Oracle Java has undergone significant transformations over the years, from its acquisition by Oracle Corporation to the evolving licensing structures that impact organizations worldwide. Understanding these changes is essential for businesses to ensure compliance and effectively manage their Java deployments. In this blog post, we’ll delve into the history of Oracle Java, explore its licensing structures, and dissect the implications of recent changes.  


Oracle’s Acquisition of Sun Microsystems:  

The story of Oracle Java begins with Oracle’s acquisition of Sun Microsystems in 2009. This acquisition marked a pivotal moment in the tech industry, consolidating Oracle’s position as a key player in the software landscape. With Sun Microsystems came Java, a versatile programming language known for its portability and widespread adoption.  

The Era of Free Java:  

Initially, Oracle Java was largely free for general use, with commercial features available for niche applications requiring licensing. However, as Java continued to proliferate across industries, Oracle introduced structured licensing models to govern its usage more effectively. 

Oracle Java Licensing Structures:  

Oracle’s Java licensing structures have evolved over time, aiming to differentiate between free and commercial usage. Organizations must navigate these structures to ensure compliance and avoid potential audits and penalties. Key aspects of the licensing structures include:  

  • Employee-Wide Licensing: A significant shift occurred in 2023, where organizations are required to purchase licenses for their entire employee population if any employee or server utilizes a licensable version of Java. 
  • Version and Security Patch Review: Java licensing is determined by specific versions and applied security patches, necessitating careful monitoring and management. 
  • Oracle’s Audit Strategy: Oracle has implemented strategies to audit organizations to ensure compliance with Java licensing requirements, recognizing the widespread deployment of Java in businesses. 

Recent Licensing Changes:  

Oracle has introduced several significant changes to Java licensing in recent years, impacting organizations’ approaches to Java deployment and compliance. Here is a summary of these changes:  

  • 2019: Subscription Requirement for Updates: 
  • 2021: Introduction of the NFTC Agreement: 
    • Oracle introduced the NFTC – Oracle No-Fee Terms and Conditions agreement, making Java free for commercial usage from Oracle JDK 17 onwards. However, it’s important to note that this free access is temporary. For example, for Java 17 subsequent patches post September 2024 require a subscription, If the Java usage exceeds the OTN rules and guidelines. However, if the Java usage is within your OTN guidelines then you are entitled to your free Java allowance under OTN.
  • 2023: Major Pricing Model Overhaul for Java SE Subscriptions: 
    • Oracle made significant changes to its pricing model for Java SE subscriptions. They introduced the “Oracle Java SE Universal Subscription” model, replacing old licenses like Named User Plus and Processor licenses. Existing agreements such as Java BCL (Oracle Binary Code License Agreement), Java OTN, and Java NFTC remained valid despite these changes. The change affected the license metric, basing pricing on the number of employees with different price tiers for different ranges of employee numbers. 

These changes reflect Oracle’s efforts to streamline Java licensing and ensure compliance across its user base. Organizations must stay aware of these developments to navigate the evolving landscape of Java licensing effectively. 

Understanding NFTC Licensing:  

The No-Fee Terms and Conditions (NFTC) licensing represents a significant departure from traditional Java licensing models. Under NFTC, Oracle provides temporary free access to Java 17 and future versions for a specified period. This allows organizations to utilize Java without immediate licensing costs, promoting adoption and exploration of new Java releases.  

The Time-Limited Nature of NFTC:  

While NFTC offers free access to Java for a specified period, organizations must be mindful of the licensing implications beyond this period. Oracle has outlined the transition plan for NFTC licenses on their website. According to Oracle in this blogpost, NFTC licensing will be used for JDK 17 and later releases. For Long-Term Support (LTS) releases such as JDK 17 and 21, updates under the NFTC license will be provided for one year after the release of the subsequent LTS version. After this free use license period, Oracle intends to transition to the Oracle Technology Network License Agreement (OTN) that requires situationally subscriptions, which is currently used for Java 8 update 211 and later and Java 11 LTS releases. Non-LTS releases, such as JDK 18, will remain available under the NFTC for their entire planned support life, which is typically six months after public release.  

Implications for Licensing Compliance:  

With the complexity of Oracle’s NFTC agreement lifecycle, organizations must be prepared to evaluate their licensing needs and acquire the necessary licenses to continue using Java in a compliant manner. Proactive license management and compliance monitoring are essential to mitigate the risk of non-compliance penalties and ensure the uninterrupted operation of Java applications.  


The transition from one Java version to the other for LTS releases underscores the importance of staying informed about licensing changes and proactively managing licensing compliance. By understanding the cycle of licensing transitions and planning accordingly, organizations can navigate the complexities of Java licensing with confidence and ensure the continued compliance of their Java deployments. 

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