Software Licences

Balancing developer profit against community freedom.

Examiner's Eye - Avoid the Trap!

Open Source Software

Software where the original, human-readable source code is distributed directly alongside the program, totally free of charge.

  • Benefit: The global developer community can quickly fix bugs, push security patches, and adapt the software to their own specific needs.
  • Drawback: The original creator cannot charge a flat fee for the executable, and they immediately lose strict control over their intellectual property as anyone can fork their code.

Proprietary Software

Strictly legally restricted (closed source) software. Users only ever receive the final, compiled "executable" file. The code is totally hidden.

  • Benefit: The company retains 100% control over the IP. Rivals cannot steal the highly expensive code, and the company can charge massive licensing fees for massive profit.
  • Drawback: Users are helplessly reliant on the company. They cannot fix bugs themselves, and must wait for official corporate updates to be pushed.

Interactive Lab: The Developer's Dilemma

You have spent 3 years programming a revolutionary new piece of Graphic Design software. Select ALL the absolute requirements you want for your business model below. The SysAdmin algorithm will calculate the exact licence model you legally require.

Business Requirements

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Select checkboxes on the left to determine your legal framework.

Check Your Understanding

1. Why does Proprietary software mathematically guarantee that rival companies cannot steal the core algorithms?

2. An indie game developer releases their game as Open Source. What is the primary community benefit of this decision?

Written Exam Scenario (AO2/AO3)

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"A massive corporate hospital needs to deploy a brand new database system to securely handle millions of highly sensitive patient medical records. Discuss whether the hospital should adopt an Open Source or a Proprietary software licence for this system." (4 marks)

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