Editing Free software (section)

== Business model ==

{{See also|Business models for open-source software}}

[[Commercial software|Selling software]] under any free-software licence is permissible, as is commercial use. This is true for licenses with or without [[copyleft]].<ref name="Popp2" /><ref name="linfo" /><ref name="bsdl-gpl" />

Since free software may be freely redistributed, it is generally available at little or no fee. Free software business models are usually based on adding value such as customization, accompanying hardware, support, training, integration, or certification.<ref name="Popp2" /> Exceptions exist however, where the user is charged to obtain a copy of the free application itself.<ref>{{Cite web|url=https://lists.gnu.org/archive/html/libreplanet-discuss/2016-02/msg00227.html|title=[libreplanet-discuss] Is there any software that is libre but not gratis|website=lists.gnu.org}}</ref>

Fees are usually charged for distribution on compact discs and bootable USB drives, or for services of installing or maintaining the operation of free software. Development of large, commercially used free software is often funded by a combination of user donations, [[crowdfunding]], corporate contributions, and tax money. The [[SELinux]] project at the United States [[National Security Agency]] is an example of a federally funded free-software project.

Proprietary software, on the other hand, tends to use a different business model, where a customer of the proprietary application pays a fee for a license to legally access and use it. This license may grant the customer the ability to configure some or no parts of the software themselves. Often some level of support is included in the purchase of proprietary software, but additional support services (especially for enterprise applications) are usually available for an additional fee. Some proprietary software vendors will also customize software for a fee.<ref name="Dornan" />

The Free Software Foundation encourages selling free software. As the Foundation has written, "distributing free software is an opportunity to raise funds for development. Don't waste it!".<ref name=":1" /> For example, the FSF's own recommended license (the [[GNU General Public License|GNU GPL]]) states that "[you] may charge any price or no price for each copy that you convey, and you may offer support or warranty protection for a fee."<ref name="GPLsection4" />

Microsoft CEO [[Steve Ballmer]] stated in 2001 that "open source is not available to commercial companies. The way the license is written, if you use any open-source software, you have to make the rest of your software open source."<ref name="suntimes" /> This misunderstanding is based on a requirement of [[copyleft]] licenses (like the GPL) that if one distributes modified versions of software, they must release the source and use the same license. This requirement does not extend to other software from the same developer.<ref>{{Cite web |title=Licenses |url=https://choosealicense.com/licenses/ |access-date=2022-10-19 |website=Choose a License |language=en}}</ref> The claim of incompatibility between commercial companies and free software is also a misunderstanding. There are several large companies, e.g. [[Red Hat]] and [[IBM]] (IBM acquired RedHat in 2019),<ref>{{Cite web |title=IBM Closes Landmark Acquisition of Red Hat for $34 Billion; Defines Open, Hybrid Cloud Future |url=https://newsroom.ibm.com/2019-07-09-IBM-Closes-Landmark-Acquisition-of-Red-Hat-for-34-Billion-Defines-Open-Hybrid-Cloud-Future |access-date=2022-10-19 |website=IBM Newsroom |language=en-us}}</ref> which do substantial commercial business in the development of free software.{{citation needed|date=April 2019}}