Open Sources 2.0

Chapter 5. Dual Licensing

Michael Olson

Over the past decade, there have been many attempts to commercialize open source software. One common strategy has been to create services businesses, which offer consulting and support to users of open source. Another strategy has been to build hybrid businesses, which distribute open source platforms with proprietary add-ons, and which make money by licensing the add-ons.

A third strategy, and the focus of this chapter, is called dual licensing. Companies that use dual licensing provide a single software product under two different licenses. One license, which imposes open source terms, is available to a certain class of users. A second license, with proprietary terms, is available to others.

Business and Politics

This chapter is about business. Software is deep in the modern economy: it provides the mechanism for the flow of capital around the world, and it is itself a good that can be produced, bought, and sold. Whenever something interesting happens in the world of software, business leaders pay attention.

Open source is interesting. It enforces new rules for use and distribution of software products. It changes the economics of software production. It impacts the way that companies can capitalize on the software they control.

At the same time, though, open source has no business agenda. Open source is about freedom in the political sense. It is about peer review and scientific collaboration. Open source licenses take no position whatsoever ...