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SIL International designed the Open Font License for use with many of their Unicode fonts, including Gentium Plus, Charis SIL, and Andika. The license was first released in November 2005, six months after the GPL font exception was released.
OFL is a free and open source license. The license is considered free by the Free Software Foundation, which states that a simple hello world program is enough to satisfy the license's requirement that fonts using the license be distributed with computer software when selling them. The Debian project agrees.
The Open Font License is a free software license, and as such permits the fonts to be used, modified, and distributed freely (so long as the resulting fonts remain under the Open Font License). However, the copyright holder may declare the font's name as being a "Reserved Font Name", which modified versions then cannot bear (this includes subsetting for web fonts). The License permits covered fonts to be freely embedded in documents under any terms, but it requires that fonts be packaged with software if they are sold. Open-source fonts are a popular choice among designers. Most open-source fonts utilize the Open Font License (or OFL) by SIL international. The only stipulation is that anyone cannot charge others to use them.
The intent is to keep people from making money by simply redistributing the fonts. The only people who ought to profit directly from the fonts should be the original authors, and those authors have kindly given up potential direct income to distribute their fonts under the OFL.