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ARTICLE · 31 MARCH 2023

Understanding Software Licences (Part 2)

Potter Clarkson LLP
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In the first part of this blog, we explained what a software licence is. In this part we will look at the different types of software licences and share...

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Craig Brownlie
Craig Brownlie
Charlotte Wallace
Charlotte Wallace
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In the first part of this blog, we explained what a software licence is. In this part we will look at the different types of software licences and share some practical tips to help you get started in terms of producing the software licences you need.

Software licences can be broadly categorised into two types:

  1. Open-source licences
  2. Proprietary licences

The key differentiator lies in the Software owner's ability to control onward distribution, amendment or commercial use of the software code.

Whilst open-source licences will typically not generate any revenue and also mandate that the user must be able to freely use the source code of the software for any purpose (including sharing with others), a proprietary licence is often referred to as "closed source".

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