Refactor licensing to clearly separate MIT and Pro scopes

Implements cleaner license separation approach:
- MIT License applies to lib/react_on_rails/** (except pro/) and node_package/src/** (except pro/)
- Pro License applies exclusively to pro/ directories
- Removes contradictory language about prohibiting MIT code modification
- Clarifies that MIT code can be modified, but using it to access Pro features without a license is prohibited

Changes:
- LICENSE.md: Restructured to clearly define license scopes upfront
- DIRECTORY_LICENSING.md: Added distinction between MIT modification rights and Pro usage restrictions
- LICENSING_FAQ.md: Added FAQ explaining modification rights vs usage restrictions

This resolves the legal contradiction where MIT-licensed code included anti-circumvention restrictions,
which conflicts with MIT's grant of unrestricted modification rights.

🤖 Generated with [Claude Code](https://claude.ai/code)

Co-Authored-By: Abanoub Ghadban <[email protected]>

Author: github-actions[bot]

LICENSE.md

@@ -1,37 +1,40 @@
 # Licensing
 
-- **Core**: MIT (this file)
-- **Pro**: see [REACT-ON-RAILS-PRO-LICENSE.md](./REACT-ON-RAILS-PRO-LICENSE.md)
+This repository contains code under two different licenses:
 
-## LicenseRef-Proprietary
+- **Core**: MIT License (applies to most files)
+- **Pro**: React on Rails Pro License (applies to specific directories)
 
-```
+## License Scope
+
+### MIT Licensed Code
+
+The following directories and all their contents are licensed under the **MIT License** (see full text below):
+
+- `lib/react_on_rails/` (excluding `lib/react_on_rails/pro/`)
+- `node_package/src/` (excluding `node_package/src/pro/`)
+- All other directories in this repository not explicitly listed as Pro-licensed
+
+### Pro Licensed Code
+
+```text
 SPDX-License-Identifier: LicenseRef-Proprietary
 ```
 
-The proprietary portions of this software are licensed under the React on Rails Pro License. See [REACT-ON-RAILS-PRO-LICENSE.md](./REACT-ON-RAILS-PRO-LICENSE.md) for complete terms.
-
-**Proprietary directories:**
+The following directories and all their contents are licensed under the **React on Rails Pro License**:
 
 - `lib/react_on_rails/pro/`
 - `node_package/src/pro/`
 
-**Usage restrictions:**
+See [REACT-ON-RAILS-PRO-LICENSE.md](./REACT-ON-RAILS-PRO-LICENSE.md) for complete Pro license terms.
 
-- Pro features require a valid React on Rails Pro subscription
-- Any attempt to circumvent license validation is prohibited
-- See REACT-ON-RAILS-PRO-LICENSE.md for full terms and conditions
+**Important:** Pro-licensed code is included in this package but requires a valid React on Rails Pro subscription to use. Using Pro features without a valid license violates the React on Rails Pro License.
 
 ---
 
-## MIT License for Core React on Rails
+## MIT License
 
-This license applies to all files within this repository, with the exception of the code located in the following directories, which are licensed separately under the React on Rails Pro License:
-
-- `lib/react_on_rails/pro/`
-- `node_package/src/pro/`
-
-**Important:** The Pro-licensed directories contain code that is included in this package but requires a valid React on Rails Pro subscription to function. Any attempt to circumvent, bypass, modify, or disable the license validation mechanisms is strictly prohibited and constitutes a violation of this license and the React on Rails Pro License.
+This license applies to all MIT-licensed code as defined above.
 
 Copyright (c) 2017, 2018 Justin Gordon and ShakaCode  
 Copyright (c) 2015–2025 ShakaCode, LLC
@@ -62,7 +65,12 @@ SOFTWARE.
 
 ## React on Rails Pro License
 
-The code in the directories listed above is part of the React on Rails Pro framework and is licensed under the React on Rails Pro License.
-
-You can find the full text of the license agreement here:
+For Pro-licensed code (as defined in the "License Scope" section above), see:
 [REACT-ON-RAILS-PRO-LICENSE.md](./REACT-ON-RAILS-PRO-LICENSE.md)
+
+**Key Points:**
+
+- Pro features require a valid React on Rails Pro subscription for production use
+- Free use is permitted for educational, personal, and non-production purposes
+- Modifying MIT-licensed interface files is permitted under MIT terms
+- However, using those modifications to access Pro features without a valid license violates the Pro License

docs/DIRECTORY_LICENSING.md

@@ -19,7 +19,12 @@ react_on_rails/
 └── [all other directories]       # MIT
 ```
 
-**Exception:** The `node_package/src/pro/` directory contains actual Pro implementation code with license validation. The code is included in the package but requires a valid Pro license to function.
+**Exception:** The `node_package/src/pro/` directory contains Pro implementation code licensed under the React on Rails Pro License. This code is included in the package but requires a valid Pro license to use.
+
+**Important Distinction:**
+- **MIT-licensed interface files** (outside `pro/` directories) can be freely modified under MIT terms
+- **Using those modifications to access Pro features** without a license violates the Pro License
+- **Pro-licensed files** (inside `pro/` directories) require a Pro license to use in any way
 
 ### react_on_rails_pro Repository - Pro Licensed
 

docs/LICENSING_FAQ.md

@@ -95,7 +95,7 @@ react_on_rails/ (monorepo root)
 
 **A:** We maintain two separate repositories:
 
-- **react_on_rails** (MIT) - Core functionality, completely free. Pro features are included but gated behind license validation as stated in LICENSE.md
+- **react_on_rails** (MIT + Pro) - Core functionality is MIT-licensed and completely free. Pro features (in `pro/` directories) are Pro-licensed and require a subscription for production use
 - **react_on_rails_pro** (Pro License) - Advanced features, subscription required for production
 
 ### Q: What requires a Pro subscription?
@@ -110,6 +110,14 @@ react_on_rails/ (monorepo root)
 
 See [REACT-ON-RAILS-PRO-LICENSE.md](../REACT-ON-RAILS-PRO-LICENSE.md) for complete Pro license terms.
 
+### Q: Can I modify the MIT-licensed interface files?
+
+**A:** Yes! Under the MIT license, you can freely modify any MIT-licensed files (those outside `pro/` directories). However:
+
+- **Permitted:** Modifying MIT-licensed code for your own purposes
+- **Not Permitted:** Using those modifications to access Pro features without a valid license
+- **Distinction:** The MIT license grants you modification rights, but the Pro License restricts unauthorized use of Pro features
+
 ### Q: Can I try Pro features for free?
 
 **A:** Yes! Pro license allows free use for: