How does Open Source Software Differ from Proprietary Software?

Software that is proprietary is usually licensed to users on a non-exclusive basis, usually for a fee, and the ownership of the source code for the software, along with any modifications to this code (usually classified as derivative works) is reserved to the organi ation that owns and is licensing the code! "his is also sometimes referred to as a closed system since there is a limited license to use the software without modification to the source code and thus access to the source code is closed rather than open! "his type of software is also sometimes referred to as commercial software, although this may be confusing since some open source#freeware software may be licensed for a fee and some proprietary software may be licensed for use without charge! "hus, we have used a generic classification of proprietary to distinguish software ownership that is not open or free as described below! Some software may be developed internally and never distributed! $n most situations, this type of software would be considered proprietary since there are no other users outside of the originating environment! %s an illustration of this type of license, when an individual or organi ation purchases (i!e!, licenses) software, the user ac&uires, along with the physical copy of the software and the manual (if there are such physical copies), the right to use the software for its intended purpose! 'y opening the plastic wrap on the box, the user becomes bound by the so-called shrinkwrap license and, under the terms of most proprietary licenses, the user is bound not to copy the work (beyond the single copy made for the user(s own use), not to make derivative works based on the work, and not to authori e anyone else to do either of these two things! "he elimination of these three restrictions is the foundation of open source licensing! )ithin this proprietary#closed realm, there is a classification known as shareware! "he distinction for this classification is, for most proprietary software, you have to pay for the product before you use it! )ith shareware, the user is given a free trial period to use the product! )hen the free trial period ends, the user must pay the license fee in order to continue using the product! Shareware is generally copyrighted, but the initial users may be granted a right to further distribute the shareware, with the expectation that each user that continues to use the shareware after the designated trial period would be obligated to pay the license fee! $t is important to note that both open source and proprietary software have certain aspects in common* both are governed by licenses, using software so classified has legal considerations and both types of software are regulated by legally defined intellectual property rights! +ost of the distinctions have to do with ownership of code and rights to modify and distribute the code! "he distinctions do not have to do with cost! )hile for the use of most proprietary software there is a fee attached, some proprietary software may be made available for use at no cost! ,onversely, some open source software or freeware may be licensed for a fee!