Update LICENSE.md to explicitly grant usage for open-source projects

Author: marcobambini

LICENSE.md

@@ -1,26 +1,41 @@
-Elastic License 2.0
+Elastic License 2.0 (modified for open-source use)
 
 Copyright © 2025 SQLite Cloud, Inc.
 
-This software is licensed under the Elastic License 2.0.
+This software is licensed under the Elastic License 2.0, with the additional grant described below.
 
-You may not use this file except in compliance with the Elastic License 2.0.
+You may not use this file except in compliance with the Elastic License 2.0 and the conditions outlined here.
 
 You may obtain a copy of the Elastic License 2.0 at:
 
-    https://www.elastic.co/licensing/elastic-license
+```
+https://www.elastic.co/licensing/elastic-license
+```
 
 Software distributed under the Elastic License is distributed on an "AS IS" BASIS,
 WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 
 See the Elastic License 2.0 for the specific language governing permissions and limitations under the license.
 
-The following conditions apply:
+---
 
-1. You may use, copy, distribute, and prepare derivative works of the software, in each case in source or object form, with or without modification, **only for non-production use or with a license from SQLite Cloud, Inc. for production use.**
+## Additional Grant for Open-Source Projects
 
-2. You may not provide the software to third parties as a managed service, such as a hosted or cloud-based service, unless you have a license for that use.
+In addition to the permissions granted under the Elastic License 2.0:
 
-3. The software may not be used to circumvent the license grant limitations.
+* **Free Use in Open-Source Projects**:
+  You may use, copy, distribute, and prepare derivative works of the software — in source or object form, with or without modification — freely and without fee, provided the software is incorporated into or used by an **open-source project** licensed under an OSI-approved open-source license.
 
-4. Any permitted use is subject to compliance with the Elastic License 2.0 and applicable law.
+---
+
+## Conditions
+
+1. For **open-source projects**, the software may be used, copied, modified, and distributed without restriction or fee.
+
+2. For **non–open-source or commercial production use**, you may use, copy, distribute, and prepare derivative works of the software only with a commercial license from SQLite Cloud, Inc.
+
+3. You may not provide the software to third parties as a managed service, such as a hosted or cloud-based service, unless you have a license for that use.
+
+4. The software may not be used to circumvent the license grant limitations.
+
+5. Any permitted use is subject to compliance with the Elastic License 2.0, this additional grant, and applicable law.