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What Fair Source Software Means—and Why Source Code Alone Isn’t Open Source

Fair Source Software makes source code publicly available while allowing some business-protective license restrictions. The license determines what you can do—not simply whether you can view the code.

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Fair Source Software is a way to make source code publicly available while keeping some license restrictions intended to protect the producer’s business model. That makes it different from both conventional open source and closed source: seeing code is not the same as having unrestricted permission to use it. The license—not the fact that code appears on GitHub—sets those permissions.

What is Fair Source Software?

Bytes described Fair Source as a category for software whose source is public, whose license protects the producer’s business model, and whose license is intended to transition to an open-source license after a period of time. Those are the criteria in the newsletter’s summary of the official Fair Source guidelines; they are not a substitute for reading a project’s actual license. Bytes #314, published August 15, 2024

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The idea is to share code and potentially invite community contributions while retaining restrictions that a business believes it needs. Depending on the license, those limits may affect commercial use or competition. A delayed transition can change the terms later, but the timing and conditions must be established from the specific license.

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Does publishing source code make software open source?

No. Public access lets people inspect the code, but open-source status depends on the rights granted by the license. A project can be easy to view and still restrict particular uses or users. In particular, a restriction against competing with the producer is not equivalent to the broad use permissions associated with conventional open source.

When evaluating a project, distinguish what you can see from what you are permitted to do. Check whether the license allows your intended use, whether it imposes conditions on commercial activity or competition, and whether it says the terms will change in the future.

How Fair Source compares with open and closed source

Question Fair Source, as summarized by Bytes Open source Closed source
Is source code available? Yes, publicly available. Typically available under an open-source license. Generally not publicly available.
What uses are permitted? The license may retain restrictions intended to protect the producer’s business model; inspect its text. Rights and conditions are set by the applicable open-source license. Rights are limited by the applicable proprietary terms.
Can commercial competition be restricted? Potentially; the newsletter cites non-compete restrictions as an example. A restriction specifically barring competition is generally inconsistent with the open-source definition. Commercial use is governed by the proprietary license and may be restricted.
Are contributions invited? May be; public availability can support community contributions, but the project’s terms and practices determine this. Often, subject to the project’s contribution process and license. Usually not through public community contribution, though arrangements vary.
Does the license change later? Bytes’ summary says it transitions to an open-source license after a period; check the project’s stated timing and conditions. Already governed by an open-source license, subject to its terms. No transition is implied; check the project’s terms.

This table describes broad distinctions, not a legal classification of any specific project. Exact rights depend on the license and, where relevant, other project terms.

Why businesses may choose this model

Fair Source is presented as a compromise: a company can publish code and potentially benefit from outside learning or contributions while preserving some protections for its business model. The tradeoff is that users who need unrestricted commercial use—or who may compete with the producer—must determine whether the license allows their plans.

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Bytes used Sentry and Codecov to explain the motivation. The issue says Sentry added protections after another company used Codecov software to create a competing product. That is the newsletter’s account of the episode, not independent verification of the underlying dispute. Bytes #314

How to assess a project that calls itself Fair Source

  1. Open the project’s current license. Read the license file and any linked official licensing terms; a repository label or public source listing does not establish what uses are allowed.
  2. Check your intended use. Look for restrictions on commercial use, competition, redistribution, modification, or particular classes of users, as applicable.
  3. Verify any promised transition. Find the stated open-source license, the date or period when it applies, and any conditions. Do not assume every project follows the same schedule.
  4. Confirm the current terms with official materials. The Bytes issue is dated August 15, 2024, and does not establish current license versions, terms for individual projects, or adoption across the industry. The Bytes archive confirms the issue’s title and date: Bytes archive.
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What the label does—and does not—tell you

The term signals an approach to sharing source with business-protective restrictions and a planned move to open source, according to Bytes’ 2024 summary. It does not, by itself, tell you which restrictions apply, how long they last, or whether a particular project’s current license meets your needs. Those answers come from the project’s current license and official guidelines.

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