Types of software license

A software license is a document that provides legally binding guidelines for the use and distribution of software.

Proprietary

When dealing with proprietary software, the owner of the application grants access to his product via an end-user license agreement (also known as EULA). As we’ve seen last week, this type of agreement details what your customers are entitled to do when using your software, and in which context they are able to use the application. However, users do not own the software itself. Before using an application, the customer will need to agree to the Terms & Conditions of the EULA.

Open Source

Open Source licenses work differently and allow software to be used, modified, and shared, without restriction. This also includes access to the source code of the application.

However, it’s important to make the distinction between free software and open-source software. Open-source software is free, of course, but any free software is not necessarily open-source and can be proprietary.
The distribution terms of open-source software must comply with specific criteria which are listed and available on the official on OpenSource.orgwebsite. If a piece of software meets these criteria, then it can be set as open source.

More information here