Because open source projects are open to the public, they have different licensing structures in place. License evolution for both Open Source and Free Software has an interesting history. If you are interested in this history, you can find basic information here:

In general, the Yocto Project is broadly licensed under the Massachusetts Institute of Technology (MIT) License. MIT licensing permits the reuse of software within proprietary software as long as the license is distributed with that software. MIT is also compatible with the GNU General Public License (GPL). Patches to the Yocto Project follow the upstream licensing scheme. You can find information on the MIT license here. You can find information on the GNU GPL here.

When you build an image using the Yocto Project, the build process uses a known list of licenses to ensure compliance. You can find this list in the Source Directory at meta/files/common-licenses. Once the build completes, the list of all licenses found and used during that build are kept in the Build Directory at tmp/deploy/licenses.

If a module requires a license that is not in the base list, the build process generates a warning during the build. These tools make it easier for a developer to be certain of the licenses with which their shipped products must comply. However, even with these tools it is still up to the developer to resolve potential licensing issues.

The base list of licenses used by the build process is a combination of the Software Package Data Exchange (SPDX) list and the Open Source Initiative (OSI) projects. SPDX Group is a working group of the Linux Foundation that maintains a specification for a standard format for communicating the components, licenses, and copyrights associated with a software package. OSI is a corporation dedicated to the Open Source Definition and the effort for reviewing and approving licenses that conform to the Open Source Definition (OSD).

You can find a list of the combined SPDX and OSI licenses that the Yocto Project uses in the meta/files/common-licenses directory in your Source Directory.

For information that can help you maintain compliance with various open source licensing during the lifecycle of a product created using the Yocto Project, see the "Maintaining Open Source License Compliance During Your Product's Lifecycle" section in the Yocto Project Development Tasks Manual.