The primary difference between Linux and many other popular contemporary operating systems is that the Linux kernel and other components are free and open source software. Linux is not the only such operating system, although it is the best-known and widely used one. Some free and open source software licences are based on the principle of copyleft, a kind of reciprocity: any work derived from a copyleft piece of software must also be copyleft itself. The most common free software license, the GNU GPL, is used for the Linux kernel and many of the components from the GNU project.

As an operating system underdog competing with mainstream operating systems, Linux cannot rely on a monopoly advantage; in order for Linux to be convenient for users, Linux aims for interoperability with other operating systems and established computing standards. Linux systems adhere to POSIX, SUS, ISO, and ANSI standards where possible, although to date only one Linux distribution has been POSIX.1 certified, Linux-FT.

Free software projects, although developed in a collaborative fashion, are often produced independently of each other. However, given that the software licenses explicitly permit redistribution, this provides a basis for larger scale projects that collect the software produced by stand-alone projects and make it available all at once in the form of a Linux distribution.

A Linux distribution, commonly called a “distro”, is a project that manages a remote collection of Linux-based software, and facilitates installation of a Linux operating system. Distributions are maintained by individuals, loose-knit teams, volunteer organizations, and commercial entities. They include system software and application software in the form of packages, and distribution-specific software for initial system installation and configuration as well as later package upgrades and installs. A distribution is responsible for the default configuration of installed Linux systems, system security, and more generally integration of the different software packages into a coherent whole.