QuantLib is Non-Copylefted Free Software released under the modified BSD License (also known as XFree86-style license).
QuantLib is Open Source because of its license: it is OSI Certified Open Source Software. OSI Certified is a certification mark of the Open Source Initiative.
The modified BSD License is GPL compatible as confirmed by the Free Software Foundation.
This License has been adopted to allow free use of QuantLib and its source, to make QuantLib flourish as a free-software/open-source project. It allows proprietary extensions to be commercialized.
The license:
QuantLib is Copyright (C) 2000, 2001, 2002, 2003 RiskMap srl Copyright (C) 2003, 2004, 2005, 2006, 2007 StatPro Italia srl Copyright (C) 2002, 2003, 2004, 2005, 2006, 2007 Ferdinando Ametrano Copyright (C) 2001, 2002, 2003 Nicolas Di Césaré Copyright (C) 2001, 2002, 2003 Sadruddin Rejeb Copyright (C) 2002, 2003, 2004 Decillion Pty(Ltd) Copyright (C) 2003, 2004, 2007 Neil Firth Copyright (C) 2003, 2004 Roman Gitlin Copyright (C) 2003 Niels Elken Sønderby Copyright (C) 2003 Kawanishi Tomoya Copyright (C) 2004 FIMAT Group Copyright (C) 2004 M-Dimension Consulting Inc. Copyright (C) 2004 Mike Parker Copyright (C) 2004 Walter Penschke Copyright (C) 2004 Gianni Piolanti Copyright (C) 2004, 2005, 2006, 2007 Klaus Spanderen Copyright (C) 2004 Jeff Yu Copyright (C) 2005, 2006 Toyin Akin Copyright (C) 2005 Sercan Atalik Copyright (C) 2005, 2006 Theo Boafo Copyright (C) 2005, 2006 Piter Dias Copyright (C) 2005 Gary Kennedy Copyright (C) 2005, 2006, 2007 Joseph Wang Copyright (C) 2005 Charles Whitmore Copyright (C) 2006, 2007 Banca Profilo S.p.A. Copyright (C) 2006, 2007 Marco Bianchetti Copyright (C) 2006 Yiping Chen Copyright (C) 2006, 2007 Warren Chou Copyright (C) 2006, 2007 Cristina Duminuco Copyright (C) 2006, 2007 Giorgio Facchinetti Copyright (C) 2006, 2007 Chiara Fornarola Copyright (C) 2006 Silvia Frasson Copyright (C) 2006 Richard Gould Copyright (C) 2006, 2007 Mark Joshi Copyright (C) 2006 Allen Kuo Copyright (C) 2006 Roland Lichters Copyright (C) 2006, 2007 Katiuscia Manzoni Copyright (C) 2006, 2007 Mario Pucci Copyright (C) 2006 François du Vignaud Copyright (C) 2007 Affine Group Limited QuantLib includes code taken from Peter Jäckel's book "Monte Carlo Methods in Finance". QuantLib includes software developed by the University of Chicago, as Operator of Argonne National Laboratory. Redistribution and use in source and binary forms, with or without modification, are permitted provided that the following conditions are met: Redistributions of source code must retain the above copyright notice, this list of conditions and the following disclaimer. Redistributions in binary form must reproduce the above copyright notice, this list of conditions and the following disclaimer in the documentation and/or other materials provided with the distribution. Neither the names of the copyright holders nor the names of the QuantLib Group and its contributors may be used to endorse or promote products derived from this software without specific prior written permission. THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS" AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE COPYRIGHT HOLDERS OR CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.