Free Software
Free Software is software that may be used for any purpose, processed
and disseminated in it's original or modified form. This also
includes commercial use. Software that comes on the basis of this
software, you usually has to be free software as well (the principle of
copyleft and share alike).
Free Software is opposed by the proprietary or "non-free" software that
provides these freedoms or not in its entirety. This distinction was
coined by the Free Software Foundation (FSF).
Freeware
In the English language free means not only "free" but also "free".
English-speaking developers and activists decided to make the distinction with
free as in freedom and free as in free beer clear. With free software
(original printed in English: free software) refers to "free" on the
first meaning, the freedom for software users. One of the freedoms
guaranteed includes being allowed to sell free software at any price. A
portion of the licenses of free software includes a copyleft regime
(also known as share alike), which means that the freedoms may not be
restricted in the dissemination of the software.
Freeware by contrast, refers to the second meaning, "free". This
software does not vacate the user by the Free Software Foundation
liberties listed. Therefore, it is not considered as "free software".
Open Source
Open Source refers to the fact that the source code of a program is
EXPOSED. Not only is the program distributed, but also the source
code is compiled on the basis of the program. Anyone who knows the
source code can also modify it and write new programs. The knowledge
of acquaintance of the source code is important to ensure that software
can be freely distributed. Technically speaking, free software and open
source are very close together, but both terms are used by different
schools of thought. The term "open source" was developed and introduced by Eric S.
Raymond, Bruce Perens and Tim O'Reilly, the founders of the Open Source
Initiative (OSI). They believed that the vexed
issue of freedom might deter potential donors for such projects. Therefore, in the
presentation of the open source movement the freedom that free
software gives users was not mentioned. It was stressed that open
source software leads to better and cheaper applications than closed, proprietary
designs.
The Free Software Foundation, however, believes that proprietary
software must be refused on moral grounds alone, even if it would be
better than open source. Software should be transparent and verifiable.
Richard Stallman from the FSF rejects the term "open source" and the underlying
personal standpoint.
Nevertheless, supporters of both camps are working together on
projects. The GNU GPL is the most popular license even for projects
that are dominated by open-source supporters. Compromise alternative
terms such as "Free / Libre Open Source Software", which are accepted
by adherents of both positions (including Richard Stallman) show the aim of
highlighting the similarities. The term "open source software" appears
with the emphasis on the superiority of the development process, while the term "Free Software"
also includes the views of other users.