Explained: Oracle Java licensing changes (Sept - 2021)

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Explained: Oracle Java licensing changes (Sept - 2021) - read the full article about java development 2021, Software Development and from Redress Compliance - Oracle Licensing Experts on Qualified.One
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Hey guys, this is Fredrik from Redress Compliance.  Since we made our video about Java licensing weve had almost 1000 views on that video, so theres  a big interest in Java. And thats why Im making this video, because theres already been  misinformation spread around on the internet. Im here to clean it up for you. I used to work for Oracle for nine years, and for one and a half years of that I was  working in Oracles partner organization. And that organization was responsible for  negotiating different type of distribution agreements, partner agreements with Oracle  solutions [inaudible 00:00:37] and the Java licensing agreements are using that type of  language. So up to Java OTN agreement.   Obviously Im not Oracle, but after working one  and a half years with these ISV and royalty type based agreements I have some insights into how  Oracle interprets those type of contract clauses. Im here to give you my take so that you can  better understand your Java licensing risk.   Have a look at the licensing agreement, and this  is what we should be paying attention to first. And the line is your use of this program is  governed by the no-fee terms and conditions set forth below, unless you have received this  program alone or as part of another Oracle product under an Oracle license agreement, including but  not limited to the Oracle Master Agreement, in which case your use of these programs is governed  solely by such license agreement with Oracle.   What this means is that before 2019, before Oracle  introduced a Java subscription there was a Java license. Java wasnt really free before 2019.  Those customers that purchase a Java license and since before that, they cannot just say,  okay, were going to terminate our licensing agreement now and make use of this no-fee  agreement. That does not work. This is what Oracle is trying to do, theyre trying to  protect their existing support stream.   Oracle have signed very lucrative royalty  based agreement with other large software companies or companies that are building  solutions and are embedding Java. So we could argue and without knowing the details, but we  can think about the third-party companies like IBM and SAP. Im pretty certain that they are not  allowed to make use of Oracle for free, theyre paying money to Oracle. And if Oracle would simply  make this open source completely free, those companies could arguably try to force them way out  of their royalty based agreement and Oracle would lose a lot of business. So this text here is to  protect those kind of royalty based agreements.   So what if you purchased subscription last  year for 20 users? Lets say Redress Compliance purchase a Java subscription for 20 users and we  have Java 11, what would it mean? It wouldnt mean nothing because the Java OTN agreement is for  Java 11. When we would download and use Java 17 then theyre looking at this agreement. It  would be absurd if Redress Compliance buys 20 subscriptions and cannot make use of this no-fee  agreement, but IKEA, which have 100,000, if they have not purchased anything, thats absolutely not  the intention of this agreement. This agreement is valid for Java 17. If you have a subscription  agreement that is valid for previous versions, if you upgrade to Java 17 you do not need  a subscription agreement from Oracle.   Lets go down and look at the licensing  rights that Oracle is giving you. A, internally use the unmodified programs for the  purposes of developing, testing, and prototyping and demonstrating your applications, and running  the programs for your personal use and internal business operations. What is new here compared to  the Java OTN agreement is that Oracle have added this last part here, internal business operations.  This is new. In Java 11, 12, 13, 15, 16 you could not use Java for any commercial use.  This is brand new. It means that theres no limitations on what you can use it, as long as  its for internal use. And that is a big thing. Previously, if you wanted something  else you would have to use OpenJDK, now you can use the Oracle JDK binaries. The B, redistribute the unmodified programs and program documentation under the terms of  this license, provided that you do not charge your licensees any fees associated with such  distribution or use of the program, including, without limitation, fees for products that  include or are bundled or a copy of the program or services that involve the use of the distributed  program. What Oracles saying here is that you may distribute Java on the terms of this license,  provided that you do not charge your licencees any fees associated with the Java license. A normal question would be if you upgrade to Java 17 is completely freely done? If you  upgrade to Java 17 it is completely free right now. And theres a statement from Oracle about  the intentions, what will happen in the future. Lets have a look at that. Is Java 17 going to  be completely free for all time? We actually dont know. Theres nothing inside of the  licensing agreement saying that Java 17, when you apply a specific security patch that  you have to pay for a license. But lets have a look at what is the documentation that  Oracle is putting out on their website.   How long will Oracle used the  NFTC and what happens afterwards? Oracle will use the NFTC for JDK 17 and later  released. So it means that they plan to use this for not only 17 but also later usage. But  that is also not in the contract, we dont know. LTS releases such as JDK 17 will receive updates  under this license for one year after the release of the subsequent LTS. After the free use license  period Oracle intends to use the OTN license, the same currently used for Java 8 and 11 LTS  releases. What this means is that Oracle intents to give you free security updates for one year once you come up to Java 17. Oracle will release  security updates for one year on Java 17.   How long will Oracle use the NFTC and what happens  afterwards? Oracle will use the NFTC for Java 17 and later releases. LTS releases, long-term  releases such as Java 17 will receive updates under this license for one year after the release  of the subsequent LTS. After free use license period Oracle intends to use the OTN license, the  same currently used for Java 8 and 11. So yes, you will be able to use it for free for one  year and Oracle have the intention. Its not in licensing agreement, Oracle can still change  their mind about this. They might offer free updates for even longer periods, but this gives at  least customers the choice or have the option.   Ive helped over 20 companies with Java  licensing and in my experience, the companies are running Java on desktops and theyre looking  at different alternatives understanding that its commercial use. We cant even have Java on  our desktop anymore if we apply a security patch. At least those customers now have the option to  upgrade to Java 17 and you dont need to purchase a license. I think this is a great move. You might  argue, oh, but its going to cost you money if you remain on that long-term version and then you need  to upgrade to the new version. But considering Oracle have not audited any customers, and its a  pretty strong staking on here to the community.   And were going to read the Java project manager  blog post together and Im going to give you my take on it. Lets have a look. This is a blog post  posted on September 14 by Donald Smith, who is a senior director at Oracle for product management.  The title is introducing the free Java license. Oracle is making the industry leader,  Oracle JDK available for free, including all quarterly security updates.  This includes commercial and production use. The new license is the Oracle no-fee terms  and conditions NFTC license. This license for Oracle JDK permits free use for all users, even  commercial and production use. Redistribution is permitted as long as it is not for a fee.  Developers and organizations can now easily download, use, and share, and redistribute Oracle  JDK without needing a click through. Okay.   Oracle will provide these free licenses and  updates starting with Oracle JDK 17 and continue for one full year after the next LTS release,  prior versions are not affected by this change. Oracle will continue to provide Oracle OpenJDK  releases under the GPL on the same releases and schedule as it has since Java 9. So in this  executive summary I can read the language free times. The headline of this blog is called  free license. If youre in a legal dispute with Oracle, Im pretty certain that your legal  team will find this article and use it to fight against Oracle if theres any disputes  about what is free and what is not free.   Lets read further. In September 2017, Oracle  announced plans to distribute JDK under the GPL as Oracle OpenJDK, and also as the Oracle JDK  under Oracle Technology Network license, OTN. Providing Oracle OpenJDK builds under the GPL was  highly welcomed, but feedback from developers, academia and enterprises was that they wanted the  trusted, rock-solid Oracle JDK under unambiguously free terms license too. This is something thats  published, sure its not part of the contract, but whoever is using Java, and if  theres a audit or the legal dispute, this is what the legal team will be looking at. Look at the message and the signal that product management and Oracle is putting out there.  Theyre even saying here, theyre listening to the feedback from its customers, from its partners and  now theyre doing a U-turn. Would you really think that Oracle hasnt even started to do a job on  licensing audits yet? Do you think that theyre going to go back to that? Oracle appreciates  the feedback from the developer ecosystem and are pleased to announce that as of Java 17  were delivering on exactly that request. Im a big fan of Oracle software, but Im  not a big fan of Oracles business practices. They need to do more to help its customers rather  than trying to milk every dollar from them, from their support agreements. Lets continue reading. Oracle will provide Oracle JDK LTS releases under the NFTC  for at least one full year after the subsequent LTS version. It says here, for at least one year.  We dont know how long they will be doing this, and Oracle probably doesnt know either.  If you want to know more, were hosting a job or licensing training live course on  September 30. But think about what signals Oracle is giving out here. Think about what theyre  writing in this blog. Think about whats in the contract term. Think about what theyre saying  in this blog here. Theyre basically saying we heard you, you dont like it, you want to use  the Oracle JDK. Were changing our mind, were delivering on that request, as Oracle is writing.  If thats not a U-turn I dont know what is.   But obviously they cant make everything free  because then they would lose their licensing agreements for paying maintenance to Oracle, but  also the royalty business. Thats why they need to have some sort of control over Java. So Oracle  is putting this into a bit of a bag again. And if I would be working as an [inaudible 00:12:13]  and customer right now I would be thinking, okay, yes, we need to clear up the server  installations, which is going to be remaining on the older versions for quite some time. If you liked the video, please subscribe. If you think that maybe Redress Compliance can  help you with Oracle licensing you can reach us at www.redresscompliance.com  or you can send us an email at [email protected]  Thank you for watching.

Redress Compliance - Oracle Licensing Experts: Explained: Oracle Java licensing changes (Sept - 2021) - Software Development