Authors: Purushottam Thakur, Innova Solutions

What is the Oracle No-Fee Terms and Conditions (NFTC) license?

Oracle released Java 6 with a focus on open-source development, and currently, both the Java Development Kit (JDK) and OpenJDK versions are available. In the past, Oracle JDK was free for development use but required a license for production use until Java 8. The Oracle JDK licensing terms have changed as of 2019, and now a paid license is required for both development and production use, which has caused controversy within the Java community.

Oracle recently introduced the No-Fee Terms and Conditions (NFTC) license in September 2021, which allows users, including those in commercial and production fields, to use Oracle JDK free of charge. This applies to all scenarios, including production, due to the redistribution without a fee as of Java 17. In 2019, with the release of the Java 8_211 patch, the NFTC license changed the terms of most Oracle Technology Network (OTN) licenses, which could significantly impact the Java community. Furthermore, we will explore how Oracle’s release cycle modification, beginning with Java 10, may also affect users.

In 2023, the Java license will be modified with more general terms, which may increase business costs; however, the NFTC license has been well-received within the Java community. Below is the latest license information for every Java version released to date.

The Oracle Java JDK Versions 1-8

It is important to note that Oracle Java JDK versions 1-8 have security updates up to version 211. Reviewing the general-purpose definition in the Oracle Binary Code License Agreement (BCLA) is crucial if you use Java. It is necessary to have a Java Platform Standard Edition (Java SE) license, which should have been obtained previously if you have used Java for business purposes. Commercial features are typically licensed separately from Java BCLA, so if you want to use them, you will need an additional license from Oracle. Here is a list of the commercial features that Oracle has:

• Java Enterprise (MSI) Installer
• Java Flight Recorder
• Java Mission Control
• JRE Usage Tracking
• Java Advanced Management Console
• JRockit Mission Control, Flight Recorder, or Real-time Deterministic GC

To ensure maximum security, it is highly recommended to patch Java JDK versions 1-8 with security patch 211 or a newer version. Once installed, obtaining a Java license is mandatory unless you use Java for products mentioned in Schedule B. It is prohibited to use Oracle Java JDK versions 11-16 on clients and servers without a license; however, Oracle Java JDK 17 and beyond do not require one.

2021 Pricing Model

According to the NFTC License, using Java for commercial purposes is permissible within one year from the next release. Here is the pricing model after the free period:

There was difficulty distinguishing legitimate users within an organization because Java SE subscriptions are based on processors, while the Java SE Desktop subscriptions are based on users.

2023 Pricing Model

To avoid confusion with processors and Java users, Oracle updated its terms and conditions and simplified its licensing terms in January 2023, which is now referred to as Java SE Universal.

The Java Universal Subscription no longer includes the terms “user” and “processor” and is instead based on the number of employees within an organization.