LOOT and its API are distributed under the GNU General Public License v3.0. The documentation is distributed under the GNU Free Documentation License v1.3. The full texts of both licenses are included in Copyright License Texts.
While the GPL license allows anyone to make derivative works of LOOT, the LOOT Team encourages those thinking of doing so to first discuss their reasoning for such an endeavour with the Team. It may be that what the derivative work would do differently is already planned for a future version of LOOT or would be happily integrated into LOOT, thus avoiding any extra effort by others.
LOOT has been specifically designed to prevent it being locked into the LOOT Team’s official masterlist repositories. Nevertheless, the LOOT Team appeals to the community to avoid the distribution of unofficial masterlists, as this would only hamper the effort to create one set of stores for load order information. Any issues with a masterlist are best brought to the attention of the LOOT Team so that they may be remedied.
GNU Free Documentation License Version 1.3 Notice:
Copyright (C) 2012 WrinklyNinja
Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.3 or any later version published by the Free Software Foundation; with no Invariant Sections, no Front-Cover Texts, and no Back-Cover Texts.
A copy of the license is included in Copyright License Texts.