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Free software or software libre is software that can be used, studied, and modified without restriction, and which can be copied and redistributed in modified or unmodified form either without restriction, or with minimal restrictions only to ensure that further recipients can also do these things and that manufacturers of consumer-facing hardware allow user modifications to their hardware. Free software is available gratis (free of charge) in most cases.
In practice, for software to be distributed as free software, the human-readable form of the program (the source code) must be made available to the recipient along with a notice granting the above permissions. Such a notice either is a "free software license", or a notice that the source code is released into the public domain.
The free software movement was conceived in 1983 by Richard Stallman to satisfy the need for and to give the benefit of "software freedom" to computer users.[1] The Free Software Foundation was founded in 1985 to provide the organizational structure which Stallman correctly foresaw would be necessary to advance his Free Software ideas.
From 1998 onward, alternative terms for free software came into use. The most common are "software libre", "free and open source software" ("FOSS") and "free, libre and open source software" ("FLOSS"). The "Software Freedom Law Center" was founded in 2005 to protect and advance FLOSS.The antonym of free software is "proprietary software" or "non-free software".
Free software, which may or may not be distributed free of charge, is distinct from "freeware" which, by definition, does not require payment for use. The authors or copyright holders of freeware typically retain all other rights to the software; users of freeware, in general, cannot study, modify, or redistribute it
Since free software may be freely redistributed it is generally available at little or no cost. Free software business models are usually based on adding value such as applications, support, training, customization, integration, or certification. At the same time, some business models which work with proprietary software are not compatible with free software, such as those that depend on a user paying for a license in order to lawfully use a software product.

History
In the 1950s, 1960s, and 1970s, it was normal for computer users to have the freedoms that are provided by free software. Software was commonly shared by individuals who used computers and by hardware manufacturers who were glad that people were making software that made their hardware useful. Organizations of users and suppliers were formed to facilitate the exchange of software, see, for example, SHARE. By the late 1960s change was inevitable: software costs were dramatically increasing, a growing software industry was competing with the hardware manufacturer's bundled software products (free in that the cost was included in the hardware cost), leased machines required software support while providing no revenue for software, and some customers able to better meet their own needs did not want the costs of "free" software bundled with hardware product costs. In United States vs. IBM, filed January 17, 1969, the government charged that bundled software was anticompetitive. While some software might always be free, there would be a growing amount of software that was for sale only. In the 1970s and early 1980s, the software industry began using technical measures (such as only distributing binary copies of computer programs) to prevent computer users from being able to study and modify software. In 1980 copyright law was extended to computer programs.

Richard Stallman, the founder of the Free Software Movement.
In 1983, Richard Stallman, longtime member of the hacker community at the MIT Artificial Intelligence Laboratory, announced the GNU project, saying that he had become frustrated with the effects of the change in culture of the computer industry and its users. Software development for the GNU operating system began in January 1984, and the Free Software Foundation (FSF) was founded in October 1985. He developed a free software definition and the concept of "copyleft", designed to ensure software freedom for all.
The economic viability of free software has been recognised by large corporations such as IBM, Red Hat, and Sun Microsystems.[citation needed] Many companies whose core business is not in the IT sector choose free software for their Internet information and sales sites, due to the lower initial capital investment and ability to freely customize the application packages. Also, some non-software industries are beginning to use techniques similar to those used in free software development for their research and development process; scientists, for example, are looking towards more open development processes, and hardware such as microchips are beginning to be developed with specifications released under copyleft licenses (see the OpenCores project, for instance). Creative Commons and the free culture movement have also been largely influenced by the free software movement.

Free software licenses
All free software licenses must grant people all the freedoms discussed above. However, unless the applications' licenses are compatible, combining programs by mixing source code or directly linking binaries is problematic, because of license technicalities. Programs indirectly connected together may avoid this problem.
The majority of free software uses a small set of licenses. The most popular of these licenses are:
the GNU General Public License
the GNU Lesser General Public License
the BSD License
the Mozilla Public License
the MIT License
the Apache License
The Free Software Foundation and the Open Source Initiative both publish lists of licenses that they find to comply with their own definitions of free software and open-source software respectively.
List of FSF approved software licenses
List of OSI approved software licenses
The FSF list is not prescriptive: free licensees can exist which the FSF has not heard about, or considered important enough to write about. So it's possible for a license to be free and not in the FSF list. However, the OSI list is prescriptive: they only list licenses that have been submitted, considered and approved. This formal process of approval is what defines a license as Open Source. Thus, it's not possible for a license to be Open Source and not on the OSI approved list.
Apart from these two organizations, the Debian project is seen by some to provide useful advice on whether particular licenses comply with their Debian Free Software Guidelines. Debian doesn't publish a list of approved licenses, so its judgments have to be tracked by checking what software they have allowed into their software archives. That is summarized at the Debian web site.It is rare that a license is announced as being in-compliance by either FSF or OSI guidelines and not vice versa (the Netscape Public License used for early versions of Mozilla being an exception, as well as the NASA Open Source Agreement