What Is Fair Code?
A new wave of software licenses is challenging open source norms by keeping code public but restricting how it can be used commercially.
Welcome back to Open Pioneers #37 - your weekly notes on open source.
A few years ago, “open source” had a clear meaning: the code was free to use, modify, and redistribute — commercially or not. Today, we’re seeing a rise in what’s being called “Fair Code” — software that looks like open source, but comes with commercial restrictions.
As more companies adopt this model, developers are asking: What exactly is Fair Code, and is it… fair?
The Basics
A Fair Code license allows you to access, use, and modify the source code — but usually prohibits certain types of commercial use, like offering the software as a paid service or selling it as part of a product. The term was popularized by companies like n8n and Sentry who wanted a middle ground between full open source and closed proprietary software.
Unlike OSI-approved open source licenses (MIT, Apache, GPL), Fair Code licenses violate the principle of non-discrimination: they restrict how and where the software can be used — usually to protect the author’s business.
Why Fair Code Exists
The Fair Code movement is largely a response to what some call the “AWS problem” — big companies taking open source software, wrapping it in a cloud service, and profiting without giving back. Tools like ElasticSearch, MongoDB, and Terraform have changed licenses in recent years to prevent this. The creators argue: we built it, we maintain it, why should others profit without contributing?
Fair Code licenses give them leverage. The Business Source License (BSL), for example, used by MariaDB, HashiCorp, and others, blocks competing services — but often includes a time delay, after which the code becomes truly open source.
Fair Code Supporters Say…
Fair Code supporters see it as a way to fund sustainable development without going fully closed. The idea is to keep software transparent and collaborative — but ask commercial users to pay their fair share.
And for most devs? These licenses don’t matter. You can still clone the repo, self-host the tool, hack on it, and use it internally — just don’t try to turn it into a business.
Some even argue it’s more fair than permissive open source: it gives startups a way to grow without being crushed by cloud giants.
Fair Code Critics Say…
Purists argue Fair Code isn’t open source — and shouldn’t be called that. They warn it creates confusion, legal grey zones, and a slippery slope away from the open ecosystem we’ve all benefited from.
Some see it as a bait: companies build communities on open principles, but gatekeep the commercial opportunities for themselves.
There’s also the trust factor. Fair Code projects are often vendor-controlled with custom licenses. Future license changes could break your usage, and you're at the mercy of the company behind it.
Should You Use Fair Code Software?
If you’re a developer building a product: Read the license. If you're not competing with the author, you’re often fine — but don’t assume it's “just like MIT.” If the tool is business-critical, ask: What if we need to fork this? What if the company disappears?
If you’re a maintainer or startup founder: Fair Code could offer sustainability without going fully closed. But it might limit adoption or scare off contributors. If you go this route, be transparent and clear about your reasons. Some devs will understand — some won’t.
Fair = Open?
Fair Code is here to stay, whether or not the open source community likes it. For some, it’s a pragmatic response to economic realities. For others, it’s a threat to the core freedoms that built the open web.
As developers, we now need to look a little closer at the licenses behind the tools we use — and decide where we draw the line between open and fair.
New & Hot Open Source Projects 🔥
Open Source DeepWiki: An AI-powered wiki generator for GitHub/Gitlab/Bitbucket repositories. GitHub
CoRT (Chain of Recursive Thoughts): CoRT makes AI models recursively think about their responses, generate alternatives, and pick the best one. It's like giving the AI the ability to doubt itself and try again... and again... and again. GitHub
No-as-a-Service: A simple API that returns a random rejection reason. Use it when you need a realistic excuse, a fun “no,” or want to simulate being turned down in style. GitHub
Open Source News 🗞️
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Until next week,
Jonathan (@jonathimer)