A software vendor delineates the specific terms of use in an end-user license agreement (EULA). The user may agree to this contract in writing, interactively on screen (clickwrap), or by opening the box containing the software (shrink wrap licensing). License agreements are usually not negotiable.[19] Software patents grant exclusive rights to algorithms, software features, or other patentable subject matter, with coverage varying by jurisdiction. Vendors sometimes grant patent rights to the user in the license agreement.[20] The source code for a piece of propietary software is routinely handled as a trade secret.[21] Software can be made available with fewer restrictions on licensing or source-code access; software that satisfies certain conditions of freedom and openness is known as "free" or "open-source."[22]
Some proprietary software is released by their owner at end-of-life as open-source or source available software, often to prevent the software from becoming unsupported and unavailable abandonware.[46][47][48] 3D Realms and id Software are famous for the practice of releasing closed source software into the open source.[further explanation needed] Some of those kinds are free-of-charge downloads (freeware), some are still commercially sold (e.g. Arx Fatalis).[further explanation needed] More examples of formerly closed-source software in the List of commercial software with available source code and List of commercial video games with available source code.
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Proprietary software is not synonymous with commercial software,[49][50] although the two terms are sometimes used synonymously in articles about free software.[51][52] Proprietary software can be distributed at no cost or for a fee, and free software can be distributed at no cost or for a fee.[53] The difference is that whether proprietary software can be distributed, and what the fee would be, is at the proprietor's discretion. With free software, anyone who has a copy can decide whether, and how much, to charge for a copy or related services.[54]
Proprietary software generally creates greater commercial activity over free software, especially in regard to market revenues.[56] Proprietary software is often sold with a license that gives the end user right to use the software.
Software distributions considered as proprietary may in fact incorporate a "mixed source" model including both free and non-free software in the same distribution.[57] Most if not all so-called proprietary UNIX distributions are mixed source software, bundling open-source components like BIND, Sendmail, X Window System, DHCP, and others along with a purely proprietary kernel and system utilities.[58][59]
Some free software packages are also simultaneously available under proprietary terms. Examples include MySQL, Sendmail and ssh. The original copyright holders for a work of free software, even copyleft free software, can use dual-licensing to allow themselves or others to redistribute proprietary versions. Non-copyleft free software (i.e. software distributed under a permissive free software license or released to the public domain) allows anyone to make proprietary redistributions.[60][61] Free software that depends on proprietary software is considered "trapped" by the Free Software Foundation. This includes software written only for Microsoft Windows,[62] or software that could only run on Java, before it became free software.[63]
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