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.