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Java 17 Licensing – NFTC vs. OTN and What Changed in 2025

Java 17 Licensing

Java 17, a Long-Term Support (LTS) release, was initially offered under Oracle’s No-Fee Terms and Conditions (NFTC) license from 2021 through 2024. This meant Oracle JDK 17 was effectively free for commercial use during that period.

However, in 2025, the licensing landscape changed drastically – Java 17 is no longer free for business use. Organizations must now make informed decisions about how to license and support Java 17 in the future. Read our Oracle Java Licensing Guide.

Executive Takeaway: What was a “no-fee” Java 17 now requires active choices on licensing, support, and updates.

What Was Java 17 Under NFTC?

Under the NFTC license, Oracle permitted the free use of Java 17 in production (as well as in development and testing) for a limited period. Java 17’s NFTC window began with its release in September 2021 and lasted until late 2024 (about three years).

During this period, companies could deploy Oracle JDK 17 without paying fees and receive free quarterly security updates (Oracle’s Critical Patch Updates (CPUs)). Many enterprises took advantage of this, avoiding the subscription costs associated with older Java versions.

Transition to OTN in 2025

In late 2024, Oracle ended the NFTC terms for Java 17. From that point forward, Java 17 updates were governed by the Oracle Technology Network (OTN) license. Under OTN, Java 17 is no longer free for production use.

Using Oracle JDK 17 in any commercial or internal business capacity now requires a paid Java SE subscription. (Development and testing use remains free.)

What Changed in 2025

With Java 17’s NFTC period now over, the rules for 2025 are significantly different.

Key changes include:

  • Production Use: Then (2021–2024): Oracle JDK 17 was freely available for production use (no license required). Now (2025): Production use is no longer free – it requires an Oracle Java SE subscription.
  • Security Updates: Then, Oracle provided free Java 17 patches and updates (up to JDK 17.0.12). As of now, updates for Java 17 released after 2024 (17.0.13+) are only available to paying customers. No subscription means no new security fixes from Oracle.
  • Compliance Risk: Then: No compliance risk – usage was fully covered under NFTC. Now: High risk – using Oracle Java 17 in production without a subscription violates Oracle’s terms and could trigger an audit with back-dated fees.

Essentially, what was free and supported is now behind a paywall. A setup that was compliant in 2024 will not be compliant in 2025 unless you either pay for Oracle’s support or switch to a different Java solution.

Read how earlier versions work, Java 11 License – What’s Free and What Requires Subscription.

Compliance & Cost Implications

Oracle’s solution for continued Java 17 use is the Java SE Universal Subscription, which uses an employee-based licensing model. Instead of counting installations, Oracle charges based on the total number of employees.

This can result in substantial costs.

For example, the table below shows estimated annual Java licensing costs at various workforce sizes:

Total EmployeesApprox. Annual Java Subscription Cost
5,000~$1.8 million per year
10,000~$3.6 million per year
25,000~$9.0 million per year

This is so expensive because every employee counts, not just the handful of people using Java. Even a small Java footprint can translate into a huge expense when the whole company is factored in.

Another compliance aspect is indirect Java use. If a third-party software package you use bundles Oracle’s Java 17, that counts as your usage unless the vendor’s license explicitly covers it (which is uncommon).

Embedded instances of Oracle Java must be included in your compliance scope, just like any other installation.

Oracle’s enforcement has also ramped up. An audit that finds unlicensed Oracle Java 17 in your environment can result in a hefty retroactive bill. To avoid that scenario, it’s crucial to address Java 17 licensing proactively rather than waiting for an audit.

How to Audit Java 17 Usage in 2025

To navigate this transition, start by auditing your Java 17 usage. Key steps:

  1. Inventory installations: Identify all places where Java 17 is running in your environment. Note which installations are Oracle’s JDK.
  2. Identify production vs. non-production: Mark which Java 17 instances are used in production (live business systems) versus in development/test environments.
  3. Check third-party apps: See if any third-party software you use includes Oracle’s JDK 17. If so, and the vendor hasn’t licensed it for you, treat that as Oracle Java usage on your side.
  4. Calculate license scope: Estimate the number of employees that would need to be covered if you stick with Oracle’s licensing, to gauge potential costs.
  5. Review past usage: Check if you used Oracle Java in past years without a subscription (e.g., Java 8 or 11 after their free update periods) to identify any existing compliance exposure.
  6. Plan actions: For each Java 17 instance, determine whether to subscribe (pay Oracle)migrate it to an alternative Java distribution or a newer version, or retire it if it’s no longer needed. This will shape your future strategy.

Read about later versions, Java 21 License – What’s Free and What Requires Subscription.

Decision Paths for 2025

After auditing, you can choose how to handle Java 17:

Option 1 – Stay on Oracle JDK 17 (Subscription): Continue using Oracle’s JDK 17 and purchase the Java SE subscription. This ensures you get all updates and support from Oracle. It’s technically simple, but it is costly.

Option 2 – Switch to OpenJDK or Another Distribution: Replace Oracle JDK 17 with a free OpenJDK-based distribution from another provider (e.g., Eclipse Temurin/Adoptium, Amazon Corretto, Azul Zulu). These alternatives offer the same Java functionality and regular updates, eliminating the need for Oracle’s fees. This approach avoids licensing costs, although it requires testing and effort to deploy the new JDK across your systems.

Option 3 – Hybrid Approach: Use a combination of both strategies. For example, keep Oracle JDK 17 (with a subscription) on a few absolutely critical systems, but migrate the majority of Java workloads to an OpenJDK distribution. This way, you pay Oracle only where necessary, while shifting most of your Java use to a no-cost or lower-cost platform over time.

Negotiation Angles & Risk Reduction

If you engage Oracle to license Java 17, approach the discussion strategically:

  • Scope the license: Negotiate to exclude groups that don’t use Java or limit the license to certain business units. A narrower scope means fewer employees to count.
  • Seek better pricing: Ask for volume discounts if you have a large headcount. Push for caps on price increases and a true-down clause to reduce costs if your employee count decreases.
  • Use leverage: Make it clear that you are considering alternatives (such as migrating to OpenJDK, etc.). Showing that you have options can encourage Oracle to offer more favorable terms.
  • Clarify terms: Ensure the contract covers access to all necessary Java patches and includes provisions for events like mergers or divestitures to prevent unexpected costs down the line.

Is Java 17 free for production use in 2025?

No. As of 2025, Oracle Java 17 is not free for production use. The no-fee period has ended, so running Oracle JDK 17 in any commercial environment now requires a paid subscription. (Only development and test use remain free under Oracle’s terms.)

When did Java 17’s NFTC period end?

Java 17’s free NFTC period ended in September 2024. The last free Oracle JDK 17 update was 17.0.12; any update released after that point falls under the OTN license and requires a subscription for production use.

Do I need a subscription for Java 17 updates and security patches?

Yes. To receive new Java 17 updates or security patches from Oracle (beyond version 17.0.12) in a production environment, your organization needs an active Java SE subscription.

Without a subscription, you will not have access to Oracle’s Java 17 patches in 2025 and beyond (unless you migrate to a non-Oracle Java provider that supplies updates).

What’s the difference between NFTC and OTN for Java 17?

NFTC (No-Fee Terms and Conditions) was a temporary license that allowed Oracle Java 17 to be used free for all purposes (including production) during its initial release period.

The OTN (Oracle Technology Network) license is the standard license currently in effect, which allows free use only for development/test or personal purposes, and requires a paid subscription for any production use of Java 17.

In short, NFTC made Java 17 “free” for a limited time, whereas OTN is the ongoing license that puts Java 17 behind a paywall for businesses.

How does the employee-based Universal Subscription affect Java 17 costs?

The employee-based subscription ties Java licensing costs to your total workforce size, which often makes it very expensive. Even if only a few applications or teams use Java, you pay as if every employee in the company is using it.

As a result, large enterprises can see Java 17 support costs reach into the millions of dollars per year under this model. This represents a significant shift from the $0 cost during the NFTC period, which has raised budget concerns for many organizations.

Can we keep Java 17 under NFTC if we don’t update?

You can continue running the latest NFTC version of Oracle Java 17 (17.0.12) in production without incurring any costs to Oracle. However, if you don’t update beyond that version, you will not receive any new fixes or security patches.

Over time, an unpatched Java 17 will become increasingly vulnerable as new threats emerge. While avoiding subscription fees by not updating, you also assume a growing security risk.

Does third-party software bundling of Oracle JDK 17 require a license?

Usually, yes. Suppose a third-party application you use comes bundled with Oracle’s JDK 17. In that case, your organization is responsible for licensing that Java usage, unless the vendor has a special agreement with Oracle (which is rare).

In practice, you should treat embedded Oracle Java the same as any other installation when it comes to compliance – it likely needs to be covered by your Java license or replaced with a non-Oracle Java to avoid liability.

Conclusion

Java 17’s licensing has undergone a fundamental shift in 2025: it moved from a no-cost model to a subscription-based model. The end of NFTC means enterprises using Oracle Java 17 must either start paying Oracle or pivot to alternatives. To avoid compliance issues and budget surprises, it’s crucial to audit your Java usage and make a plan – whether that means negotiating a manageable Oracle subscription or migrating to OpenJDK. What was once free now comes at a cost, so addressing this change proactively will ensure you continue to use Java on terms that best fit your organization.

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Author

  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency.

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