To understand the differences and the issues associated with Open Source and Free Software, one must first understand what differentiates the two. The official definition of “open source software” was indirectly derived from the criteria of “free software”. Which most people think of as say a free beer or to mean free copies of software, which would be wrong. Free software and the free software movement really pertain to the freedom to run it, to study it and change, and to redistribute copies with or without changes.
The freedom of software movement began and has campaigned for computer user’s freedom since 1983. In 1984 they launched the development of the GNU free operating system to avoid the non-free operating systems that were denying their freedom. During the 1980’s the GNU developed most of the essential components of the system and designed the GNU General Public License (GNUGPL) to release them under. However, not all of the user/developers of free software agreed with the goals of the free software movement and 1998 splintered off and began the “open source” campaign. The term open source was originally used to avoid any confusion or misunderstanding associated with the term “free software,” it later became associated with philosophical views which conflicted with those of free software.
Nearly all open source software is free software. The terms describe almost the same category of software. However, their views are based on fundamentally different values. Simply put, open source is a development methodology, while free software is a social movement. Today, tens of millions of people worldwide use free software. Public schools in some of the regions of India and Spain teach students to use the GNU/Linux operating system. However, most of the these users have never heard of the ethical reasons why GNU developed the operating system and built the free software community, because today the system and community are more often spoke of as “open source”, attributing them to a different philosophy of freedoms which are hardly ever mentioned if at all.
So in the end does it matter whether it’s called free software or open source? In my opinion, no, because the terms are used interchangeably, the term “open source” is used by some people to mean the same as “free software” and vice versa.