Java 17 Licensing: Free Use
- Free Use Conditions: Java 17 is free under the NFTC agreement if only security patches released under this agreement are applied.
- No Mandatory Updates: Free to use without additional licensing as long as no older updates (after 2-3 years) are applied.
- Commercial Features: A commercial license is required to use features like Java Flight Recorder, Java Mission Control, Advanced Management Console, and Usage Tracker.
Java 17 Licensing: Free Use and Conditions
Oracle Java SE 17, a Long-Term Support (LTS) version, initially provided free usage conditions under the No-Fee Terms and Conditions (NFTC). However, as of September 2024, Oracle has transitioned Java 17 licensing to the Oracle Technology Network (OTN) License Agreement.
This major shift has important implications for how Java 17 can be used and significantly restricts free commercial usage. Understanding these changes is critical to maintaining compliance, avoiding legal issues, and controlling software licensing costs.
Transition from NFTC to OTN Licensing (Effective September 2024)
Previous Licensing under NFTC (Until JDK 17.0.12)
Initially, Oracle Java SE 17 was available under the NFTC, allowing certain free-use conditions such as:
- Personal and non-commercial purposes.
- Internal development, testing, and evaluation.
- Limited internal business usage without commercial features.
New Licensing under OTN License Agreement (Starting JDK 17.0.13)
Beginning with JDK 17.0.13, released after September 2024, Oracle transitioned Java SE 17 from NFTC to the OTN License. Under this new agreement:
- Free usage is strictly limited to specific purposes, excluding commercial or production deployments.
- Commercial or business production usage requires a paid Oracle Java subscription.
- Oracle enforces these terms strictly through regular audits and monitoring.
Permitted Free Use under OTN License (JDK 17.0.13 onwards)
Oracle’s new OTN License clearly defines allowable free usage scenarios. Organizations and individuals must strictly adhere to these definitions to avoid licensing non-compliance.
Personal Use
- Oracle continues to permit free use of Java 17 under OTN licensing for personal, non-commercial projects.
- Examples: Individual hobby projects, personal programming education, and home use.
Development and Testing
- Free use for internal development, prototyping, and testing activities within an organization remains allowed under OTN terms.
- Example: Developers building prototypes or conducting internal application testing before production.
Demonstrating Applications
- Organizations may use Java SE 17 to demonstrate software functionality to potential customers without purchasing a subscription.
- Example: Software vendors conducting product demonstrations in sales meetings.
When Commercial Licensing is Required (JDK 17.0.13 onwards)
With the shift to the OTN License, Oracle Java SE 17 requires a paid subscription for all commercial and production uses. Specific scenarios mandating commercial licensing include:
Production Deployment
- Deploying Java-based applications in commercial production environments necessitates purchasing Oracle’s Java subscription.
- Example: Businesses running Java 17 applications that support operational, customer-facing, or revenue-generating services.
Internal Business Operations
- Usage of Java SE 17 to support internal operational systems or critical business processes now clearly requires a subscription.
- Examples: Enterprise Resource Planning (ERP) systems, financial services applications, or internal data processing systems.
Usage of Oracle Commercial Features
The commercial features available in Java 17, such as Java Flight Recorder (JFR), Java Mission Control (JMC), Advanced Management Console (AMC), and Java Usage Tracker, explicitly require subscription licensing.
Pricing Structure for Java SE 17 Commercial Licensing
Oracle’s commercial licensing for Java SE 17 is based on the Employee License Metric, introduced in 2023. Pricing depends on the total number of employees in the organization, irrespective of the actual Java users.
Employee-Based Pricing Tiers:
- 1-999 employees: $15 per employee/month
- 1,000-2,999 employees: $12 per employee/month
- 3,000-9,999 employees: $10.50 per employee/month
- 10,000-19,999 employees: $8.25 per employee/month
- 20,000-29,999 employees: $6.75 per employee/month
- 30,000-39,999 employees: $5.70 per employee/month
- 40,000-49,999 employees: $5.25 per employee/month
- 50,000+ employees: Custom-negotiated pricing directly with Oracle.
Example Cost Calculation:
For a company with 1,500 employees using Java SE 17 commercially:
- Monthly cost: 1,500 × $12 = $18,000/month
- Annual cost: $18,000 × 12 = $216,000/year
This cost covers unlimited usage of Java SE 17 within the organization, including desktops, servers, and cloud environments.
Compliance and Enforcement under the OTN License Agreement
The move to the OTN license reflects Oracle’s increased enforcement efforts. Organizations must maintain compliance to avoid financial penalties, legal disputes, and operational disruptions.
Regular Audits and Monitoring
Oracle regularly audits customers to verify compliance with licensing terms. Companies must maintain accurate records of Java deployments and employee counts and clearly document their licensing arrangements.
Documentation Requirements
Clear documentation of Java usage scenarios and licensing decisions helps mitigate audit risks. Best practices include:
- Regularly updated Java deployment records.
- Employee counts are validated quarterly.
- Detailed documentation of licensing choices and contracts.
Managing the Transition from NFTC to OTN Licensing
Organizations currently using Java 17 under NFTC must carefully evaluate their current deployments in light of the new licensing terms effective from JDK 17.0.13 onwards. Key considerations include:
Immediate Review of Java Deployments
- Identify Java 17 installations running JDK 17.0.13 or later.
- Determine whether each deployment qualifies for free use under the stricter OTN license.
Planning for Commercial Licensing
- Prepare budgets and internal resources for transitioning to subscription-based licensing.
- Evaluate commercial usage needs to identify required licenses and minimize unnecessary costs.
Alternatives to Oracle Java SE 17
Given licensing complexities and costs, organizations may consider alternatives for certain deployments:
OpenJDK 17
- An open-source implementation, functionally equivalent to Oracle Java SE 17.
- Completely free for all usage scenarios, including commercial production.
- Ideal for enterprises seeking to reduce licensing costs without compromising core Java capabilities.
Third-Party Distributions (Adoptium, Amazon Corretto)
- Community-supported and vendor-maintained Java distributions offering similar functionality and long-term support.
- Useful for non-critical, internal, or testing environments.
Practical Recommendations for Organizations
Given these licensing shifts, organizations should implement strategic steps to manage Java SE 17 effectively:
Regular Licensing Reviews
- Conduct quarterly audits of Java usage, employee counts, and compliance status.
- Immediately adjust deployments and licensing strategies upon version updates.
Strategic Usage of Free Alternatives
- Evaluate using OpenJDK for non-critical and internal environments.
- Reserve commercial Oracle Java SE licenses strictly for critical or revenue-generating applications.
Negotiating with Oracle
- Engage proactively with Oracle for custom licensing arrangements, which is particularly beneficial for large organizations that have more than 50,000 employees.
- Leverage renewal or end-of-quarter periods to negotiate favorable terms.
Conclusion: Ensuring Compliance in the New Licensing Landscape
The September 2024 transition from NFTC to the OTN License Agreement for Java SE 17 (JDK 17.0.13 onwards) significantly alters permissible free use and commercial licensing obligations. Key actions for organizations include:
- Identify Java usage scenarios aligned with OTN licensing terms.
- Conduct regular internal audits to maintain licensing compliance.
- Evaluate alternatives like OpenJDK to optimize licensing costs.
Proactive management, clear documentation, and strategic licensing decisions will enable businesses to navigate these new terms successfully and ensure ongoing compliance with Oracle’s updated licensing requirements.
