevented the 2 main ways that software
distributors restricted the freedoms that define free software.
• The first problem - Distributors may publish binary files only executable,
but not readable or modifiable by humans.
• To prevent this, GPLv1 said that any vendor distributing binaries must also
make the human-readable source code available under the same licensing
terms
• The second problem - Distributors might add additional restrictions, either
by adding restrictions to the license, or by combining the software with
other software which had other restrictions on its distribution.
• To prevent this, GPLv1 said that modified versions, as a whole, had to be
distributed under the terms in GPLv1.
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9. GPL Versions Contd.
Version 2
• Released in June 1991.
• Major Change: "Liberty or Death".
• This section says that if somebody has restrictions imposed that
prevent him or her from distributing GPL-covered software in a way
that respects other users' freedom, he or she cannot distribute it at
all.
• E.g. if a legal ruling states that he or she can only distribute the
software in binary form.
• The hope is that this will make it less tempting for companies to use
patent threats to require a fee from the free software developers.
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10. GPL Versions Contd.
Version 3
• Released on June 29, 2007.
• GPLv3 has terms that are similar to GPLv2, but expands the reach of
the GPL even further into such areas as patent and digital rights
management.
• GPLv3 contains provisions that can affect software development in four
key ways,
• Reciprocity
• Digital Rights Management
• Patents
• License compatibility
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11. GNU Lesser General Public License
(LGPL)
• The GNU Lesser General Public License or LGPL is a free software license
published by the Free Software Foundation (FSF).
• The LGPL allows developers and companies to use and integrate LGPL
software into their own (even proprietary) software without being required
(by the terms of a strong copyleft) to release the source code of their own
software-parts.
• The word "Lesser" in the title of the license is used, to show that LGPL cannot
guarantee end-users complete freedom in the use of software, because only
the LGPL-parts (but not any proprietary software-parts) guarantee end-users
the access to source code and therefore the freedom of modification.
• The LGPL is primarily used for software libraries, although it is also used by
some stand-alone applications.
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12. Microsoft Public License (Ms-PL)
• Microsoft has introduced “Shared Source” programs which allow
individuals and organizations to access Microsoft's source code for
reference, for review and auditing from a security perspective, and for
development.
• As part of the this program, Microsoft released 5 licenses for general use.
Two of them, Microsoft Public License and Microsoft Reciprocal License,
have been approved by the Open Source Initiative as open source licenses
and are regarded by the Free Software Foundation as free software
licenses
• Ms-PL is the least restrictive of the Microsoft licenses and allows for
distribution of compiled code for either commercial or non-commercial
purposes under any license that complies with the Ms-PL. Redistribution of
the source code itself is permitted only under the Ms-PL.
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13. Comparison of GPL, LGPL & Ms-PL
GPL LGPL Ms-PL
• Must distribute license with source   
• Cannot use contributors name to endorse 
• There has to be notification for changed files  
• Any change must distributed in source form  
• Lets you explicitly charge for providing warranty or
guarantee or transfer of code
 
• All derivative work must be under the same license  
• Must show license when run from the command line 
• Non derivative works can have different license  
• May include countries where there is a contradiction
with patent in that country
 
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14. Open Source Business Models
We can identify five main Business Models that can be
used with Open Source Software.
Services Model
Dual Licensing
Model
Proprietary Plug-
In/Application
Model
Freemium Model
Software as a
Service (SaaS)
Model
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15. Open Source Business Models
Contd.
• Services Model
In this model, an organization sells maintenance, support, documentation,
and training services, as well as certification of the software version, in
conjunction with the open source software.
(e.g. Redhat)
• Dual Licensing Model
Selling the software under a commercial license and releasing the code under
an open source license simultaneously.
(e.g. MySQL)
• Proprietary Plug-in/Application Model
In this model, an organization sells premium commercial add-ons, modules,
and applications in conjunction with the open source
software and then packages both the underlying code and the
apps together. (e.g. Jaspersoft)
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16. Open Source Business Models Contd.
• Freemium Model
In this model, a corporation releases software under an open source license and
sells premium features on top. Unlike in plug-in/app model, here a company
need not create an entirely separate module or plug-in. The owners of the code
can just chose not to release certain features.
(e.g. VMware Hyperic)
• Software as a Service (SaaS) Model
In this model, the open source project serves as a base for a SaaS offering. In a
SaaS model, customers pay for the hosting, streaming, and delivery of the
software on a managed cloud, regardless of the license of underlying software .
(e.g. Acquia CMS Support)
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17. GNU GPL & Business Models
• GNU General Public License has been used in some business models as
the license. Here are some examples.
• Dual Licensing Model
• MySQL
(http://www.mysql.com/about/legal/licensing/index.html)
• Services Model
• Redhat (http://www.redhat.com/licenses/)
• Software as a Service Model
• Acquia (http://www.acquia.com/about-us/legal/licensing-
and-terms-of-service)
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18. GNU LGPL & Business Models
• GNU Lesser General Public License is used with Dual Licensing
Model in many software such as,
• XMind (http://www.xmind.net/license/)
• BeanShell (http://www.beanshell.org/license.html)
• There are some software directly using LGPL such as,
• FFmpeg (http://www.ffmpeg.org/legal.html)
• Teem (http://teem.sourceforge.net/lgpl.html)
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19. Ms-PL & Business Models
• Dual License Model
Toji is a software project that uses both Apache License 2.0 and Ms-PL in
a Dual License. (https://raw.github.com/idavis/Toji/master/LICENSE.txt)
• There are some software which using Microsoft Public License such as,
• OpenSubdiv
(http://graphics.pixar.com/opensubdiv/license.html)
• Oxite
Open source, web standards compliant, blog engine
(http://oxite.codeplex.com/license)
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20. Comparison of Open Source Licenses
License Release changes under
a different license
Link with code using
a different license
GPL
Compatible
Apache License
2.0
Yes Yes Yes
GNU GPL No No Yes
GNU LGL No Yes Yes
Prior BSD Licenses Yes Yes No
New BSD License Yes Yes Yes
MIT License Yes Yes Yes
Ms-PL No No No
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21. Creative Commons License
• Creative Commons license (CC) is one of several public copyright
licenses that allow the distribution of copyrighted works.
• A Creative Commons license is used when an author wants to give
people the right to share, use, and even build upon a work that they
have created.
• CC provides an author ,
• Flexibility : They might choose to allow only non-commercial
uses of their own work.
• Protection: People who use or redistribute an author's work
don’t have to worry about copyright infringement, as long as
they abide by the conditions the author has specified.
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22. Three Layers of a CC License
.
• Machine readable metadata
A summary of the key freedoms and obligations written into
a format that software systems, search engines, and other
kinds of technology can understand.
• Common Deed (A human readable version)
This shows the familiar Creative Commons icons. The
Commons Deed is a handy reference for licensors and
licensees, summarizing and expressing some of the most
important terms and conditions.
• Legal Code
The type of language that lawyers like to use in contracts
and legal docs. This protects the content owner from others
violating the terms of their Creative Commons license.
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23. Attribution CC BY
This license lets others
distribute, remix, tweak, and
build upon your work, even
commercially, as long as they
credit you for the original
creation. This is the most
accommodating of licenses
offered.
Attribution-ShareAlike
CC BY SA
This license lets others remix,
tweak, and build upon your
work even for commercial
purposes, as long as they
credit you and license their
new creations under the
identical terms.
Attribution-NoDerivs
CC BY-ND
This license allows for
redistribution, commercial and
non-commercial, as long as it is
passed along unchanged and in
whole, with credit to you.
Attribution-NonCommercial
CC BY-NC
This license lets others remix,
tweak, and build upon your
work non-commercially, and
although their new works must
also acknowledge you and be
non-commercial,
Attribution-NonCommercial-
ShareAlike CC BY-NC-SA
This license lets others remix,
tweak, and build upon your
work non-commercially, as
long as they credit you and
license their new creations
under the identical terms.
Attribution-NonCommercial
NoDerivs CC BY-NC-ND
This license is the most restrictive
license, only allowing others to
download your works and share
them with others as long as they
credit you, but they can’t change
or use them commercially.
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24. References
1. Open Source Initiative. 2013. Open Source Licenses by Category. [ONLINE] Available at:
http://opensource.org/licenses/category. [Accessed 08 March 2013].
2. Wikipedia, the free encyclopedia. 2013. Comparison of free and open-source software licenses.
[ONLINE] Available at: http://en.wikipedia.org/wiki/Comparison_of_free_software_licenses.
[Accessed 09 March 2013].
3. Lizenz Center, license list. 2013. Lizenz Center, license list. [ONLINE] Available at:
http://www.ifross.org/ifross_html/lizenzcenter-en.html. [Accessed 09 March 2013].
4. Open Technology. 2013. Open Source Business Models | Open Technology. [ONLINE] Available
at: http://opentec.org/open-source-business-models/. [Accessed 10 March 2013].
5. Open Source Insider. 2013. How to create a successful open source business model - Open
Source Insider. [ONLINE] Available at: http://www.computerweekly.com/blogs/open-source-
insider/2013/01/how-to-create-a-successful-open-source-business-model.html. [Accessed 10
March 2013].
6. Wikipedia, the free encyclopedia. 2013. Apache - Wikipedia, the free encyclopedia. [ONLINE]
Available at: http://en.wikipedia.org/wiki/Apache. [Accessed 12 March 2013].
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25. References Contd.
7. Open Source Initiative. 2013. The BSD 3-Clause License | Open Source Initiative. [ONLINE]
Available at: http://opensource.org/licenses/BSD-3-Clause. [Accessed 15 March 2013].
8. Wikipedia, the free encyclopedia. 2013. GNU General Public License - Wikipedia, the free
encyclopedia. [ONLINE] Available at: http://en.wikipedia.org/wiki/GNU_General_Public_License.
[Accessed 15 March 2013].
9. Open Source Initiative. 2013. The MIT License (MIT) | Open Source Initiative. [ONLINE] Available
at: http://opensource.org/licenses/MIT. [Accessed 14 March 2013].
10. Microsoft Public License (MS-PL) | Open Source Initiative. 2013. Microsoft Public License (MS-PL)
| Open Source Initiative. [ONLINE] Available at: http://opensource.org/licenses/MS-PL. [Accessed
16 March 2013].
11. Creative Commons. 2013. About The Licenses - Creative Commons. [ONLINE] Available at:
http://creativecommons.org/licenses/. [Accessed 14 March 2013].
12. Creative Commons. 2013. Choose a License. [ONLINE] Available at:
http://creativecommons.org/choose/. [Accessed 14 March 2013]
13. GNU Lesser General Public License - Wikipedia, the free encyclopedia. [ONLINE] Available at:
http://en.wikipedia.org/wiki/GNU_Lesser_General_Public_License. [Accessed 15 March 2013].25

26. References Contd.
14. Free Software Foundation. 2013. FSF Licensing & Compliance Team — Free Software
Foundation — working together for free software. [ONLINE] Available at:
http://www.fsf.org/licensing/. [Accessed 12 March 2013].
15. Wikipedia, the free encyclopedia. 2013. Software license - Wikipedia, the free encyclopedia.
[ONLINE] Available at: http://en.wikipedia.org/wiki/Software_license. [Accessed 15 March
2013].
16. Wikipedia, the free encyclopedia. 2013. Copyleft - Wikipedia, the free encyclopedia. [ONLINE]
Available at: http://en.wikipedia.org/wiki/Copyleft. [Accessed 15 March 2013].
17. Wikipedia, the free encyclopedia. 2013. Permissive free software licence - Wikipedia, the free
encyclopedia. [ONLINE] Available at:
http://en.wikipedia.org/wiki/Permissive_free_software_licence. [Accessed 16 March 2013].
18. Software Licenses. 2013. Compatible Licenses. [ONLINE] Available at:
http://www.softwarelicenses.org/p1_open_source_glossary_compatible_licenses.php.
[Accessed 15 March 2013].
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