Microsoft Cracks Down On VS Code Forks – What’s Happening and Why It Matters

In a surprising but important move, Microsoft is tightening its grip on how Visual Studio Code — the massively popular open source code editor — is being used in downstream forks. According to developer Theo Browne (known online from the T3 Stack), Microsoft has issued takedown notices and changed its licensing enforcement regarding VS Code’s use of branding, icons, and Microsoft-specific features. While VS Code itself is built on the open source Monaco editor and remains under the permissive MIT License, the full “VS Code” product — the one most developers download — includes proprietary Microsoft features that are not freely redistributable without Microsoft's explicit permission. This crackdown particularly affects forks like VSCodium and other rebranded or modified versions of VS Code being redistributed with Microsoft’s trademarks or proprietary support baked in. So what does this mean for developers? Let’s dig in.

Key Points:

• Microsoft is enforcing its license terms around Visual Studio Code more aggressively, especially in how forks and custom versions use Microsoft property.

• The Visual Studio Code repository is open source under the MIT License, but the full packaged binary with branding and specific Microsoft features is not — it's under a proprietary license.

• Developer Theo Browne notes in his video: “Microsoft has started sending legal letters to people who redistribute VS Code forks with prohibited features.”

• The heart of the issue: forks like VSCodium strip out Microsoft’s branding but may still include elements that Microsoft considers proprietary.

• Affected developers may need to strip more than just branding — such as telemetry, update services, and exclusive Microsoft extensions.

• This has sparked debate in the open source world about where the line lies between open-source code and proprietary branding inside developer tools.

• Notable alternatives like VSCodium remain legal as long as all proprietary assets are removed, but projects need to be extra cautious now.

• Theo argues this could push more developers to consider fully open-source editors like Neovim or Zed — tools gaining traction for transparency and customization.

• Similar concerns have popped up before around source-available licenses, such as Elastic's license changes or MongoDB’s Server Side Public License.

• Bottom line: Microsoft’s enforcement is legal and expected, but it’s correcting a gray area that many fork maintainers may have misunderstood or ignored.

Quote to highlight:
“Just because the source code is open doesn't mean the product is free to clone wholesale — and Microsoft is making that very clear.”

Final Thoughts:
Microsoft is reminding the dev world that while open source is a beautiful thing, it still plays by legal rules — especially when it comes to trademarks and proprietary content. If you're using or maintaining a VS Code fork, now's a good time to make sure you're on the right side of that license fence.
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