Software Licences Explained

Your friend has Microsoft Word on their laptop. Can you copy it onto yours for free? What about LibreOffice, or Scratch? The answers are different, and the reason is the software’s licence.

In this post:

  • What a software licence is
  • Seven kinds of licence, with real examples
  • Common mix-ups (even some notes get these wrong!)
  • Legal and ethical issues when using software
  • Two activities and a quiz

What is a software licence?

When you install a program, you usually click “I agree”. You are agreeing to its licence: the rules that say what you may and may not do with it. For bought software this is often called an EULA (End User Licence Agreement). When you pay for software, you are usually buying the right to use it, not the program itself.

Seven kinds of licence

Licence typeWhat it meansCan you share copies?Examples
Proprietary (closed source)Owned by a company. You usually pay, you cannot see or change the code, and the licence limits how many computers you may install it on.NoMicrosoft Office, Windows, Adobe Photoshop
Freeware (“free” software)Free of charge, but the code is still closed and the owner keeps control.Only if the licence allows itGoogle Chrome, Adobe Acrobat Reader
Open sourceThe source code is published. Anyone may use, study, change and share it, following the licence (for example GPL or MIT).YesLinux, LibreOffice, GIMP, Firefox, Scratch
Freely redistributableYou may give copies to other people, usually free of charge, as long as you follow the licence’s conditions.YesMost open-source programs, such as VLC media player; some freeware
BeerwareA joke licence: do what you like with the code, as long as you keep the author’s notice. If you ever meet the author and think it was worth it, you can buy them a drink.YesSome code by Poul-Henning Kamp, used in FreeBSD
Floating licenceAn organisation buys a set number of licences that are shared on a network. A licence server lets only that many people use the program at the same time.Only within the organisationA school buys 25 floating licences: the 26th student must wait until someone closes the program
Public domainNo copyright at all. Anyone may use, change, copy or sell it for any purpose.YesSQLite (a database used in phones and browsers)
A cartoon penguin, black and white with a yellow beak and feet, sitting down.
Tux the penguin, the mascot of Linux, one of the best-known open-source projects. Anyone may download Linux, study its code, change it and share it.

Image source: File:Tux.svg (Wikimedia Commons)

Watch out for these mix-ups

  • “Free” has two meanings. Freeware is free of charge but closed. Open-source (sometimes called “free software”) is about freedom to see, change and share the code. Many open-source programs are also free of charge, but some freeware is not open source.
  • Open source is not the same as public domain. GCC and Emacs, for example, are open source under the GPL licence: they still have copyright, and the GPL’s rules must be followed. Public-domain software has no copyright at all.
  • A floating licence does limit users. It limits how many people use the program at the same time, not which computers it is installed on.

Open source: good points and drawbacks

Good pointsDrawbacks
Usually free of chargeHelp may come from online communities rather than a company helpline
Anyone can check the code for problems, and improve itSome programs look or work differently from the ones people are used to
You can share it legally with classmatesFiles may not always open perfectly in other programs

Legal and ethical issues

Using software the right way is both legal (following the law) and ethical (doing what is fair and honest). It is wrong to:

  • Install paid software on more computers than the licence allows
  • Share or post licence keys or product codes
  • Download “cracked” versions of paid programs or games
  • Use proprietary software at home that your school licensed only for school use

Breaking a licence can lead to fines or court action, and it takes money from the people who made the program. Cracked software also often hides viruses and other malware. If money is a problem, look for a free, legal alternative: LibreOffice instead of Microsoft Office, GIMP or Paint instead of Photoshop.

Watch: open source vs closed source

This short video compares open-source and closed-source (proprietary) software. Note one advantage of each.

Video: Open Source vs. Closed Source Software – LearnFree – https://www.youtube.com/watch?v=2q91vTvc7YE

Activity: name the licence

Try it: which kind of licence?

Choose the licence type that best fits each description.

Microsoft Office, which you pay for and may install only on a set number of devices
A free web browser whose code you cannot see
LibreOffice, whose code anyone can study, change and share
Code you may use freely as long as you keep a note offering the author a drink
A school’s design program that only 25 students can use at the same time
SQLite, which has no copyright at all
A program whose licence says you may give copies to anyone

Activity: allowed or not?

Try it: is it allowed?

Drag each action into the right box (or tap the card, then tap the box).

Giving a classmate a copy of LibreOffice
Posting a game’s product key online
Downloading a “cracked” copy of Photoshop
Downloading GIMP free from its official website
Copying your parent’s Microsoft Office installer for a friend
Changing the code of an open-source program and sharing your version under the same licence
Removing the author’s notice from beerware code
Using Scratch at home and at school

Allowed ✔

Not allowed ✘

Self-check quiz

Click the best answer. You get feedback straight away; only your first click counts towards your score.

1. What is a software licence?

2. Which kind of software lets anyone see and change its code?

3. Freeware is…

4. A floating licence…

5. GCC and Emacs are licensed under the GPL. That means they are…

6. Why is using cracked software a bad idea?

Related posts on islandclass.org

There is no older Form 1 post on this topic yet, so this is the main lesson.

Next: Copyright, Plagiarism, Piracy and Hacking

Syllabus link: Forms 1–3 ICT curriculum, Module 6, Objective 6.4 – describe legal and ethical issues in relation to usage of software.

Attributions to media used in this post:

  • Tux.svg – Larry Ewing (lewing@isc.tamu.edu), Simon Budig and Garrett LeSage, created with The GIMP – Attribution (free to use if the creators are acknowledged) (via Wikimedia Commons)
  • Video: Open Source vs. Closed Source Software – LearnFree (YouTube)

Updates

2026/10/21

– Fixed the activity code so its buttons keep working.

© 2026 Vedesh Kungebeharry. All rights reserved.

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