Can You Fork ERPNext or Odoo and Sell It? What the Licence Actually Requires
Forking an open-source ERP is legal. What you owe downstream depends on the licence and how you distribute, not on whether you host it.
The short answer
Yes. Under GPLv3 you may fork, modify and commercially use an open source ERP with no obligation, because copyleft obligations attach only at distribution — the moment you hand the software to someone else. Hosting it yourself while clients log in through a browser is not distribution. AGPL is the exception: it triggers on network use.
Key points
- GPLv3 restricts distribution, not use. Private modification and commercial use trigger nothing.
- Hosting is not distribution. If the code never leaves your servers, GPLv3 copyleft does not trigger.
- AGPL closes exactly that gap: network interaction alone triggers the obligation.
- ERPNext is GPLv3, not AGPL. Odoo Community is LGPLv3; Odoo Enterprise is proprietary.
- A code licence grants no trademark rights. If you fork and rebrand, rebrand completely.
Every few weeks someone asks a version of the same question. They have found ERPNext or Odoo, they can see it does eighty percent of what they need, and they want to know whether they are allowed to build a business on it. What they have usually read is a forum thread where three people disagreed.
The answer is clearer than the threads suggest.
What actually triggers a copyleft obligation?
Copyleft licences do not restrict what you do with software. They restrict what happens when you hand it to someone else.
Under GPLv3 you may use the software privately, modify it, and use it commercially. None of that triggers an obligation. Obligations attach at distribution — the moment the software leaves your hands and lands in someone else's. At that point you must:
- track changes and dates in the source files
- include the licence and copyright notice with every copy
- indicate what you modified
- release the modified codebase under GPLv3
So the question is never "can I use this commercially." It is "am I distributing."
Is hosting the same as distribution?
No. Under GPLv3, hosting software your clients access over a network is not distribution, because the code never leaves your servers. The copyleft obligations do not trigger, even when a paying customer uses heavily modified code every day.
This is why the delivery model matters more than the licence. At SolvTreeAI every ERP deployment runs on our own infrastructure and the client receives an admin login, not a codebase. Licence exposure is one reason that decision was made deliberately rather than by default.
The trap is AGPL. The Affero GPL exists specifically to close this gap. Under AGPL, letting users interact with the software over a network triggers the obligation even though no code changed hands. Same copyleft, different trigger — and the two licences look nearly identical until the moment they don't.
ERPNext is GPLv3, not AGPL. Check this for whatever you are evaluating. It is a thirty-second check that decides your business model.
How do the ERPNext and Odoo licences compare?
| ERPNext | Odoo Community | Odoo Enterprise | |
|---|---|---|---|
| Licence | GPLv3 | LGPLv3 | Proprietary |
| Published by | Frappe Technologies | Odoo SA | Odoo SA |
| Licence fee | None | None | Subscription, per user |
| Feature gating | None — every module in the free version | Premium features held back for Enterprise | n/a |
| Your new modules | Derivative works fall under GPLv3 | May carry any licence, including closed source | Subscription required |
| Trigger for obligations | Distribution | Distribution | Contract terms |
The practical difference sits in one row. LGPLv3 lets a module that merely depends on Odoo Community libraries carry a closed-source licence; GPLv3 does not offer the same latitude. If selling proprietary modules is the business model, that row decides your base.
One thing the table cannot show: the ERPNext name and logo are separately trademarked by Frappe Technologies. Trademark and code licence are different instruments, and a GPL licence on the code gives you no rights over the brand. Frappe permits using the name to promote a project, with one stated exception — not as part of a domain name. If you fork and rebrand, rebrand completely.
Which scenarios trigger obligations?
| Scenario | Distribution? | What you owe |
|---|---|---|
| You host a modified ERPNext; clients log in through a browser | No | Nothing. The standard consultancy model. |
| You install a modified ERPNext on the client's server and hand it over | Yes | Full GPLv3 obligations, including releasing your modifications under GPLv3 |
| You build a separate module depending on Odoo Community and sell it | Yes, but LGPLv3 | Your module carries your licence |
| You modify Odoo Enterprise code | Contract, not copyleft | A valid subscription. Redistribution is not permitted regardless. |
What this means practically
If you deliver hosted, copyleft is close to a non-issue and you can fork aggressively. If your clients demand code ownership or on-premise installation, licence choice becomes a hard commercial constraint — and you need to decide that before you pick a base rather than after.
The failure we see most often: a firm builds for a year on a copyleft base, a client asks for the source at handover, and only then does anyone read the licence.
One caveat. I am an operator, not a lawyer. The distribution-versus-hosting reading above is well established and widely relied upon, but if you are building a company on it, spend an hour with counsel who has read the licence text. It is a cheap hour.
On what to build on top of a fork once the licence question is settled, see AI-native ERP vs bolting AI onto old software.
Frequently asked questions
- Can I use ERPNext commercially without paying a licence fee?
- Yes. ERPNext is licensed under GPLv3 with no licence fee and no feature gating — every module ships in the free version. Your costs are hosting, implementation and optional support. Commercial use on its own triggers no copyleft obligation.
- Do I have to publish my modifications to ERPNext?
- Only if you distribute the modified software. If you host it and clients access it through a browser, you have not distributed anything and you do not need to release your source. If you install the modified code on a client's own server and hand it over, that is distribution and full GPLv3 obligations apply, including releasing your modifications under GPLv3.
- What is the difference between GPL and AGPL for a SaaS business?
- It is the difference between having a business model and not having one. GPLv3 obligations trigger at distribution, so SaaS hosting escapes them. AGPL was written specifically to close that gap: allowing users to interact with the software over a network triggers the same obligations even though no code changed hands. Check which one applies before you build.
- Can I rename ERPNext and sell it as my own product?
- You can fork and rebrand the code, but the ERPNext name and logo are trademarks of Frappe Technologies and are licensed separately from the code. A GPL licence on the code gives you no rights over the brand. Frappe permits using the name to promote a project but not as part of a domain name. If you rebrand, rebrand completely.
- Is Odoo Community really free for commercial use?
- Yes. Odoo Community is licensed under LGPLv3, which is more permissive than GPLv3: a new module that merely depends on Community libraries can carry any licence you choose, including a closed-source one. Odoo Enterprise is a separate proprietary product, and running, modifying or redistributing Enterprise code requires a valid subscription.