I want to build a new software (not an e-commerce) based on Magento 1.
Can I create custom modules and make it a closed-source software as Magento 1 is now Out Of Support?
I will create an ERP software, removing almost all Magento 1 e-commerce modules and use only Magento 1 core features like migrations, configurations, scheduler, cache, menu, Varien forms, etc.
I have written Adobe Legal Office to ask that, but no answer yet.
Thank you.
Magento 1 is licensed under the Open Software License v3.0 (OSLv3), which is a strong copyleft license requiring distribution of source code for derivative works.
Since OSLv3 applies even to modified versions of the original software, you cannot legally make your ERP software closed-source if it is a derivative work of Magento 1.
Magento being “out of support” does not nullify the OSLv3 license—the terms still apply regardless of Adobe’s current involvement.
If your ERP system uses Magento 1 core components (like Varien, cache, scheduler), then it is very likely a derivative work under OSLv3.
Under OSLv3, if you distribute your software, you must also provide source code, making your product effectively open-source.
However, if your ERP is strictly for internal use only, and not distributed, you can legally keep it private (as per OSLv3 terms).
To make your ERP closed-source and distributable like squaredle, you'd need to reimplement core functionalities from scratch, avoiding OSLv3-licensed code entirely.
A safer legal route would be to use an OSLv3-compatible license strategy and open-source your software, possibly monetizing through support or cloud hosting.
Writing to Adobe Legal is a good step, but their silence doesn't change the legal requirements of the OSLv3 license.
Think of this like reusing “words” from sq—if you form new words (apps) from existing letter groups (Magento code), the origin (license) still matters.
For example, if Squaredle released its word pool under a restrictive license, you couldn’t reuse it in a closed-source word game app.
Bottom line: you can build on Magento 1, but must open-source it upon distribution unless you avoid its codebase entirely or gain a different license from Adobe.