When purchasing software you don’t actually buy the software, but a licence to use it under specific restrictions. Below is a list of licence types
Freeware
Software provided at no cost is known as freeware. This does not transfer the ownership, that remains with the programmer/company who created the software. It is simply a licence to use the software for free.
Open source
Open source relates to code provided for free. This is not the executable code, but code you can compile or use within your own software products at no cost. This does not transfer the ownership, that remains with the programmer/company who created the software. It is simply a licence to use the code for free. There are many types of open source licensing agreements.
Shareware
The term shareware is rarely used anymore, but it relates to software (or parts of software) offered for free, with a commercial (paid) upgrade providing greater functionality.
Commercial
A commercial licence is software you pay for, which allows you to use it under specific restrictions as laid out in the End User Licensing Agreement (EULA).