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Nick explains that not all open source software is the same, as the rights you have are defined by the license attached to the software. Some licenses are more permissive, while others are more restrictive. He discusses the most commonly used licenses for free and open source software, exploring the different rights they grant. The video is sponsored by Linode, who offers $100 to set up your own Linux or gaming server. Getting started is easy with their app marketplace, allowing for quick deployment with just one click.