NFTC License – Understanding the No-Fee Terms and Conditions
Oracle’s introduction of the Java 17 NFTC license created surprise and excitement.
After years of pushing paid Java licenses, Oracle suddenly appeared to offer “free Java 17” under new No-Fee Terms and Conditions (NFTC).
Many enterprises adopted the Java 17 no-fee license from Oracle; however, misunderstandings soon arose regarding the actual Oracle NFTC terms and conditions, as well as the NFTC Java licensing limits. Read our Oracle Java Licensing Guide.
Bold takeaway: The NFTC license was never a permanent free Java solution — it was a time-limited incentive with pitfalls.
Understanding NFTC’s scope is critical for organizations to avoid future Oracle audit exposure and compliance risk.
1. What Is the Java 17 NFTC License?
NFTC stands for “No-Fee Terms and Conditions.” It is a special Oracle licensing model that was introduced exclusively for Java Standard Edition 17, a Long-Term Support (LTS) release.
The NFTC license permitted companies to utilize Oracle Java 17 in production and other commercial environments without incurring any license fees; however, this generosity came with strict conditions and a ticking clock.
Importantly, the Java 17 NFTC license applied only to that specific version (Java SE 17) and for a limited duration. Oracle made it clear that this was not a forever-free arrangement.
Enterprises were excited by the prospect of a no-fee license for Java 17, viewing it as a welcome relief after previous costly licenses.
However, the NFTC license duration for Java 17 was tied to its release cycle – meaning the “free” period would end once Oracle released the next LTS version of Java.
Read about Oracle Employee-Based Licensing – Subscription Model Explained.
2. Scope and Expiration of NFTC Licensing
The scope of the NFTC licensing was deliberately narrow. Under Oracle’s NFTC terms and conditions, Java 17 could be freely used for commercial purposes only until the release of the next Java LTS version (Java 21).
This means all updates and patches for Java 17 released during that window were free to use. The moment Java 21 was released, the no-fee window for Java 17 effectively began closing.
After Java 21’s arrival, Oracle stopped providing free updates for Java 17. Any further patches required can be purchased with an Oracle Java SE Subscription or by sticking with the last free build. This Java NFTC update expiration caught some organizations off guard.
Understanding this expiration is essential to prevent a legacy Java 17 compliance risk.
If a company continues to use updated Java 17 builds beyond the NFTC license period without upgrading to a paid plan or a newer free version, they will be running unlicensed software. This scenario sets the stage for compliance problems and potential audit findings.
For further Insights, Java 21 License – What’s Free and What Requires Subscription.
3. Comparing NFTC to Other Licensing Models
It is beneficial to compare the Java 17 NFTC license model with other Java licensing options to understand its distinct features and limitations.
Below is a comparison of NFTC versus traditional Oracle Java subscriptions, open-source Java options, and older Oracle licensing models:
| Licensing Model | Terms | Free? | Duration | Risk Level |
|---|---|---|---|---|
| NFTC (Java 17) | Free commercial use until next LTS release | Yes (temporary) | Limited (Java 17 LTS window) | Medium–High |
| Oracle Java Subscription | Per-user or per-processor subscription for support and updates | No | Ongoing (continuous as long as you pay) | Medium (cost risk) |
| OpenJDK / Vendor JDKs | Open-source or third-party Java distributions with optional paid support | Yes | Continuous (no set end date) | Low (minimal compliance risk) |
| OTN License (Java 8 post-2019) | Oracle Tech Network (OTN) license after 2019 – free for personal/dev use; paid license required for commercial use | No | Ongoing (with strict usage limits) | High (audit exposure) |
NFTC vs. Java Subscription Pricing: The NFTC license provided short-term relief by waiving fees for Java 17 during its LTS period.
However, once the free window closed, organizations had to start paying for an Oracle Java subscription to continue receiving updates and support – an unexpected expense for those unprepared. In contrast, using a Java SE subscription from the start avoids surprises, but it also means paying all along.
NFTC vs. OpenJDK: Unlike NFTC, which was time-limited, OpenJDK and other vendor Java distributions carry no licensing fees and no expiration.
The trade-off is that you must manage support and updates yourself or through a third-party support provider, but from a compliance perspective, these options carry minimal risk. Many enterprises view these free JDKs as a safer choice to avoid Oracle’s licensing traps.
4. Compliance Risks of Misusing NFTC
A major pitfall was treating NFTC as a permanent “free Java” entitlement. Many organizations mistakenly believed that once they adopted Java 17 under NFTC, they would no longer have to pay Oracle for Java.
This misconception led some to continue using Oracle Java 17 and applying updates well beyond the NFTC free period without a subscription. This is precisely the kind of misuse that creates serious compliance risk with the NFTC license.
Using Java 17 in production beyond the NFTC no-fee period, especially after applying updates released after the free terms expired, is effectively unlicensed usage.
This exposes your enterprise to Oracle audits and potential back-charging of fees, since Oracle can detect unauthorized Java use beyond the allowed timeframe. The result may be a surprise audit with significant financial penalties.
For example, one large software company upgraded to Java 17 under NFTC and kept using it even after the free period expired. They continued applying Oracle’s Java 17 updates for a full year without any subscription.
In a subsequent audit, Oracle discovered this and issued a compliance violation, demanding approximately $5 million in retroactive licensing fees. This fictional scenario illustrates how misusing the NFTC license can result in substantial unplanned costs and significant compliance issues.
5. Why Oracle Introduced NFTC
Oracle’s move to introduce the NFTC license for Java 17 was not purely out of generosity. It was a strategic response to backlash and market pressure.
In the years prior, Oracle had made Java licensing more restrictive – notably starting in 2019, Oracle required a paid subscription for commercial use of Java 8 and later versions (like Java 11) under the Oracle Technology Network (OTN) license.
This abrupt shift from Java being “free” to requiring payment angered many enterprise customers and drove some to seek alternatives, such as OpenJDK.
By offering Java 17 under NFTC, Oracle hoped to restore goodwill and keep customers on Oracle Java. The NFTC license was a marketing tactic disguised as generosity.
It reintroduced free Oracle Java into enterprises with an asterisk – the no-fee use was temporary. Oracle expected that once organizations depended on Java 17, they would eventually pay for support or subscriptions after the free period ended.
6. Strategic Post-NFTC Paths for Enterprises
Now that the Java 17 NFTC period has ended, enterprises need a clear strategy to stay compliant and control costs. CIOs, CFOs, and IT leaders should take proactive steps to address Oracle Java usage in their organizations:
- Audit Your Java 17 Deployments: Perform a thorough audit of all systems and applications to identify where Oracle Java 17 is installed. Identify which instances ran Java 17 under NFTC and whether they received updates beyond the free period. This inventory will reveal which ones are now unlicensed.
- Assess NFTC vs. Subscription Costs: Evaluate the financial impact of moving those Java 17 installations to paid Oracle Java subscriptions versus switching to alternatives. Oracle’s subscription pricing can be significant, so compare it with the costs (and effort) of switching to free alternatives. Understanding the NFTC vs Java subscription pricing trade-off will inform your next steps.
- Consider Migration to OpenJDK or Other JDKs: If avoiding Oracle fees is a priority, plan a migration to OpenJDK or another Java distribution for your Java 17 workloads. Many organizations have already switched to these free JDKs, eliminating Oracle licensing costs. Ensure you test your applications on the new JDK and address any compatibility issues that may arise. Migrating off Oracle Java can reduce compliance risk and free you from Oracle’s update cycles.
- Establish Java Governance Policies: Implement robust governance for future Java usage. Track Java version lifecycles and document the terms under which each version is used (e.g., NFTC, OTN, OpenJDK), and ensure there is a plan in place for when any “no-fee” period expires. Enforce policies that require reviewing licensing implications whenever a new Java release is adopted. Proactive governance will help you avoid unintentional unlicensed usage and surprise audit exposure in the future.
By taking these steps, enterprises can navigate the end of NFTC and keep Java platforms up to date – either by staying properly licensed or by switching to free alternatives – all while avoiding exposure to Oracle Java NFTC audits.
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