Sentry’s Functional Source License: Balancing Developer Freedom & Commercial Protection

A New Approach to Open Source Licensing

In the evolving landscape of open source software, Sentry—a leading application performance monitoring (APM) platform—has introduced the Functional Source License (FSL). Designed to bridge the gap between open source ideals and commercial sustainability, this innovative license aims to empower developers while curbing exploitative practices by large corporations.

Why Sentry Created the FSL

Sentry’s Chief Open Source Officer, Chad Whitacre, explains the motivation behind FSL:

“Traditional open source companies often face exploitation by well-funded entities that leverage their code without contributing back. The FSL grants freedom without enabling harmful free-riding.”

This move follows a growing trend among tech companies to protect their intellectual property while maintaining open source principles.

The Shift from Permissive to Protective Licensing

Historical Context

Sentry originally operated under the BSD 3-Clause License, a permissive model with minimal restrictions. However, in 2019, the company transitioned to the Business Source License (BSL) after encountering compe*****s who copied its code, documentation, and even marketing materials.

Key Issues with BSL:

  • Long Time Limits: Default 4-year non-compete period (shortened to 3 years by Sentry).
  • Complexity: “Additional use grant” clauses created variability, complicating compliance.

Introducing the Functional Source License

The FSL addresses these shortcomings with:

  • Shorter Timeframe: Code reverts to Apache 2.0 or MIT license after 2 years.
  • Simplified Structure: No ambiguous “additional use grant” clauses.
  • Balanced Incentives: Encourages innovation while protecting against direct competition.

Industry Reactions and Controversy

While Sentry positions FSL as a progressive solution, critics argue it strays from true open source values. Thierry Carrez, VP of the Open Source Initiative (OSI), contends:

“This is proprietary gatekeeping disguised as open source. Removing developer freedoms contradicts the ethos that made these projects successful.”

Broader Trends in Licensing

Sentry joins companies like Elastic, HashiCorp, and Grafana, which have shifted toward restrictive licenses to safeguard revenue. Key examples:

  • Elasticsearch: Switched from Apache 2.0 to source-available licenses in 2021.
  • Terraform: HashiCorp adopted similar restrictions in 2023.
  • Matrix/Element: Moved to AGPL for decentralized communication protocols.

The Future of Open Source Sustainability

The FSL reflects a broader debate: How can open source projects remain viable without sacrificing their foundational principles? Sentry’s approach offers a middle ground, but its long-term impact remains to be seen.

Key Takeaways

  • FSL prioritizes fairness: Protects developers while ensuring eventual open access.
  • Simplifies compliance: Eliminates ambiguous clauses found in BSL.
  • Industry divide persists: Some view it as pragmatic; others see it as a departure from open source ideals.

As the tech landscape evolves, licenses like FSL may become a template for companies seeking to balance innovation, collaboration, and commercial survival.


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