🛡️ RISK BADGE: 🔴 RESTRICTIVE (Source Available)
Executive Summary: What is it?
The Elastic License 2.0 (ELv2) is a non-copyleft "Source Available" license created by Elastic (the company behind Elasticsearch). It is NOT an Open Source license by the OSI definition. It was designed to protect software creators from "SaaS-jacking" by large cloud providers while keeping the software free for the vast majority of users.
CFO / Business Impact: What does it cost/risk?
Safe for Internal Ops. For almost every enterprise, ELv2 is a "free" license. You can use it, modify it, and run it for your own business without cost. The SaaS Restriction: You cannot host the software as a managed service for third parties. If you are an MSP or Cloud Provider, you cannot sell "InvoiceNinja-as-a-Service" using the ELv2 version. Watermark Costs: In tools like InvoiceNinja, a "White Label" fee may still apply to remove brand watermarks, which is a commercial term outside the base license.
Technical Reality: How does it work?
The ELv2 is intentionally simple, consisting of only three primary restrictions:
- No Sublicensing: You cannot rent or lease the software.
- No SaaS Provisioning: You cannot provide the software as a service where users have access to the primary functionality of the software.
- No Circumvention: You cannot remove or bypass license keys or protection mechanisms. Unlike AGPL, it does not require you to open-source your modifications.