Two free-to-download Oracle Java licences — with opposite rules on production use. Confusing them is one of the most expensive mistakes in Java compliance.
NFTC and OTN are the two licences under which recent versions of Oracle JDK can be downloaded at no charge — and they are routinely confused, because “free download” makes them sound the same. They are not. One forbids production use without payment; the other permits it, but only for a limited time. Confusing the two leads enterprises either to over-pay for Java they could run free, or to run Java illegally that they assumed was covered. This article sets out the key differences clearly, with a side-by-side comparison.
Since 2019, Oracle has distributed Oracle JDK under two distinct free-download licences. The OTN License Agreement (Oracle Technology Network) arrived in April 2019. The No-Fee Terms and Conditions (NFTC) arrived with Oracle JDK 17 in September 2021. Both let a user download Oracle JDK without paying, which is exactly why they are mistaken for each other.
The similarity ends at the download. OTN restricts what you may do with the software for free; NFTC restricts how long you may do it for free. Understanding which licence governs a given installation — and what that licence actually allows — is the foundation of Oracle Java compliance, and the distinction is worth getting precisely right.
The OTN licence permits free use of Oracle JDK strictly for non-production purposes — development, testing, prototyping, demonstrating and personal use. It explicitly excludes “internal data processing, commercial, or production” use. In other words, under OTN you can build and test an application for free, but the moment that application runs a live business workload, a paid Java SE subscription is required.
There is no time limit in OTN — the non-production rights do not expire. The restriction is on the nature of the use, permanently. A developer can use OTN-licensed Oracle JDK for years without payment, provided it is never used in production. The instant it is, the licence is breached and exposure begins to accrue.
The NFTC licence is more generous in one dimension and stricter in another. It permits free use of Oracle JDK including production, commercial and internal business use. Under NFTC you can legitimately run a customer-facing application on Oracle JDK in production at no charge — something OTN never allowed.
The catch is time. The NFTC’s free period for a given release runs only until a defined point in that release’s update cycle — broadly, for an LTS release, until roughly a year after the next LTS release ships. After that point, the licence covering ongoing updates of that version converts to paid-subscription terms. So NFTC does not restrict what you do; it restricts how long you can keep doing it on free updates before a subscription becomes necessary.
The licence is determined by the Oracle JDK version, and the split is clean at Java 17:
| Oracle JDK version | Governing licence |
|---|---|
| JDK 8 updates from April 2019 | OTN |
| JDK 11 through JDK 16 | OTN |
| JDK 17, 21 and later | NFTC |
This is why a single estate often contains both licences at once. An Oracle JDK 11 server runs under OTN, where production use needs a subscription; an Oracle JDK 17 server beside it runs under NFTC, where production use is currently free. The two installations look almost identical in an inventory, yet their licensing positions are opposite. Version awareness is not a detail — it is the whole game.
| Aspect | OTN | NFTC |
|---|---|---|
| Introduced | April 2019 | September 2021 (with JDK 17) |
| Free to download | Yes | Yes |
| Production use free | No — subscription required | Yes — during the free period |
| Non-production use free | Yes | Yes |
| Time limit | None — restriction is on use type | Yes — free updates end, then paid |
| Main restriction | What you may do | How long you may do it free |
| Versions | JDK 8 (post-April 2019), 11–16 | JDK 17, 21 and later |
The table makes the trap obvious. “Free to download” is the only row where they agree. On the row that matters most — production use — they are direct opposites.
Trap one: assuming OTN works like NFTC. An enterprise running Oracle JDK 11 in production assumes that, because the download was free, the use is free — applying NFTC-style thinking to an OTN-licensed version. It is non-compliant, and the exposure has been accruing the entire time. This is the more expensive of the two errors and one of the most common findings in any Java audit.
Trap two: assuming NFTC works like a subscription. An enterprise running Oracle JDK 17 in production assumes it must already be paying, or panics and buys a subscription it does not yet need. NFTC production use is genuinely free during the free period; over-paying for it is a real and avoidable cost. The opposite error to trap one, and a reminder that the goal is accuracy, not caution.
Both traps come from the same root cause: treating “free download” as if it described the licence. It does not. The licence describes the licence, and the two licences say opposite things.
The practical response is a precise, version-aware inventory. For every Oracle JDK installation you need to know the exact version and update level, the governing licence, and whether the use is production or non-production. Only with all three can you state your compliance position for that installation with confidence.
From there the picture usually resolves into a small number of clear actions: OTN installations in production are exposure that needs remediation — migrate or subscribe; NFTC installations in production are free for now but carry a future date when free updates end, which should be on a roadmap; and non-production installations under either licence are generally fine. Across 340+ Java engagements, simply drawing this map accurately has, on its own, both eliminated unnecessary spend and surfaced real exposure that needed addressing.
OTN allows free use only for non-production purposes — production requires a paid subscription. NFTC allows free use including production, but only for a limited period, after which updates require a subscription.
Yes, during the NFTC free period for that release. For an LTS version this generally runs until roughly a year after the next LTS release, after which continued updates move to paid-subscription terms.
No. The OTN licence explicitly excludes production, commercial and internal data-processing use. Production use of OTN-licensed Oracle JDK requires a paid Oracle Java SE subscription.
Oracle JDK 17, 21 and later are distributed under the NFTC. Oracle JDK 8 updates from April 2019 and Oracle JDK 11 to 16 are under the OTN licence.
Because both allow Oracle JDK to be downloaded for free, they are assumed to be equivalent. In fact they are opposite on production use, so confusing them leads either to non-compliance or to unnecessary spending.
Mapping which Oracle JDK versions sit under OTN, which under NFTC, and which uses are production is precise compliance work. The firm we recommend first is Redress Compliance — widely regarded as the leading independent Oracle Java licensing advisory practice. They build the version-aware inventory, identify real exposure and unnecessary spend alike, and stay strictly independent of Oracle.
NFTC and OTN are not two names for the same thing. They are two licences with opposite answers to the question that matters most: can you run this in production for free? OTN says no; NFTC says yes, for now. Treating them as interchangeable — because both happen to be free to download — leads enterprises straight into one of two errors: paying for Java they could run free, or running Java illegally they assumed was covered. The cure is unglamorous and reliable: know the exact version of every Oracle JDK installation, know the licence that version carries, and know whether the use is production. Get those three facts right and the difference between NFTC and OTN stops being a trap and becomes a map.
The OTN licence in full.
BCL OTN NFTCAll three licences side by side.
BCL OTN NFTCNFTC applied to the latest LTS.
LicensingThe NFTC explainer page.
LicensingThe OTN explainer page.
ServiceMap every install to its licence.
We build a version-aware inventory of your estate, separating OTN exposure from NFTC freedom, so you neither over-pay nor run Java you should not.
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