A dual-licensing model is a business model in which a company that markets a commercial software product gives its licensees the choice of two licensing models: Open Source and closed source (or "proprietary"). In this business model, a customer can choose to license the software under the terms of an Open Source license such as the GNU General Public License (GPL). Open Source licenses let licensees sublicense the product's source code to multiple levels of sub-licensees, but require re-licensing in source code format, usually on identical terms. Alternatively, the customer can choose a closed source or proprietary license with more conventional licensing terms that limit his ability to re-license the product, or restrict him to object code sublicenses only.
The theory is that the dual-licensing model helps both the free software community and the commercial software licensee. The open availability of source code lets the software be improved by those who have the right to change it under an Open Source license. The proceeds from commercial licensing help fund additional development, and help establish the product as a commercial standard.
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