Why is jQuery released under MIT and not LGPL?
What are the benefits of using MIT compared to LGPL for a framework?
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LGPL is "infectuous", which means if you use it, you risk having to (L)GPL your own work too. GPL (and, depending on the circumstances, LGPL as well) practically excludes usage in a closed-source project.
The question should really be worded the other way around: Why is product X licensed under (L)GPL rather than MIT / Apache / BSD / Mozilla? The latter are, IMO, much closer to the spirit of "free" software than the GPL family (after all, you can't force freedom on people).
In a very quick summary:
GPL: if you use my code in yours, you must distribute your code as I do for mine;
LGPL: if you modify my code, you must distribute your modifications. You can include unmodified LGPL code in proprietary code under certain conditions.
MIT: do what you want with my code excepted pretend that the code is yours
Then there is the fine prints which may confuse the matter and the political goals of the FSF -- but some use the (L)GPL without sharing those.
Well, the obvious one is that it's a more permissive license. It allows the library to be used more widely, without the restrictions on derivative works that the (L)GPL brings along with it. When the goal is to have lots of people use your library, and not to try to force developers to conform to a certain ideology, that can be a useful thing.
The LGPL offers more benefits to the software creator, whereas the MIT offers more benefits to the software user.
If you want people to happily bundle your software with their software, choose the MIT license. If you want your software to be bundled separately and never as closely integrated with whatever package is using it, use the LGPL.
The LGPL is less restrictive than the GPL. If you write an extension to a program covered by the LGPL, you DO NOT HAVE TO RELEASE THE SOURCE. If you change the program itself, you have to release the changes. With the GPL, you need to release the source for the extensions. With the MIT license, you just have to acknowledge that you're using the code in your application.