One of our most frequently asked questions from current and potential clients is, “What is the difference between using MZ Automation’s libraries under the open-source GNU General Public License version 3, or GPLv3, versus using them under one of our commercial licenses?” This article aims to tackle defining the difference between our GPLv3 license and our commercial license, as well as discuss the use cases, benefits, and drawbacks of both. Furthermore, the article will also explore some elements we recommend considering when deciding between GPLv3 and commercial license options. Read on to learn more, or you can also watch our YouTube video on this subject.
Defining GPLv3 and Commercial License
In short, a GPLv3 licensing option is a form of open-source licensing. Open-source licensing is a broad category of software licensing, where the GPLv3 is a subsection of this category with specific, strong copyleft license protections. According to GNU, an operating system with the goal of offering a Unix-compatible system of free software, the GNU GPL is “a series of widely used free software licenses that guarantee end users the freedom to run, study, share, and modify the software.” A General Public License grants users the right to: download and run the software, make changes to the software, redistribute copies of the software, as well as modify and distribute copies of the software as new versions. One caveat to point out is that the GPLv3 does not generally require users to disclose modifications that are made and used entirely internally without distributing the covered software.
However, the copyleft obligations become relevant when the software is distributed, or “conveyed,” to another party. For example, if an organization integrates MZ Automation’s GPLv3 IEC61850 library into its own application in a manner that creates a single covered work, and then distributes or sells copies of that application, the complete covered work must generally be licensed under GPLv3, and the corresponding source code must be made available to the recipients. This does not necessarily mean posting the source code publicly for everyone, but the recipients must receive, or be able to obtain, the corresponding source code and the rights granted by GPLv3.
By contrast, MZ Automation’s commercial license is an alternative proprietary license under which customers are granted defined rights to use and distribute the library outside the requirements of GPLv3. It allows customers to integrate the library into closed-source products and distribute those products within the agreed license scope without being required by GPLv3 to disclose the corresponding source code. Commercial licenses normally involve a license fee and a written agreement defining the permitted products, entities, distribution rights, and other conditions of use.
It is important to clarify that GPLv3 software may also be used commercially and may even be sold. The relevant distinction is therefore not simply “commercial software versus open-source software,” but whether the user is willing and able to comply with GPLv3 or instead requires alternative commercial licensing terms that allow the resulting application to remain closed-source.
License Use Cases
MZ Automation provides both open-source and commercial licenses for both IEC60870 and IEC61850 protocol libraries. We can do this because we own the original copyright to the source code. Although the open-source libraries do not generate profits, we believe that these GPLs create value for the community by granting access to these libraries for research and improvement purposes under GPLv3 requirements, whereas the commercial licenses eliminate these obligations and allow our customers to access a more customized and fully supported proprietary option for commercial applications.
Throughout our twelve years of experience distributing both open-source and commercial software, we have seen a wide variety of use cases for both options. Regarding the former, the most common organizations we have seen benefit from our open-source libraries include universities, researchers, and hobbyist developers, testing and modifying the source code while also releasing their findings back to the greater community. The commercial license is typically more applicable to clients using the source code to develop products and conduct projects that require proprietary control over the customized source code and its distribution.
Benefits and Drawbacks
Now that this article has defined both GPLv3 and commercial license options, as well as their respective use cases, we can now move on to discussing the benefits and drawbacks of both, beginning with GPLv3:
Benefits of an open-source license include its initial cost-effectiveness and immediate access to the code; therefore, reducing or even eliminating the need for monetary resources and time allocation for obtaining the source code. Its transparent source code also enables users to independently examine, test, learn from, and modify the software according to their requirements.
However, alongside these benefits, it is also crucial to consider the potential drawbacks of using software under GPLv3. As already mentioned, when a covered work is distributed, the GPLv3 generally requires the corresponding source code to be provided to the recipients under the same license. Therefore, organizations distributing products that they intend to keep proprietary must consider the potential disclosure of their own application source code and the resulting competitive and intellectual-property risks. In addition, specific to MZ Automation’s GPLs, such libraries are provided without a contractual entitlement to professional support, maintenance, portal access, or commercially licensed features. Public open-source releases may remain available, but commercial customers with active Maintenance and Support services receive the professional assistance, maintenance services, documentation, examples, and update access defined in their agreements.
Opposing the open-source license option, commercial licenses allow customers to develop and distribute closed-source applications within the agreed license scope. When accompanied by MZ Automation’s active Maintenance and Support services, customers also receive access to our support team, customer documentation, sample projects, portal resources, and maintained library releases. The customer’s own application and permitted modifications may remain proprietary, subject to the terms of the applicable agreement. Of course, a commercial license also accompanies the drawbacks of the time and money it requires to purchase the license, as well as the potential restrictions of a license agreement.
Recommended Considerations
Based on this information regarding the pros and cons of a GPLv3 versus commercial license, there are multiple considerations that should be taken into account when deciding between the two.
First, and perhaps most importantly, a risk analysis should be completed to determine whether a commercial or open-source license is more applicable. Ask yourself, will you be distributing a commercial application that uses this source code? If so, can your organization afford to expose its proprietary intellectual property to the public and your competitors under the GPLv3 requirements? Lastly, do you expect to require support, contractual maintenance, customer documentation, portal resources, commercially licensed features, or timely access to maintained releases in order to efficiently use the source code?
If your answers to these questions are yes, a commercial license is generally recommended in order to best execute your project or product goals. Below is an example of one of our customers who used our commercial license option to gain an advantage in the field.
Selected References
MZ Automation successfully delivered an engagement with a leading energy and automation company, focused on the implementation of MZ Automation’s IEC61850 protocol library in line with Enedis eDEIE requirements. This covered the reliable integration of an IEC61850 MMS Server compliant with the communication model, supporting dynamic data modeling and seamless interoperability with tools and simulators.
The solution was designed with a strong commercial focus on long-term maintainability, scalability, and repeatability across European markets, enabling rapid adaptation to national grid operator requirements. By leveraging a standardized and proven IEC61850 foundation, the customer benefitted from reduced integration risk, accelerated customer certification timelines, and established a robust baseline fully aligned with IEC61850, while also preparing the platform for future cybersecurity and advanced communication enhancements.
If you have any further questions, please do not hesitate to contact us.