Some open source licenses meet the requirements of the Open Source Definition. Some open source software is available within the public domain.
Open source software is very often developed in a public, collaborative manner. Open-source software is the most prominent example of open-source development and often compared to (technically defined) user-generated content or (legally defined) open content movements.
A report by Standish Group states that adoption of open-source software models has resulted in savings of about $60 billion per year to consumers.
Authors initially derive a right to grant a license to their work based on the legal theory that upon creation of a work the author owns the copyright in that work. What the author/licensor is granting when they grant a license to copy, modify and redistribute their work is the right to use the author’s copyrights. The author still retains ownership of those copyrights, the licensee simply is allowed to use those rights, as granted in the license, so long as they maintain the obligations of the license. The author does have the option to sell/assign, versus license, their exclusive right to the copyrights to their work; whereupon the new owner/assignee controls the copyrights. The ownership of the copyright (the “rights”) is separate and distinct from the ownership of the work (the “thing”) - a person can own a copy of a piece of code (or a copy of a book) without the rights to copy, modify or redistribute copies of it.
When an author contributes code to an Open Source project (e.g., Apache.org) they do so under an explicit license (e.g., the Apache Contributor License Agreement) or an implicit license (e.g., the Open Source license under which the project is already licensing code). Some Open Source projects do not take contributed code under a license, but actually require (joint) assignment of the author’s copyright in order to accept code contributions into the project (e.g., OpenOffice.org and its Joint Copyright Assignment agreement).
Placing code (or content) in the public domain is a way of waiving an author’s (or owner’s) copyrights in that work. No license is granted, and none is needed, to copy, modify or redistribute a work in the public domain.
Examples of free software license / open source licenses include Apache License, BSD license, GNU General Public License, GNU Lesser General Public License, MIT License, Eclipse Public License and Mozilla Public License.
The proliferation of open source licenses is one of the few negative aspects of the open source movement because it is often difficult to understand the legal implications of the differences between licenses.With more than 180,000 open source projects available and its more than 1400 unique licenses, the complexity of deciding how to manage open source usage within “closed-source” commercial enterprises have dramatically increased. Some are home-grown while others are modeled after mainstream FOSS licenses such as Berkeley Software Distribution (“BSD”), Apache, MIT-style (Massachusetts Institute of Technology), or GNU General Public License (“GPL”). In view of this, open source practitioners are starting to use classification schemes in which FOSS licenses are grouped (typically based on the existence and obligations imposed by the copyleft provision; the strength of the copyleft provision).
An important legal milestone for the open source / free software movement was passed in 2008, when the US federal appeals court ruled that free software licences definitely do set legally binding conditions on the use of copyrighted work, and they are therefore enforceable under existing copyright law. As a result, if end-users do violate the licensing conditions, their license disappears, meaning they are infringing copyright.
Software can be developed as a consulting project for one or more customers. The customers pay to direct the developers' efforts: to have bugs prioritized and fixed or features added. Companies or independent consultants can also charge for training, installation, technical support, or customization of the software.
Another approach to funding is to provide the software freely, but sell licenses to proprietary add-ons such as data libraries. For instance, an open-source CAD program may require parts libraries which are sold on a subscription or flat-fee basis. Open-source software can also promote the sale of specialized hardware that it interoperates with, as in the case of the Asterisk telephony software, developed by a manufacturer of PC telephony hardware.
Many open-source software projects have begun as research projects within universities, as personal projects of students or professors, or as tools to aid scientific research. The influence of universities and research institutions on open source shows in the number of projects named after their host institutions, such as BSD Unix, CMU Common Lisp, or the NCSA HTTPd which evolved into Apache.
Companies may employ developers to work on open-source projects that are useful to the company's infrastructure: in this case, it is developed not as a product to be sold but as a sort of shared public utility. A local bug-fix or solution to a software problem, written by a developer either at a company’s request or to make his/her own job easier, can be released as an open source contribution without costing the company anything.[24] A larger project such as the Linux kernel may have contributors from dozens of companies which use and depend upon it, as well as hobbyist and research developers.
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