Shareware, Nagware, Freeware, Open Source - How to differentiate between these computer software industry related terms.

Shareware
Software that can be installed and distributed freely. Some shareware is free but requires fees to be paid to the author before all features are available. Other shareware is full-featured, but “nags” you to pay the fee with extra screens that must be bypassed. Most shareware requires you to pay for it within 30 days.

Nagware
This is shareware that has screens that pop up and require you to press a button or wait an amount of time. These nag screens go away after you pay for the software and enter a registration code.

Freeware
Software that is free for use and does not require a fee to be paid to access its full functionality.

Open Source
Software that can be freely distributed, and must be distributed along with its source code. Thus the source can be changed easily, and the program can be altered to fix bugs or add features. Depending on the Open Source license, you may be unable to redistribute altered code or charge money for the distribution of the software. Some popular examples of Open Source software are Linux and Mozilla.

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