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Nick explains that not all open source software licenses are the same and the rights you have over the code are defined by the license attached to it. Some licenses are more permissive while others are more restrictive. He discusses the most commonly used licenses for free and open source software and the rights they grant you. The video is sponsored by Linode, which offers $100 to deploy your own Linux or gaming server with their app marketplace, making it easy to get started with just one click.