In the open-source world, the choice of license shapes how software can be used, shared, and monetized. One of the most commercially significant—and sometimes controversial—licenses is the Affero General Public License (AGPL). Born from the same family as the GPL, AGPL adds a powerful twist: it extends copyleft obligations to software offered over a network. For companies building or deploying open-source tools in the cloud era, this has major business implications.
What Is the AGPL?
AGPL (GNU Affero General Public License) is a free software license published by the Free Software Foundation in 2007. It’s a copyleft license like the GPL, meaning that if you modify AGPL-licensed software and redistribute it, you must also make your source code publicly available under the same license.
However, AGPL goes one step further: if you host a modified version of the software and offer it as a service (e.g., via a web app), you must still provide the complete source code—even if you never “distribute” the software traditionally.
Why It Matters Commercially
This “network use” clause makes AGPL especially powerful—and controversial—in the era of cloud computing. Under most permissive or even GPL-style licenses, companies can take open-source software, modify it, and deploy it as part of a commercial SaaS product without sharing changes. AGPL blocks this.
Key Commercial Implications:
- Barrier to SaaS Exploitation
AGPL prevents cloud giants or SaaS startups from quietly monetizing someone else’s open-source work without contributing back. This has led to its adoption by companies aiming to protect their commercial edge, such as MongoDB (before switching to SSPL) and others. - Dual Licensing Strategy
Because this license is restrictive, some vendors use it to encourage commercial licensing. If a company wants to avoid AGPL’s obligations, they can buy a commercial license—this is how companies like Aiven, ScyllaDB, and earlier MongoDB generate revenue. - Enterprise Pushback
Many enterprise buyers and legal teams reject AGPL outright. They fear accidental compliance violations or legal ambiguity when using this license’s components in internal tools or customer-facing platforms. This can limit adoption or require companies to replace AGPL software with alternatives. - Compliance and Due Diligence
In M&A or funding rounds, the presence of AGPL-licensed code in a product often triggers additional legal scrutiny. Investors want to ensure there’s no risk of forced code disclosure or IP contamination.
Conclusion
The AGPL reflects an effort to adapt open-source licensing to modern, cloud-based software delivery. By extending copyleft to network interactions, it aims to preserve the values of openness and reciprocity in a landscape where traditional distribution no longer applies.
For some, this license is a safeguard that ensures fair use and contribution. For others, it raises legal and operational concerns. As with any license, the decision to use—or avoid—AGPL depends on a careful balance between technical goals, business models, and legal risk.
Whether embraced or avoided, AGPL remains a significant part of the open-source licensing ecosystem—one that continues to shape the conversation around freedom, fairness, and commercial use in software.
Note: The preceding text is provided for informational purposes only and does not constitute legal nor business advice. The views expressed in the text do not necessarily represent the views of Fossity or any other organization or entity.