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By January 2021, there were over 200 million repositories on Github with developers benefiting from open source to avoid reinventing the wheel. However, with over 200 open source licenses available, developers face a challenge in choosing compatible software while ensuring compliance. The video discusses popular open-source licenses such as MIT, Apache, MPL, and GPL. The most used permissive licenses include MIT, ISC, 2-Clause, 3-Clause BSD, and Apache 2, allowing freedom to use, modify, and distribute, as well as permitting proprietary derivative works.