Open Source Software Licenses Impact on Businesses

Abstract: Open source licensing has a significant impact on the choice of business model for companies in the software industry. Permissive open source licenses provide greater flexibility in commercial use and distribution, while restrictive licenses limit revenue generation potential. Understanding the nuances of different open source licenses and complying with licensing requirements is crucial for companies seeking to navigate the complex world of open source licensing and maximize the benefits of open source software.Companies that can successfully navigate the complex world of open source licensing and business model choice can achieve competitive advantage and long-term success in the software industry.  The objective of this thesis is to examine the impact of open source licenses on businesses and delve into how they can shape the choice of utilizing open source software, as well as their implications for business operations. We conduct a literature study and complement it with an empirical study to provide a more complete understanding of the subject. The empirical study enables us to fill in the gaps in our research and compare and validate our findings. Our findings demonstrates the significant impact that licenses can have on a business, highlighting the importance of understanding them for those utilizing open source software. While our results show that the use of open source software does not necessarily limit monetization, there can be restrictions on how products can be monetized. We discovered that the multi-licensing model, which combines an open source license with a proprietary license, can be a viable option for navigating these restrictions.