What Are the Most Common Open Source Licenses for Startups?

There are thousands of open source licenses. But according to the 2023 Open Source Security and Risk Analysis report, the top 20 most used open source licenses cover 98% of all open source code in use.

This article provides an overview of these 20, as well as factors to consider when choosing the right license for your startup, such as business goals, collaboration versus control, compatibility and legal advice.

When choosing or reviewing open source licenses, it’s best to work with legal counsel. If you’re looking for legal counsel, feel free to reach out to us here.

Top 20 Open Source License Ranking

1. MIT License: Allows users to use, modify and distribute software, including for commercial purposes, while providing limited liability and warranty.
2. Apache License 2.0: Grants users the freedom to use, modify and distribute software, including for commercial purposes, with certain conditions and patent protection.
3. ISC License: Allows users to use, modify and distribute software with minimal restrictions, providing simplicity and clarity.
4. BSD 3-Clause “New” or “Revised” License: Permits users to use, modify and distribute software, including for commercial purposes, while requiring attribution and preserving the original copyright notice.
5. BSD 2-Clause “Simplified” License: Allows users to use, modify and distribute software, including for commercial purposes, while requiring attribution and preserving the original copyright notice.
6. Creative Commons Zero v1.0 Universal: Allows users to waive their copyright and related rights, dedicating their work to the public domain, thus providing maximum flexibility for reuse and modification.
7. Generic Public Domain: Refers to works that are not subject to copyright restrictions, allowing for unrestricted use, modification and distribution.
8. Common Development and Distribution License (CDDL) 1.1: Used primarily for software related to the Java programming language, allowing users to modify and distribute software under specific terms.
9. GNU Lesser General Public License (LGBL) v2.1 or later: Similar to the GPL but with more permissive terms for linking and use in proprietary software.
10. Eclipse Public License (EPL) 1.0: Commonly used for software development tools and platforms, allowing users to modify and distribute software under certain conditions.
11. The Unlicense: Public domain dedication that allows users to waive their copyright and related rights, providing maximum freedom for using, modifying and distributing software.
12. GNU General Public License (GPL) v2.0 or later: Copyleft license that ensures the freedom to use, modify and distribute software, while also requiring derived works to be licensed under the GPL.
13. Mozilla Public License (MPL) 2.0: Copyleft license that allows the use, modification and distribution of software, with certain conditions, including the requirement to distribute modifications under the MPL.
14. Eclipse Public License (EPL) 2.0: Commonly used for software development tools and platforms, allowing users to modify and distribute software under certain conditions.
15. Zlib/libpng License: Allows users to use, modify and distribute software, including for commercial purposes, while providing simplicity and compatibility.
16. Do What The F*ck You Want To Public License (WTFPL): Provides users with maximum freedom to use, modify and distribute software with very minimal restrictions.
17. SIL Open Font License 1.1: Specifically designed for fonts, allowing users to use, modify and distribute fonts under certain conditions.
18. Eclipse Distribution License – v 1.0: Specifically designed for distributing the Eclipse software. It allows users to use, modify and distribute the software under certain conditions.
19. Creative Commons Attribution 4.0: Used for creative works such as texts, images and other media. It allows users to use, modify and distribute the work, including for commercial purposes, as long as proper attribution is given to the original creator.
20. BSD Zero Clause License: Derived from the BSD 2-Clause License, it effectively places the software in the public domain by waiving all copyright and related rights, and allowing users to use, modify and distribute the software without any restrictions.

How to Choose the Right Open Source License for Your Startup

Choosing the right open source license can be daunting, but it is crucial for startups to make an informed decision based on their business needs. Here are some factors to consider:

• Business Goals. Startups should choose an open source license that aligns with their business goals. For example, if a startup wants to keep its code proprietary and use it as a competitive advantage, it may want to consider using a restrictive license like the GPL. On the other hand, if a startup wants to encourage collaboration and build a community around their product, it may want to choose a permissive license like MIT.
• Collaboration vs Control. Startups need to decide how much control they want over their codebase. Permissive licenses allow others to use and modify the code without any restrictions, while restrictive licenses require any modifications or derivative works to be released under the same license. Startups should weigh the benefits of collaboration against the need for control when selecting a license.
• Startups should also consider compatibility with other software projects when choosing an open source license. Some licenses are not compatible with each other, which can limit opportunities for collaboration or integration with other projects.
• Legal Advice. Finally, startups should seek legal advice before choosing an open source license. While many licenses are well-established and widely used in the industry, there may be specific legal implications or risks associated with certain licenses that need to be considered before making a decision. If you’re looking for legal counsel, feel free to reach out to us here.

In conclusion, startups have a wide range of open source licenses to choose from, each with their own advantages and disadvantages. When selecting a license, startups should consider their business goals, level of control they want over their codebase, compatibility with other software projects and seek legal advice if necessary. By making an informed decision, startups can leverage the benefits of open source software while protecting their proprietary IP.