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MIT and Apache 2.0 are permissive licenses: you can generally use, modify, and redistribute the code, including in commercial products, if you preserve the required notices. GPLv3 and AGPLv3 are copyleft licenses: commercial use is allowed, but distributing a covered derivative brings source-code and license obligations. AGPLv3 adds a network-interaction condition that can matter to SaaS operators. Apache 2.0 code can be included in a GPLv3 project, but that compatibility is directional, not reciprocal.
MIT, Apache 2.0, GPLv3, and AGPLv3 at a glance
| License | Permission model | Main obligation when you distribute | Network use | Patent treatment |
|---|---|---|---|---|
| MIT | Permissive | Keep the copyright and permission notice and the warranty disclaimer. | No additional network-interaction condition is identified. | The short license does not add Apache-style patent licensing and termination clauses. |
| Apache License 2.0 | Permissive | Preserve license and attribution information, follow NOTICE requirements when a NOTICE file applies, and retain the disclaimer. | No additional network-interaction condition is identified. | Express patent licensing and patent-termination provisions. |
| GPLv3 | Strong copyleft | For a distributed covered work or derivative, comply with GPLv3 licensing and corresponding-source obligations. | Traditional GPL distribution trigger; network use alone is not the additional trigger described for AGPLv3. | GPLv3 contains its own patent language. |
| AGPLv3 | Strong copyleft with a network condition | Meet GPLv3-based source and licensing duties for covered derivatives and the AGPL network-interaction requirement. | Users who interact with the program over a network must be able to receive the corresponding source under the license terms. | Based on GPLv3 and includes GPLv3 patent language. |
The practical dividing line is not whether a license permits commercial activity. All four can be used in commercial contexts. The dividing line is what happens when you redistribute a covered program, a modified version, or a combined derivative, and whether people use it through a network service.
What an open-source license actually controls
Copyright law normally gives the copyright holder control over copying, modification, and distribution. An open-source license is the permission to perform those acts under stated conditions. Without a license, publishing source code does not automatically grant those permissions.
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Read the license attached to each dependency, including its exact identifier and version. A repository label such as “GPL” is incomplete if the project has selected GPLv2, GPLv3, or a dual-license arrangement. The obligations can differ materially between versions.
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Distribution is the key GPL question
GPLv3 and AGPLv3 obligations become important when a covered work is conveyed or distributed, and when your own code forms a derivative or combined work under the applicable legal analysis. Merely running an unmodified program privately is different from distributing it. Whether two components are separate programs, linked into one work, or otherwise combined is fact-dependent; a license notice alone cannot settle that boundary.
Commercial use is not the same as unrestricted use
A company can sell a product containing MIT, Apache 2.0, GPLv3, or AGPLv3 software. Copyleft does not ban charging money. It changes the conditions attached to the covered code and, in some cases, the derivative work you distribute. A commercial release can therefore be lawful while still requiring source delivery, license notices, or a network source offer.
MIT License: short, permissive, and notice-focused
What MIT permits
The standard MIT license grants broad permission to use, copy, modify, merge, publish, distribute, sublicense, and sell copies of the software. That makes it attractive for libraries intended to be embedded in proprietary applications, internal tools, or products with a separate commercial license.
What you must preserve
When you redistribute MIT-licensed code or a substantial portion of it, keep the copyright notice, permission notice, and warranty disclaimer with the distribution. Put the text in the project’s license file, a third-party notices screen, documentation, or another location that remains readable and accessible in the shipped product.
What MIT does not promise
MIT software is provided without a warranty under its standard disclaimer. The license does not promise that the code is free of third-party patent claims, trademark rights, or other obligations outside the copyright license. Audit dependencies and branding separately, and verify the canonical license text used by the project rather than copying a shortened summary.
Apache License 2.0: permissive licensing with more machinery
Permissions and notices
Apache 2.0 permits use, modification, reproduction, distribution, and sublicensing, including in proprietary products. Its longer text is more prescriptive than MIT’s about attribution, modifications, license notices, and patent rights.
If a distribution includes a NOTICE file, the Apache Software Foundation’s official text says: “If the Work includes a ‘NOTICE’ text file as part of its distribution, then any Derivative Works that You distribute must include a readable copy of the attribution notices contained within such NOTICE file…” Preserve the applicable NOTICE content; do not assume that retaining only a copyright line satisfies every Apache requirement.
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Patent license and termination
Apache 2.0 includes an express patent license from contributors for patent claims necessarily infringed by their contribution or the combination described by the work. It also contains a patent-termination provision: initiating patent litigation alleging that the work or a contribution infringes can terminate the patent license granted to the litigant. These provisions are a major reason engineering teams may prefer Apache 2.0 when explicit patent treatment matters.
Apache compliance in a product
- Ship a copy of the Apache 2.0 license.
- Preserve required copyright and attribution notices.
- Include readable NOTICE attributions when the distributed work contains a NOTICE file.
- Mark significant modifications where the license calls for that information.
- Keep Apache-licensed components identifiable in your bill of materials and release records.
GPLv3: copyleft triggered by distribution
What GPLv3 allows
GPLv3 permits commercial use, charging for copies, modification, and redistribution. The price is that a distributor of a covered work or derivative must follow GPLv3 conditions rather than adding proprietary restrictions that conflict with the license.
Source-code obligations
When you distribute a GPLv3-covered derivative, recipients must receive the corresponding source through one of the methods allowed by GPLv3, together with the license and required notices. The source obligation covers the material needed to build and modify the corresponding executable, subject to the license’s definitions and exclusions. A download link that disappears, omitting build scripts or required source components, can fail to provide a meaningful corresponding-source offer.
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Combining GPL code with your code
The difficult question is whether your code and the GPL component form one derivative work. Static or dynamic linking, plugins, shared interfaces, generated code, and separate-process architectures can produce different legal analyses. Do not infer the answer solely from how a package manager installs a dependency. Document the architecture, identify the exact GPL version, and obtain legal advice when the boundary affects a commercial release.
Private deployment versus distribution
A company that modifies GPL software solely for internal use generally does not trigger the distribution-based source requirement merely by running it inside its own organization. Providing the program or a covered derivative to customers, contractors, or other external recipients is a different event and requires a distribution review.
AGPLv3: GPL-style copyleft with a SaaS condition
The additional network term
AGPLv3 is based on GPLv3 but adds a condition aimed at network-interactive software. The Free Software Foundation’s license overview states: “The GNU Affero General Public License is based on the GNU GPL, but has an additional term to allow users who interact with the licensed software over a network to receive the source for that program.”
That means a service operator cannot assume that keeping all modified code on a server avoids every source obligation. If users interact with a covered AGPL program over a network, the operator must analyze how to provide the corresponding source under AGPL terms, including source for covered modifications.
What AGPL does not automatically cover
AGPL does not turn every line of a SaaS codebase into AGPL code merely because an AGPL component is present. The scope depends on whether your code is a covered derivative or otherwise subject to the license. Separate services, independent libraries, and communications across a defined interface can require different analyses. Treat the network provision as a trigger to investigate, not as a shortcut that answers every architectural question.
AGPL decisions for service operators
- Identify every AGPL component and the exact version.
- Record whether users directly interact with that component’s functionality over a network.
- Determine what modifications and combined code are covered.
- Design a durable source-delivery path before launch, not after a user request.
- Have counsel review the boundary between the AGPL component and unrelated proprietary services.
Apache 2.0 and GPL compatibility is directional
The Apache Software Foundation’s compatibility guidance states: “Apache 2 software can therefore be included in GPLv3 projects, because the GPLv3 license accepts our software into GPLv3 works.” In that arrangement, the resulting derivative is distributed under GPLv3, and Apache notices and other applicable conditions still need to be respected.
The reverse assumption is unsafe. GPLv3 code cannot simply be placed into an Apache-licensed project when doing so would make Apache code part of a GPLv3 derivative. The same Apache guidance notes the Free Software Foundation’s position that Apache 2.0 is not compatible with GPLv2. Therefore, a project that combines Apache 2.0, GPLv3, GPLv2, or AGPLv3 components must check the exact versions and the direction of the combination.
Compatibility checks before combining components
- Write down the license identifier and version for every dependency.
- Separate direct dependencies, transitive dependencies, generated files, and copied snippets.
- Determine whether the components form one derivative work or remain separate works.
- Apply the stricter downstream license where the combination is a GPLv3 derivative.
- Check whether GPLv2-only code blocks the proposed combination.
- Review AGPL network obligations independently; ordinary GPL compatibility does not remove that additional condition.
- Record exceptions, dual-license offers, and separately distributed libraries instead of treating them as one undifferentiated codebase.
Choosing a license for a SaaS project
Choose MIT when adoption and simplicity are priorities
MIT is often suitable when you want users to embed the project in proprietary applications with a small compliance burden. The trade-off is limited control over downstream redistribution: recipients can modify the code and keep their modifications private, provided they preserve the required notices and disclaimer.
Choose Apache 2.0 when you want permissive use plus explicit patent terms
Apache 2.0 offers a permissive model while spelling out patent licensing, patent termination, attribution, and NOTICE mechanics. It can be a better fit for projects where contributors and adopters need those provisions documented in the license itself.
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GPLv3 is appropriate when you want recipients of distributed derivatives to receive source and the same freedoms. It can work in a commercial product, but your release process must support corresponding-source delivery and GPL-compliant notices.
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Choose AGPLv3 when network users should receive source to covered server changes
AGPLv3 is the relevant choice when the project’s goal includes reciprocity from hosted deployments. It makes the network interaction explicit, so operators offering the software as a service must plan for source availability rather than relying on a distribution-only interpretation of GPL obligations.
A practical compliance workflow
- Inventory. Generate a complete dependency list, including transitive packages, copied files, examples, and generated code.
- Verify. Open each dependency’s license file and confirm the exact identifier and version. Do not rely only on a package registry label.
- Classify. Mark each item as MIT, Apache 2.0, GPLv3, AGPLv3, dual-licensed, or requiring separate review.
- Map distribution. List every artifact sent to customers, app stores, partners, contractors, or downloadable users. Include container images, installers, firmware, and source bundles.
- Analyze combinations. For GPL and AGPL components, document why the architecture is or is not a derivative work and identify which source must be offered.
- Preserve notices. Ship license texts, copyright notices, Apache NOTICE attributions, and modification notices in a readable location.
- Prepare source delivery. For a GPLv3 or AGPLv3 distribution, keep the corresponding source, build instructions, and offer mechanism synchronized with each release.
- Review SaaS exposure. For AGPLv3, test whether network users interact with the licensed program and make the source path available as required.
- Escalate edge cases. Obtain professional legal review when derivative-work boundaries, patent assertions, dual licensing, or mixed GPL versions affect a commercial launch.
Common mistakes and how to correct them
“Open source means no obligations”
Correction: every license has conditions. MIT and Apache 2.0 mainly require notice and attribution work; GPLv3 and AGPLv3 add copyleft and source-related duties.
“Commercial use is forbidden under GPL”
Correction: GPL permits commercial activity. The obligation is to preserve the freedoms and source access required when you distribute a covered work or derivative.
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“A private SaaS deployment never matters”
Correction: AGPLv3 specifically addresses users interacting over a network. Review the network condition before deploying modified AGPL software as a service.
“Apache 2.0 and GPL are interchangeable”
Correction: Apache 2.0 to GPLv3 compatibility is directional, and Apache guidance records incompatibility with GPLv2. Check versions and the resulting license of the combined work.
“A package manager handled compliance”
Correction: installation tools do not reliably preserve NOTICE files, source offers, or project-specific exceptions. Keep a human-reviewed bill of materials and release checklist.
Bottom line
Use MIT for the lightest permissive notice model, Apache 2.0 for permissive licensing with explicit patent and NOTICE provisions, GPLv3 when distributed derivatives should remain copyleft, and AGPLv3 when network users should be able to obtain source for covered server changes. Before shipping, verify every license version, preserve all notices, analyze derivative-work boundaries, and have a qualified lawyer review disputed or commercially significant cases.
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