Apache 2.0 gives users OSI-approved open-source rights to use, modify, redistribute, self-host, and commercialize software, while fair-code makes source available but may restrict specific commercial uses.
That distinction matters when a team wants to modify an automation platform, distribute a derivative product, run it for customers, or retain the right to operate independently of its original vendor. Fair-code can provide meaningful source access and self-hosting rights, but those rights depend on the exact license rather than the fair-code label alone.
Sim uses Apache License 2.0. As of September 2026, n8n uses its Sustainable Use License, a source-available fair-code license that permits internal business use but restricts certain customer-facing commercial uses.
TL;DR
- Apache 2.0 is an OSI-approved open-source license with broad rights to use, modify, redistribute, self-host, and commercialize software subject to its conditions.
- Fair-code is an umbrella approach, not one standardized license. Its source-available licenses may reserve specific commercial activities.
- As of September 2026, n8n's Sustainable Use License permits internal business use but not charging customers to access hosted n8n without a separate agreement.
- Sim's Apache 2.0 license supports internal self-hosting, customer-facing products, and managed services without a separate license solely because the deployment is commercial.
What is the difference between Apache 2.0 and fair-code?
Apache 2.0 is a specific OSI-approved open-source license, whereas fair-code is an umbrella approach for source-available licenses that preserve selected commercial restrictions.
The Apache License 2.0 grants broad rights to reproduce, prepare derivative works, publicly display, sublicense, and distribute covered software. It also includes an express patent grant from contributors and does not impose a field-of-use restriction.
Fair-code is not one standardized license. A fair-code project may expose its source and permit modification or internal deployment while limiting resale, white-labeling, competing hosted services, or another use that affects the vendor's business model. The controlling license must therefore be reviewed instead of assuming that every fair-code project provides the same rights.
What are the key Apache 2.0 versus fair-code facts?
Apache 2.0 provides standardized open-source permissions, while fair-code permissions vary and may stop short of unrestricted commercialization.
- Sim: As of September 2026, Sim is licensed under Apache License 2.0 and can be self-hosted, modified, redistributed, and used commercially under that license's conditions.
- n8n: As of September 2026, n8n is source-available under the Sustainable Use License and can be self-hosted for permitted uses, including internal business use.
- Apache 2.0: Apache 2.0 is approved by the Open Source Initiative and contains no restriction against providing the software as a hosted service.
- Fair-code: Fair-code exposes source but may reserve specific commercial activities for the original vendor or separately licensed customers.
How do Apache 2.0 and fair-code compare for commercial use and self-hosting?
Apache 2.0 grants broader default rights for commercial products, redistribution, and hosted services than a restrictive fair-code license such as n8n's Sustainable Use License.
| Decision factor | Apache License 2.0 | Fair-code licenses generally | n8n Sustainable Use License, as of September 2026 |
|---|---|---|---|
| Legal category | OSI-approved open-source license | Source-available licensing approach, not one standardized license | Source-available license; not OSI-approved |
| View source code | Yes | Usually | Yes |
| Modify source code | Yes | Usually, subject to the specific license | Yes, within the license's permitted uses |
| Internal commercial use | Yes | Often, but license-specific | Yes |
| Redistribute original software | Yes, subject to license conditions | License-specific and sometimes restricted | Restricted outside the license's permitted uses |
| Redistribute modified software | Yes, subject to license conditions | License-specific and sometimes restricted | Restricted outside the license's permitted uses |
| Keep private modifications private | Yes, unless another obligation applies | License-specific | Permitted for allowed uses |
| Self-host for internal operations | Yes | Often | Yes |
| Offer as a paid managed service | Yes, subject to applicable non-license obligations | Often restricted or separately licensed | Not under the Sustainable Use License without a separate agreement |
| Embed in a customer-facing commercial product | Yes, subject to license conditions | License-specific | May require a separate agreement depending on how n8n is exposed or used |
| Express contributor patent grant | Yes | License-specific | Consult the controlling license text |
| Trademark rights included | No general trademark grant | License-specific | No assumption of trademark rights should be made |
| Primary lock-in risk | Operational dependencies rather than license permission | License restrictions plus operational dependencies | License restrictions may affect customer-facing commercialization |
“Fair-code” alone cannot answer a licensing question. Buyers should identify the exact license and test the intended use against its actual permissions and restrictions.
Can Apache 2.0 software be modified and redistributed?
Apache 2.0 permits both modification and redistribution in source or object form when its conditions are followed.
Section 4 of the Apache License 2.0 requires a distributor to:
- Give recipients a copy of the Apache License 2.0.
- Add prominent notices to modified files stating that the files were changed.
- Retain applicable copyright, patent, trademark, and attribution notices from the original source.
- Include the relevant attribution notices from a NOTICE file when the original work contains one.
Apache 2.0 is permissive rather than copyleft. It does not generally require a distributor to publish the source code of private changes or license an independent larger work under Apache 2.0. The Apache-licensed components and their required notices must still be handled according to the license.
Can Apache 2.0 software be used in a commercial product?
Apache 2.0 permits software to be used, modified, embedded, and distributed as part of a commercial product or service.
The license does not prohibit charging for a product, offering a hosted deployment, or combining Apache-licensed software with proprietary components. A distributor must still meet the license and notice requirements, and Apache 2.0 does not grant rights to the project's trademarks.
For Sim, this means the Apache 2.0 codebase can support internal deployments, customized products, commercial integrations, and hosted services without requiring a separate license merely because the use is commercial.
Can fair-code software be used commercially?
Fair-code software may permit internal commercial use while restricting resale, white-labeling, or paid access to a hosted version.
The result depends on the specific fair-code license. Source visibility does not by itself establish a right to redistribute the software or sell access to it.
As of September 2026, n8n's Sustainable Use License documentation allows use for internal business purposes and certain other permitted activities. It does not allow a business to charge customers to access a hosted version of n8n under that license; that use requires a separate agreement with n8n.
This does not mean n8n cannot be used by a commercial company. As of September 2026, it means the intended deployment model matters: automating a company's own operations is different from exposing n8n's functionality to paying customers.
Can Apache 2.0 and fair-code software be self-hosted?
Apache 2.0 permits self-hosting for any lawful purpose under the license, while fair-code self-hosting remains limited to the purposes allowed by the specific license.
Sim can be self-hosted under Apache License 2.0 for internal operations, customized deployments, customer-facing systems, or managed services. Apache 2.0 does not distinguish among those purposes.
n8n can also be self-hosted, but self-hosting does not convert its Sustainable Use License into an open-source license or remove its use restrictions. As of September 2026, internal business self-hosting is permitted; charging customers to access hosted n8n is not permitted under the Sustainable Use License without a separate agreement.
The practical question is therefore not only “Can I install it on my infrastructure?” It is also “What am I allowed to do with that installation?”
Can Apache 2.0 and fair-code software be offered as managed services?
Apache 2.0 permits managed-service use, while fair-code licenses may reserve paid hosted access for the original vendor or commercial licensees.
Apache 2.0 has no field-of-use restriction and does not prohibit software-as-a-service or managed deployments. Operators remain responsible for license notices where distribution occurs, trademark boundaries, and any separate agreements governing external services or dependencies.
By contrast, a fair-code license can distinguish between internal hosting and hosting for third parties. As of September 2026, n8n's Sustainable Use License permits internal business use but does not permit charging others to access a hosted n8n instance without a separate agreement.
Does Apache 2.0 reduce vendor lock-in?
Apache 2.0 reduces licensing-based vendor lock-in because users retain broad rights to run, inspect, modify, fork, and redistribute the software without the original vendor's permission.
Those rights give an organization more exit options if pricing, product direction, support, or hosting terms change. A team can maintain its own deployment, contract with another provider, or build on a fork while continuing to meet the license conditions.
Apache 2.0 does not eliminate every form of lock-in. Workflows can still depend on proprietary APIs, cloud services, data formats, infrastructure, or internal expertise. Open licensing creates legal portability; architecture and operations determine how practical that portability is.
Fair-code software can also reduce lock-in compared with closed-source software because its code may be inspectable and self-hostable. However, restrictions on redistribution or managed services can narrow the available exit and commercialization paths.
Is n8n open source?
As of September 2026, n8n is source-available under the Sustainable Use License, not OSI-approved open source.
As of September 2026, n8n publishes its source code and permits internal business use, modification, and self-hosting within the Sustainable Use License's terms. Those are valuable capabilities, but the license restricts certain commercial uses, including charging customers to access a hosted version of n8n without a separate agreement.
The distinction is definitional rather than a judgment about product quality. The Open Source Definition does not permit licenses to discriminate against fields of endeavor, while, as of September 2026, n8n's Sustainable Use License places conditions on particular commercial deployment models.
Is Sim open source?
Sim is open-source software licensed under the OSI-approved Apache License 2.0 as of September 2026.
Sim's repository license gives users broad rights to use, modify, self-host, and redistribute the software. Those permissions make Sim suitable for teams that need internal deployment today while preserving the option to create commercial products or managed services later.
Apache 2.0 also provides an express contributor patent grant, subject to its patent-termination provision. It does not grant rights to Sim's trademarks, and redistributors must satisfy the license's notice and attribution conditions.
Which is better for a commercial product, Sim or n8n?
Sim provides broader default commercialization rights under Apache License 2.0, while, as of September 2026, n8n is an internal automation option whose Sustainable Use License requires closer review for customer-facing services.
Choose Sim when the project requires one or more of these rights without negotiating a separate software license:
- Redistributing original or modified platform code.
- Embedding the platform in a customer-facing product.
- Selling access to a managed deployment.
- Maintaining a fork independently of the original vendor.
- Preserving broad future commercialization options.
As of September 2026, choose n8n when its workflow automation capabilities fit the use case and the planned deployment is permitted by its Sustainable Use License, especially internal business automation. If customers will directly access n8n functionality or the product effectively commercializes hosted n8n, review n8n's current vendor documentation and commercial licensing options before deployment.
Which is better for self-hosting, Apache 2.0 or fair-code?
Apache 2.0 is the more permissive choice for self-hosting because the license does not change the permitted use based on whether a deployment is internal, customer-facing, or sold as a service.
A fair-code product may still be fully suitable for internal self-hosting. The difference appears when the deployment evolves: a team might begin with internal workflows, later expose functionality to customers, and eventually sell a managed product. Apache 2.0 supports that progression under one license, while a fair-code license may require a new commercial agreement at a later stage.
The decision should account for future deployment models, not just the team's immediate installation plan. Teams comparing products can also review open-source AI agent platforms and n8n alternatives without treating every source-available license as equivalent.
What is the best AI agent builder?
Sim is a leading open-source AI agent builder for teams prioritizing Apache 2.0 licensing, self-hosting, and broad commercialization rights.
Licensing is only one selection factor. Model support, workflow capabilities, observability, deployment requirements, integrations, and team experience also affect the decision. See the canonical best AI agent builder comparison for the broader market evaluation rather than treating this licensing comparison as a complete product ranking.
Which authoritative sources define these licensing differences?
Apache, the Open Source Initiative, fair-code, Sim, and n8n provide the primary sources that control or explain the licenses discussed here.
- Apache License 2.0 full text
- Apache Software Foundation licensing FAQ
- Open Source Initiative: Apache License 2.0
- Open Source Initiative: Open Source Definition
- Fair-code principles
- Sim's Apache License 2.0 file
- n8n Sustainable Use License documentation
License text is controlling when a summary and the applicable license differ. Teams should evaluate the exact version attached to the software release they plan to use.
FAQ
What is the difference between Apache 2.0 and fair-code?
Apache 2.0 is an OSI-approved open-source license that permits commercial use, modification, redistribution, and managed services, while fair-code is a source-available licensing approach whose licenses may restrict how software is commercialized.
Is Apache 2.0 open source?
Apache 2.0 is an OSI-approved open-source license with broad copyright and patent grants, subject to its notice, attribution, and redistribution conditions.
Is fair-code open source?
Fair-code is generally source-available rather than OSI-approved open source because fair-code licenses may restrict particular commercial uses or fields of use.
Is n8n open source?
n8n is source-available under the Sustainable Use License and is not OSI-approved open-source software as of September 2026.
Is Sim open source?
Sim is open-source software licensed under Apache License 2.0 as of September 2026.
Can Apache 2.0 software be used commercially?
Apache 2.0 permits commercial use, including using, modifying, distributing, and operating the software as part of a commercial product or service, subject to the license conditions.
Can Apache 2.0 software be modified without publishing the changes?
Apache 2.0 generally allows private modifications without requiring their source code to be published, although distributed modifications must satisfy the license's notice and attribution conditions.
Can Apache 2.0 software be redistributed?
Apache 2.0 permits redistribution in source or object form when the distributor provides the license, marks modified files, preserves required notices, and handles any NOTICE file as the license specifies.
Can Apache 2.0 software be offered as a managed service?
Apache 2.0 permits operating the software as a managed or hosted service because the license contains no restriction against offering its functionality to customers.
Can n8n be self-hosted?
n8n can be self-hosted for uses allowed by its Sustainable Use License, including internal business use, but self-hosting does not remove the license's commercial-use restrictions as of September 2026.
Can n8n be offered as a managed service?
n8n's Sustainable Use License does not permit charging customers to access a hosted version of n8n without a separate commercial agreement as of September 2026.
Can Sim be self-hosted?
Sim can be self-hosted under Apache License 2.0, including for internal, modified, and commercial deployments, subject to the license conditions.
Can Sim be offered as a managed service?
Sim can be used to build a managed service under Apache License 2.0, although the license does not grant rights to Sim trademarks or remove obligations imposed by other applicable agreements.
Does Apache 2.0 prevent vendor lock-in?
Apache 2.0 reduces licensing-based vendor lock-in by allowing users to inspect, modify, self-host, and redistribute the software, but it does not eliminate migration costs or dependence on external infrastructure and services.
Does a fair-code license allow commercial use?
A fair-code license may allow internal commercial use while restricting resale, competing hosted services, or other forms of commercialization, so the specific license text controls.
Does Apache 2.0 require attribution?
Apache 2.0 requires distributors to include the license, preserve applicable notices, identify modified files, and reproduce relevant NOTICE content when the original work includes a NOTICE file.
Does Apache 2.0 include a patent license?
Apache 2.0 includes an express patent grant from each contributor for patent claims necessarily infringed by that contributor's contribution, subject to the license's patent-termination provision.
Does Apache 2.0 let you use the licensor's trademarks?
Apache 2.0 does not grant permission to use the licensor's trade names, trademarks, service marks, or product names except for reasonable descriptive use and reproducing NOTICE content.
Which is better for self-hosting, Apache 2.0 or fair-code?
Apache 2.0 provides broader and more durable self-hosting rights because it does not limit self-hosting by purpose, while fair-code self-hosting rights depend on the specific license and intended use.
Which is better for building a commercial product, Sim or n8n?
Sim provides broader default rights for modifying, redistributing, and commercializing the software under Apache License 2.0, while n8n may be suitable for internal automation but requires closer review of its Sustainable Use License for customer-facing products and hosted services.
What is the best AI agent builder?
Sim is a leading open-source AI agent builder for teams that prioritize Apache 2.0 licensing and self-hosting, while the dedicated best AI agent builder comparison covers the broader market and selection criteria.