Shared Source Licensing

UPDATE - I'm adding some good blog discussions below based on this news.


Open source licenses are source code licenses. Shared Source licenses are source code licenses. Shareware licenses are (at times) source code licenses. And what is a source code license? It is a way for a software creator to place usage terms on their property.

Source code is property.

How the creator of the software chooses to release their source code has been a very active point of discussion in the industry for years. Today, Microsoft is simplifying its source code licensing so that developers working with our technologies will be able to focus on developing great software rather than understanding a license. Our source code licensing needs to be simple and predictable.

There is no “correct” way to license source code. It is the choice of the author (individual or organization) to choose the license that works best for them. If you would like to release your code under terms that stipulate only people with purple hair who own three-legged dogs can use your code – so be it. Your potential community may be limited, but that may be what you are looking to accomplish with the license.

Today, we are announcing the availability of three new template Shared Source licenses. In this way, all of Microsoft source code releases will be under consistent terms, and thus more easy to 1use and to understand. The licenses are each 1 page or shorter. They are written in simple terms that non-lawyers should be able to follow. They are also reflective of the most modern thinking regarding source code licenses within the legal community.

The three licenses are: (check out for more info)

1) Microsoft Permissive License (Ms-PL)

2) Microsoft Community License (Ms-CL)

3) Microsoft Reference License (Ms-RL)


The Ms-PL is the least restrictive of the Microsoft source code licenses. It allows you to view, modify, and redistribute the source code for either commercial or non-commercial purposes. Under the Ms-PL, you may change the source code and share it with others. You may also charge a licensing fee for your modified work if you wish. This license is most commonly used for developer tools, applications, and components.

The MCL is a license that is best used for collaborative development projects. This type of license is commonly referred to as a reciprocal source code license and carries specific requirements if you choose to combine MCL code with your own code. The MCL allows for both non-commercial and commercial modification and redistribution of licensed software and carries a per-file reciprocal term. 

The MRL is a reference-only license that allows licensees to view source code in order to gain a deeper understanding of the inner workings of a Microsoft technology. It does not allow for modification or redistribution. This license is used primarily for technologies such as development libraries.

Microsoft has a “spectrum” of licenses under the Shared Source Initiative. But, just as with other individuals and organizations we too have seen the proliferation of source code licenses become problematic. We had 10+ Shared Source licenses and as more and more product groups sought to use source code releases as a means to work with developer communities, this number was only going to rise further.

3 is better than more than 10.

I’d like to thank two great attorneys for their work on these licenses. Steve Mutkoski and J.D. Fugate did a great job of pushing for simplicity and clarity. These guys deeply understand the nature of source licensing and the issues facing developers needing to work with the code. 



Commentary - some good, some bad - but all interesting takes on the same thing.