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By: Albin PJ

An Overview of Different Odoo 16 Licenses


In the expanding landscape of Odoo, an increasing number of business entities are gravitating toward its platform. Consequently, it becomes imperative for them to acquaint themselves with Odoo's licensing stipulations. It is paramount to select the appropriate license that aligns with your organization's needs. The community edition stands as an open-source offering, while the enterprise edition is subject to licensing.
Odoo furnishes a range of applications, some of which come at a cost while others are available for free. Despite concerns about altering, reselling, and creating proprietary apps, a partner well-versed in AGPL, LGPLv3, and OPL licenses can steer you toward making astute choices regarding versions and applications that will facilitate seamless and cost-efficient business operations.
Furthermore, Odoo is rooted in open-source principles. There are established guidelines and protocols governing the modification and resale of Odoo apps. Therefore, having a firm grasp of licensing allows for unimpeded business expansion, shielded from any legal entanglements arising from violations of Odoo's licensing policies, and safeguarded against potential penalties.

Odoo Community License

The Odoo community edition operates under the GNU Lesser General Public License version 3 (LGPLv3), a license derived from the GPL and administered by the Free Software Foundation Inc. The GPL, a widely adopted open-source license, grants users the right to employ the covered software for their business purposes, make modifications, and distribute it, contingent on the condition that they share the same license, including the source code.
In the case of the LGPL, licensees enjoy similar privileges as those permitted by the GPL for software utilization. However, when it comes to distribution, if the software serves as a library or dependency, it must be disseminated under the same license. Nevertheless, any newly developed software by the licensee can be distributed with source code or under any chosen license.

Odoo Enterprise License

Odoo Enterprise version v1.0 operates under a licensing model that mandates users to possess a valid subscription for executing, modifying, or employing the software. Unauthorized alterations or usage without a valid subscription are strictly prohibited. This subscription is user-based, meaning exceeding the allowed number of users is considered a violation.
Exclusive permissions for modifying and executing the Odoo Enterprise edition are granted solely to Odoo partners, except in cases where the software is deployed in a production or live environment. Any form of distribution, sale, or sublicensing of the Odoo Enterprise edition or its modified versions is strictly against the licensing terms.
However, subscribers are permitted to use Odoo modules in conjunction with the Odoo Enterprise version, irrespective of their licenses. These modules can be sourced from Odoo apps or any other compatible platform.

Odoo Free App License

Fresh, cost-free applications can be crafted for use across both the enterprise and community iterations of Odoo. Within Odoo Enterprise, users are granted the liberty to employ these complimentary applications under any license, so long as they are sourced from the Odoo apps store, all without incurring any fees.
Since the community version operates under the LGPL license, developers retain the right to publish and disseminate gratis applications under licenses of their choosing. It's imperative to bear in mind, however, that the foundational community addons must adhere strictly to the LGPLv3 licensing framework. This safeguard ensures that the essential components of the community edition remain open-source and accessible to the wider community.

Odoo Paid App License

This license pertains to paid apps available in the app store. To use these apps in compliance with legal standards, they must be either purchased or accompanied by written authorization from the original author. Similar to enterprise editions, activities such as selling, distributing, modifying, or sublicensing them are strictly prohibited. However, they can be utilized under the license as a library, for building new modules, or for importing features, provided that no direct copying from the apps occurs. Additionally, any resulting software can be distributed under alternative licenses, such as LGPL, OPL, etc., without conflicting with the proprietary license.
By comprehending the distinctions between licenses like AGPL, LGPLv3, and OPL, businesses can make informed decisions that align with their operational requirements and financial goals. Adhering to Odoo's licensing rules empowers organizations to harness their potential effectively, facilitating seamless growth without the encumbrance of legal complexities or penalties.

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