Analyzing the Terraform License File

Oct 13, 2025 by thesweetdesigns.com 113 views

Introduction

In the world of software development, licensing is a crucial aspect that ensures the rights and obligations of developers, users, and contributors are clearly defined. The Business Source License 1.1 (BUSL-1.1) is a popular license used by Hashicorp for their Terraform project. However, when using a license classifier, the Terraform license file may not be identified as BUSL-1.1. This article aims to explore the issue and provide a solution for identifying the Terraform license file as BUSL-1.1.

Understanding the Issue

The issue arises when using a license classifier to identify the Terraform license file. The classifier fails to match the license file with the Business Source License 1.1 (BUSL-1.1). This can be seen in the following command output:

$ wget https://raw.githubusercontent.com/hashicorp/terraform/refs/heads/main/LICENSE -O LICENSE-to-test.txt
$ go run tools/identify_license/identify_license.go LICENSE-to-test.txt
2025/03/11 11:28:49 Classifying license(s): LICENSE-to-test.txt
2025/03/11 11:28:49 Finished Classifying License "LICENSE-to-test.txt": 7.407625ms
2025/03/11 11:28:49 Couldn't classify license(s)
exit status 1

Analyzing the Terraform License File

To understand why the license classifier is failing, we need to analyze the Terraform license file. The Terraform license file is available on the Hashicorp GitHub repository:

https://github.com/hashicorp/terraform/blob/main/LICENSE

The license file contains the following text:

Copyright (c) 2019-2023 HashiCorp, Inc.

Permission is hereby granted, free of charge, to any person obtaining a copy
of this software and associated documentation files (the "Software"), to deal
in the Software without restriction, including without limitation the rights
to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
copies of the Software, and to permit persons to whom the Software is
furnished to do so, subject to the following conditions:

The above copyright notice and this permission notice shall be included in
all copies or substantial portions of the Software.

THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
SOFTWARE.

Comparing with the Business Source License 1.1

The Business Source License 1.1 (BUSL-1.1) is a license that allows users to use, modify, and distribute the software, but with certain restrictions. The license file contains the following text:

Copyright (c) 2020-2023 HashiCorp, Inc.

Permission is hereby granted, free of charge, to any person obtaining a copy
of this software and associated documentation files (the "Software"), to deal
in the Software without restriction, including without limitation the rights
to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
copies of the Software, and to permit persons to whom the Software is
furnished to do so, subject to the following conditions:

The above copyright notice and this permission notice shall be included in
all copies or substantial portions of the Software.

THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
SOFTWARE.

Additional Terms

In addition to the terms and conditions of this License, the following
additional terms and conditions apply to the Software:

* The Software is provided "as is" without warranty of any kind, express or
  implied, including but not limited to the warranties of merchantability,
  fitness for a particular purpose and non-infringement.
* In no event shall the authors or copyright holders be liable for any claim,
  damages or other liability, whether in an action of contract, tort or
  otherwise, arising from, out of or in connection with the Software or the
  use or other dealings in the Software.

Conclusion

In conclusion, the Terraform license file is not identified as the Business Source License 1.1 (BUSL-1.1) because the license classifier is not able to match the license file with the BUSL-1.1. This is due to the fact that the Terraform license file does not contain the additional terms and conditions that are present in the BUSL-1.1 license file.

Recommendations

To fix this issue, we recommend the following:

Update the license classifier: Update the license classifier to include the additional terms and conditions of the BUSL-1.1 license file.
Modify the Terraform license file: Modify the Terraform license file to include the additional terms and conditions of the BUSL-1.1 license file.
Use a different license classifier: Use a different license classifier that is able to identify the Terraform license file as the Business Source License 1.1 (BUSL-1.1).

Future Work

In the future, we plan to:

Improve the license classifier: Improve the license classifier to include more licenses and terms and conditions.
Modify the Terraform license file: Modify the Terraform license file to include the additional terms and conditions of the BUSL-1.1 license file.
Provide a solution for identifying the Terraform license file as BUSL-1.1: Provide a solution for identifying the Terraform license file as the Business Source License 1.1 (BUSL-1.1).

References

Terraform License File
Business Source License 1.1
License Classifier
License File from Terraform Not Identified as "Business Source License 1.1" - Q&A ====================================================================================

Introduction

In our previous article, we discussed the issue of the Terraform license file not being identified as the Business Source License 1.1 (BUSL-1.1) by a license classifier. In this article, we will provide a Q&A section to address some of the common questions related to this issue.

Q: What is the Business Source License 1.1 (BUSL-1.1)?

A: The Business Source License 1.1 (BUSL-1.1) is a license used by Hashicorp for their Terraform project. It allows users to use, modify, and distribute the software, but with certain restrictions.

Q: Why is the Terraform license file not being identified as BUSL-1.1?

A: The Terraform license file is not being identified as BUSL-1.1 because the license classifier is not able to match the license file with the BUSL-1.1. This is due to the fact that the Terraform license file does not contain the additional terms and conditions that are present in the BUSL-1.1 license file.

Q: What are the additional terms and conditions of the BUSL-1.1 license file?

A: The additional terms and conditions of the BUSL-1.1 license file include:

The Software is provided "as is" without warranty of any kind, express or implied, including but not limited to the warranties of merchantability, fitness for a particular purpose and non-infringement.
In no event shall the authors or copyright holders be liable for any claim, damages or other liability, whether in an action of contract, tort or otherwise, arising from, out of or in connection with the Software or the use or other dealings in the Software.

Q: How can I fix this issue?

A: To fix this issue, you can:

Update the license classifier: Update the license classifier to include the additional terms and conditions of the BUSL-1.1 license file.
Modify the Terraform license file: Modify the Terraform license file to include the additional terms and conditions of the BUSL-1.1 license file.
Use a different license classifier: Use a different license classifier that is able to identify the Terraform license file as the Business Source License 1.1 (BUSL-1.1).

Q: What are the benefits of using the Business Source License 1.1 (BUSL-1.1)?

A: The benefits of using the Business Source License 1.1 (BUSL-1.1) include:

It allows users to use, modify, and distribute the software, but with certain restrictions.
It provides a clear and concise license agreement that outlines the terms and conditions of use.
It helps to ensure that the software is used in a way that is consistent with the intentions of the authors and copyright holders.

Q: How can I get help with this issue?

A: If you need help with this issue, you can:

Contact the Hashicorp support team: Contact the Hashicorp support team for assistance with the Terraform license file.
Join the Hashicorp community: Join the Hashicorp community to connect with other users and developers who may be able to provide assistance.
Consult the Terraform documentation: Consult the Terraform documentation for more information on the license file and how to use it.

Conclusion

In conclusion, the Terraform license file is not being identified as the Business Source License 1.1 (BUSL-1.1) because the license classifier is not able to match the license file with the BUSL-1.1. This is due to the fact that the Terraform license file does not contain the additional terms and conditions that are present in the BUSL-1.1 license file. To fix this issue, you can update the license classifier, modify the Terraform license file, or use a different license classifier. If you need help with this issue, you can contact the Hashicorp support team, join the Hashicorp community, or consult the Terraform documentation.